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California Numismatic Investments

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About Gold, Platinum, & Palladium
Bullion Products

Most everyone knows something about bullion coins and bars, but the number of these products may cause even the experienced investor to pause. The good news is that most are similar in nature, meaning they move up or down directly with the price of gold, platinum, or palladium on a daily basis, their buy and sell prices are easy to understand, and all are very liquid. So these products are easy to buy and easy to sell, anywhere in the world.

The precious metals are measured by the Troy ounce (31.10 grams), as opposed to your bathroom or postal scale weight which is called Avoirdupois. An Avoirdupois ounce is 28.35 grams. The Troy ounce is about 10% heavier than Avoirdupois. 14.58 troy ounces = 16 postal scale ounces.

All of these bullion products move directly with the New York Commodity Exchange, which opens for trading at 5:30 AM and closes at 10:30 AM California time. After the COMEX is closed the price of these coins usually remain constant until the beginning of the next trading day. On occasion, however there is an aftermarket which may cause quote changes.

A simple definition of any bullion coin is one in which there is little premium above the content or weight value of the coin. In other words you are buying only the commodity itself. Coins like this will increase in value if world markets go up and will decrease in value if world markets go down. This happens because bullion manufacturers produce large numbers of them each year, thus eliminating the notion of these coins being rare in any sense.

So what is the difference between a bullion gold coin and a bar of bullion? In the early days of bullion trading the bar was popular. More and more people became interested in owning gold so trading volume increased dramatically which sometimes led to problems with bars in general. They were produced by private manufacturers, so at times it was difficult to know the exact weight and purity. This led to confusion and did not encourage public participation.

That was before governments decided to produce bullion coins. Producing a bullion coin to replace the bar was a great idea because international standards were developed and coins were uniformly produced. This opened up the world to the easiest way of buying and selling bullion, and because large numbers of coins are produced the premiums are similar for bullion coins and bullion bars.

Today gold bars are also popular and safe because large private manufacturers like PAMP Suisse standardized production and created a polished look which is fully accepted by the public and traders worldwide. In the past reportability was never a problem because the government had few rules but today a few of these bullion products do have dealer reporting rules. If this bothers you simply avoid those products as there are many bullion products which move directly with the precious metals which have no dealer reporting rules. See the List of Reportable Bullion Transactions.

