Coins and bullion are both forms of physical precious metal assets, but they differ in some key ways.

The term “bullion” refers to raw, unprocessed precious metals like gold, silver, platinum, or palladium. It’s typically cast into bars or ingots of specific weights and purities. The value of bullion is primarily tied to the fluctuating market price of the underlying metal. Bullion is often seen as a straightforward investment, as its value is directly linked to the global market for precious metals.

Coins, on the other hand, are minted by governments or private mints and have a specific face value and design. In summary, while both coins and bullion involve precious metals, their primary value drivers differ. Bullion is valued for its intrinsic metal content, while coins can be valued for their metal content, numismatic value, or a combination of both. Understanding these distinctions is crucial for investors and collectors seeking to make informed decisions in the precious metals market.