Allegiance Gold: Four Main Types of Coins

Coins fall into four main categories: bullion, proof, numismatic, and semi-numismatic. These four types of coins differ in how they are valued and each has distinct advantages and limitations from an investment standpoint. Important to note that numismatic coins are not allowed to be included in a gold or precious metals IRA; however, they continue to present a great option for investors considering to invest in precious metals from their funds outside of retirement accounts.

Bullion

Bullion has a recognized weight and fineness and is stamped as such. Most people think that bullion only comes in “bricks” or bars that are stored in depositories, but bullion coins are made from this same type of precious metals each year, making them easier to own (a coin is smaller, and thus a less expensive investment, than an entire bar).

Proof

Proof coins are a higher quality coins than bullion and are made in relatively low quantities and feature a more reflective or cameo appearance.  Proof coins are the finest quality of coin produced by the United States Mint. The term “proof” refers to the coin’s finish. Proof blanks are specially treated, hand-polished, and cleaned to ensure high-quality strikes.

Proof coins are struck using specially polished dies and are typically struck more than once or with significant pressure. The details of proof coins tend to stand out more and the field area may appear smoother than on a standard circulated coins because of the extra care taken in striking the coin. Further, proof coins are encapsulated  to maintain its quality and prevent rust and are accompanied with a certificate of authenticity and presented in special packaging. The best example would be both the iconic American Eagle coins that come in gold, silver and platinum.

Numismatic

Numismatic coins tend to be older coins that have gained value among collectors. They are valued both for their precious metal content and their artistic or collector’s value. They must be independently certified by third-party services that grade them and provide some information regarding their value. Example of numismatic coins include the $5, $10 and $20 Indian and Liberty gold coins.

Semi-Numismatic Coins

Semi-numismatic coins have both the traits of bullion and numismatic coins. Generally, semi-numismatic coins are newer bullion coins that have a limited mintage (total number produced) and are attractive to both investors and collectors. The Royal Canadian Mint produces special feature coins under its animal series coins. Over time, the value of a semi-numismatic rises above bullion due to its scarcity.

A well-diversified precious metals portfolio will include the above four types. Your Allegiance Gold coin expert will elaborate the benefit of each type of coins and guide you to choose the best options for your short and long-term needs.

Bullion Vs. Proof Vs. Numismatic Vs. Semi-Numismatic

Bullion coins tend to follow the spot price very closely.  There is no historical data for bullion coins appreciating significantly above the spot price. Despite its correlation with the spot price, bullion coins represent a great entry point to physical precious metals investments. Investors considering bullion products are exclusively investing in the underlying metal itself and not in any intrinsic value of lower mintage.  

With their exceptional quality and limited annual production, proof coins are valued well above the spot price and are deemed more valuable than bullion coins. Proof coins tend to command a higher price due to its characteristics and accompanies certificate of authenticity.

Numismatic coins are considered collectible and are not produced in modern times. Numismatic coins are generally worth more than their metal content because of the scarcity and grading nature of the coin. Like numismatics, semi-numismatic coins also have two upsides for price appreciation: movements in the spot price and its scarce nature compared to bullion coins. Low mintage coins are often sought after by collectors and investors. Low mintage coins are great to own because it further diversifies a portfolio and has an additional feature of scarcity that allows it to outperform its counterpart bullion.

When evaluating options for investing in types of gold or silver coins, it is important to consider your primary objectives. The ideal precious metals IRA portfolio will be diversified within the type of precious metals, i.e. gold, silver, platinum and palladium and further be diversified based on the type of products between IRS approved coins such as bullion, proof and semi-numismatic. Your Allegiance Gold representative will work with you to custom built and optimize your precious metals portfolio.

Allegiance Gold: Four Main Types of Coins

Coins fall into four main categories: bullion, proof, numismatic, and semi-numismatic. These four types of coins differ in how they are valued and each has distinct advantages and limitations from an investment standpoint. Important to note that numismatic coins are not allowed to be included in a gold or precious metals IRA; however, they continue to present a great option for investors considering to invest in precious metals from their funds outside of retirement accounts.

Bullion

Bullion has a recognized weight and fineness and is stamped as such. Most people think that bullion only comes in “bricks” or bars that are stored in depositories, but bullion coins are made from this same type of precious metals each year, making them easier to own (a coin is smaller, and thus a less expensive investment, than an entire bar).

Proof

Proof coins are a higher quality coins than bullion and are made in relatively low quantities and feature a more reflective or cameo appearance.  Proof coins are the finest quality of coin produced by the United States Mint. The term “proof” refers to the coin’s finish. Proof blanks are specially treated, hand-polished, and cleaned to ensure high-quality strikes.

Proof coins are struck using specially polished dies and are typically struck more than once or with significant pressure. The details of proof coins tend to stand out more and the field area may appear smoother than on a standard circulated coins because of the extra care taken in striking the coin. Further, proof coins are encapsulated  to maintain its quality and prevent rust and are accompanied with a certificate of authenticity and presented in special packaging. The best example would be both the iconic American Eagle coins that come in gold, silver and platinum.

Numismatic

Numismatic coins tend to be older coins that have gained value among collectors. They are valued both for their precious metal content and their artistic or collector’s value. They must be independently certified by third-party services that grade them and provide some information regarding their value. Example of numismatic coins include the $5, $10 and $20 Indian and Liberty gold coins.

Semi-Numismatic Coins

Semi-numismatic coins have both the traits of bullion and numismatic coins. Generally, semi-numismatic coins are newer bullion coins that have a limited mintage (total number produced) and are attractive to both investors and collectors. The Royal Canadian Mint produces special feature coins under its animal series coins. Over time, the value of a semi-numismatic rises above bullion due to its scarcity.

A well-diversified precious metals portfolio will include the above four types. Your Allegiance Gold coin expert will elaborate the benefit of each type of coins and guide you to choose the best options for your short and long-term needs.

Bullion Vs. Proof Vs. Numismatic Vs. Semi-Numismatic

Bullion coins tend to follow the spot price very closely.  There is no historical data for bullion coins appreciating significantly above the spot price. Despite its correlation with the spot price, bullion coins represent a great entry point to physical precious metals investments. Investors considering bullion products are exclusively investing in the underlying metal itself and not in any intrinsic value of lower mintage.  

With their exceptional quality and limited annual production, proof coins are valued well above the spot price and are deemed more valuable than bullion coins. Proof coins tend to command a higher price due to its characteristics and accompanies certificate of authenticity.

Numismatic coins are considered collectible and are not produced in modern times. Numismatic coins are generally worth more than their metal content because of the scarcity and grading nature of the coin. Like numismatics, semi-numismatic coins also have two upsides for price appreciation: movements in the spot price and its scarce nature compared to bullion coins. Low mintage coins are often sought after by collectors and investors. Low mintage coins are great to own because it further diversifies a portfolio and has an additional feature of scarcity that allows it to outperform its counterpart bullion.

When evaluating options for investing in types of gold or silver coins, it is important to consider your primary objectives. The ideal precious metals IRA portfolio will be diversified within the type of precious metals, i.e. gold, silver, platinum and palladium and further be diversified based on the type of products between IRS approved coins such as bullion, proof and semi-numismatic. Your Allegiance Gold representative will work with you to custom built and optimize your precious metals portfolio.