GOLD BULLION COINS Gold Bullion Prices All these coins move directly with the price of gold, and are easy to buy, sell, and store. United States Gold Eagle & Buffalo In 1986, the United States Mint developed the US Gold Eagle series. It, too, comes in the standard four sizes (1 oz., 1/2 oz., 1/4 oz., & 1/10 oz.), is 0.916 fine gold, and is very popular. These internationally recognized gold coins come in both uncirculated and proof condition. To make this simple just understand that there are less proof coins produced and they require a few extra steps in the production process so they are more expensive. This does not however make them better and unless you are a coin collector you may do better to consider only the uncirculated examples for your bullion portfolio. Only the date on this series changes each year, in other words the front and back of the coin remain the same which leads to less confusion when buying or selling in larger numbers. These bullion coins do not have any dealer reporting requirements when you are buying or selling which also helps in their popularity.   Gross Weight Fineness Gold Content Diameter Thickness One Ounce US Eagle Gold 1.0909 Troy ounces 33.931 grams 0.916 (22 kt) 1 Troy ounce 31.1035 grams 1.287" 32.70 mm 0.111" 2.83 mm Half-Ounce US Eagle Gold 0.5455 Troy ounces 16.966 grams 0.916 (22 kt) 0.5000 Troy ounces 15.5517 grams 1.063" 27.00 mm 0.085" 2.16 mm Quarter-Ounce US Eagle Gold 0.2727 Troy ounces 8.483 grams 0.916 (22 kt) 0.2500 Troy ounces 7.7759 grams 0.866" 22.00 mm 0.070" 1.79 mm Tenth-Ounce US Eagle Gold 0.1091 Troy ounces 3.3393 grams 0.916 (22 kt) 0.1000 Troy ounces 3.1103 grams 0.650" 16.50 mm 0.050" 1.27 mm US PROOF 1 oz. Gold Eagle/ Box With Certificate 1.0909 Troy ounces 33.931 grams 0.916 (22 kt) 1 Troy ounce 31.1035 grams 1.287" 32.70 mm 0.111" 2.83 mm Gold Buffalo 1.0001 Troy oz. 31.108 g 24 kt 1 Troy ounce 31.1035 grams 1.287" 32.70 mm 0.111" 2.83 mm Gold Buffalo Proof 1.0001 Troy oz. 31.108 g 24 kt 1 Troy ounce 31.1035 grams 1.287" 32.70 mm 0.111" 2.83 mm United States $20 Gold $20 Liberty and $20 Saint-Gaudens - These coins in circulated grades (Extra Fine or Almost Uncirculated) make an excellent choice for someone who wants a bullion type investment but is worried about government confiscation. The premiums on circulated $20's are low most of the time but in a heated market premiums can move higher quickly so check the dollar amount over spot before purchase and remember these coins contain slightly less than 1 ounce pure gold.   Gross Weight Fineness Gold Content Diameter $20 Liberty 33.436 g 0.900 0.9675 Troy oz. 34 mm $20 Saint-Gaudens 33.436 g 0.900 0.9675 Troy oz. 34 mm South African Krugerrand The South African Mint was one of the first to develop this market with the Krugerrand series of gold coins which are 1 oz., the 1/2 oz., the 1/4 oz., and the 1/10 oz.. These coins are 0.916 fine gold with some copper alloyed to keep them from being too soft. As with all bullion coins the 1 oz. size is the most popular and the most economical to own. At one time this popular gold bullion coin was the world standard and is still very popular today but other bullion choices have taken away market share. The front and back of this coin does not change year over year, only the date changes, making these very recognizable. We are required by law to report your sale of 25 or more ounces of Krugerrands on I.R.S. Form 1099B.   Gross Weight Fineness Gold Content Diameter One Ounce Krugerrand Gold 33.933 g 0.9167 (22 kt) 31.1033 g 1 Troy oz. 32.7 mm Chinese Panda The Chinese introduced the gold Panda series which, like the Maple Leaf, is 0.999 pure. Unlike other world bullion coins the Chinese chose to change the picture of the Panda bear each year and in doing so added to its growing collectability. This series offers a variety of sizes and is a popular bullion coin because it trades close to its weight. But each new year the coin's small premium and limited production has developed a collectible following which could also mean these gold coins will increase in value as the collector base increases. The quality of the Chinese minting is superb easily ranking among the finest in the world and added symbolic features promise luck to the owner. There is also a new book on these coins called Gold and Silver Panda Coin Buyer's Guide by Peter Anthony. Peter is an old friend of ours and took many of the pictures in his new book upstais in the CNI Building. His book is a great example of what can come from dedication and study of a particular series.   Gross Weight Fineness Gold Content Diameter 31.1033 g 1 Troy oz. 0.9999 (24 kt) 31.1033 g 1 Troy oz. 32 mm Austrian/Hungarian 100 Corona Both the Austrian and Hungarian 100 Corona coin contain slightly less than one ounce of pure gold (0.98 oz.) and both were very popular bullion coins in the 1970's. They still have a large following today but less market share than the modern bullion 1 oz. coins simply because they are slightly more difficult to figure because of their weight. Visit the Austrian Mint.   Gross Weight Fineness Gold Content Diameter 33.8753g 1.0891 troy oz. 0.900 30.4878g 0.9803 troy oz. 37.08 mm Mexican 50 Peso The Mexican 50 Peso gold contains 1.2 oz. gold and is a very popular bullion coin today. Because of their design and purity (including an incused edge) these bullion coins can take a beating and still remain beautiful for resale. It does take a bit more time to figure value because of the 1.2 oz. size but they carry no dealer reporting when buying or selling. Visit the Mexican Mint.   Gross Weight Fineness Gold Content Diameter 41.667 g 0.900 1.2057 Troy oz. 37.08 mm Australian Nugget/Kangaroo The Australian Perth Mint entered the bullion market with their Australian Nugget/Kangaroo Series and produced a fine looking proof-like gold coin which is 0.999 fine and has its own hard plastic holder.   Gross Weight Fineness Gold Content Diameter One Ounce Nugget/Kangaroo Gold 31.1033 g 1 Troy oz 0.9999 (24 kt) 31.1033 g 1 Troy oz. 32.1 mm Austrian Vienna Philharmonic The Vienna Philharmonic pure gold bullion coin, produced by the Austrian Mint, is one of the most successful investment coins in the world today because while the coin itself is pure gold, the Austrian Mint took the time to develop a mat finish on these coins which holds up much better over time.  Its fineness, its techinical excellence and its worldwide recognition means that you are able to trade these coins for their full gold value wherever bullion coins are sold. Produced by the Austrian Mint, the Vienna Philharmonic is made of pure gold, also known as 999.9/1000 or 24 karat gold.  The Austrian Mint has been producing precious metal coins for over 800 years and is well known for its high quality and reliable excellence.  The Austrian Mint is a 9001 ISO certified company. The Vienna Philharmonic pure gold coin is named in honor of the world renowned orchestra, the Vienna Philharmonic. The design on one side of the coins features a bouquet of instruments, including: the string bass, cellos, violins, a bassoon, a harp and a Viennese horn. The other side of the coin depicts the great organ of the Golden Hall in Vienna, home to the Vienna Philharmonic Orchestra and site of the annual New Year's Day Concert that is televised around the world.  This side of the coin also depicts the face value in euros, and the country of issue "Republik Oesterreich", the Republic of Austria, giving the coin its legal tender status.  Also found on this side of the coin is the purity 0.9999 and weight expressed in ounces.   Gross Weight Fineness Gold Content Diameter 20 oz. 2000 Euros 622.13 g 0.999 622.07 g 74.0 mm 1 oz. 100 Euros 31.103 g 0.999 31.103 g 37.0 mm 1/2 oz. 50 Euros 15.552 g 0.999 15.552 g 28.0 mm 1/4 oz. 25 Euros 7.776 g 0.999 7.776 g 22.0 mm 1/10 oz. 10 Euros 3.110 g 0.999 3.110 g 16.0 mm French and Swiss 20 Franc The French Mint and Swiss Mint's 20 Franc are also popular bullion coins because some believe they are not subject to confiscation, but be careful about pricing on these smaller gold coins as a few national dealers basically rob the investing public who don't take the time to compare prices between dealers.   Gross Weight Fineness Gold Content Diameter French 20 Franc 6.45 g 0.916 (22 kt) 0.186 oz. 21 mm Swiss 20 Franc Helvetia 6.45 g 0.916 (22 kt) 0.186 oz. 21 mm British Gold Sovereign The British Royal Mint's Gold Sovereign is also a popular bullion coin because some believe they are not subject to confiscation, but be careful about pricing on these smaller gold coins as a few national dealers basically rob the investing public who don't take the time to compare prices between dealers.   Gross Weight Fineness Gold Content Diameter 7.9881 g 0.916 (22 kt) 0.2354 oz. 22.05 mm Canadian Gold Maple Leaf The Royal Canadian Mint produced the gold Maple Leaf. They produced the same sizes in 0.999 fine gold meaning they are pure with no alloys. Keep in mind all 1 ounce bullion coins contain the same amount of gold. Alloyed or not makes no difference in value. Some prefer pure gold coins which can be melted and some want alloyed coins which do not scratch. This particular bullion coin is easy to buy and sell in quantity if the coins are perfect, but because the Maple Leaf is so soft and has no individual special housing it can pick up nicks and scratches rather easily, which sometime leads to a double pricing standard when selling. Because of this the beginner should consider well before making this their primary bullion coin. The obverse or front of this coin now uses an updated picture of the queen so there are two varieties that may be encountered. We are required by law to report your sale of 25 or more ounces of gold Maple Leafs on I.R.S. Form 1099B.   Gross Weight Fineness Gold Content Diameter 31.1033 g 0.999 1 Troy oz. 30.0 mm

