So, What Are Bullion Coins?
Bullion Coins are coins manufactured to trade as a commodity and usually have a different value to the stamped or manufactured value determined by the commodities market.
Bullion is simply the value of the metal.
There is nothing extra for design, striking or quality.
The beautiful cases that usually come with the coin or coins adds nothing to the value.
Bullion is the price of the metal in the international commodities exchanges.
In Gold, silver and Platinum the price is called the spot price and may vary minute to minute.
In order to manufacture bullion coins a design is commissioned and an issuing authority issues these items at a premium over bullion value but certifies weight and fineness.
The market accepts these certifications but does not value the items at more than bullion value per ounce, in spite of what added cost was applied at manufacturing.
Bullion is traded on very small margins and in cash.
Traders will try to purchase bullion at or near the spot price and sell at spot or purchase plus 5 or 6 percent.
This percentage would be impossible to operate a normal business with.
If you require postage you are further adding to the cost plus that you are paying.
Smaller resellers may purchase small amounts of bullion per ounce, at plus 3 to 5 percent and on sell at plus 8 to 10 percent which is normal and still add postage to this amount.
Why no credit cards or PayPal? Because these processing companies charge the seller anywhere between 2 and 5 percent commission to handle the transaction which is often more that the vendor is actually making after their overhead costs.Bullion bulk coins are a good way to invest in the metals market if you feel that it is to rise.
YOU have physical possession.
Do not purchase from places also willing to store them for you. It is just not prudent business.
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