PLATINUM BULLION COINS Platinum Bullion Prices Like gold the initial buying and selling of platinum bullion was in bar form. A better way of trading was needed, for bars are subject to state sales tax. Still it took years before a platinum bullion coin was developed which is sales tax exempt. Isle of Man Noble In 1984, the Pobjoy Mint of the Isle of Man produced the Noble bullion platinum coin series. This was exciting because it made buying and selling platinum for content a simple proposition and for years the Noble led the platinum bullion invest pack, but sadly today is no longer in production but does easily trade on the secondary market.   Gross Weight Fineness Platinum Content Diameter Thickness   31.103 grams 0.9995 1.000 Troy ounces 31.103 grams 32.70 mm 2.38 mm Australian Koala It was followed by the Australian Perth Mint's platinum Koala series in 1988, which was a winner because it had its own hard plastic holder. The picture of the Koala also played big in Japan where platinum jewelry is popular. This series is available in all sizes as well but fractional platinum coins can develop higher premiums so the larger sizes are recommended.   Gross Weight Fineness Platinum Content Diameter Thickness 31.185 grams 0.9995 1.000 Troy ounces 31.072 grams 32.10 mm 2.70 mm Canadian Maple Leaf The Royal Canadian Mint followed suit in 1989 with its popular Canadian Platinum Maple Leaf series available in 1 oz., 1/2 oz., 1/4 oz., and 1/10 oz.. United States Platinum Eagle The United States Mint developed the Platinum Eagle in 1997. All of these bullion coins will move directly with the world price of platinum but the one ounce sizes are by far the most popular. They have replaced the older bars, are recognized and traded in quantity around the world, and are easy to store.   Gross Weight Fineness Platinum Content Diameter Thickness One Ounce US Eagle Platinum 1.0005 Troy ounces 31.120 grams 0.9995 0.9995 Troy ounces 31.072 grams 1.287" 32.70 mm 0.094" 2.38 mm

PALLADIUM BULLION Palladium Bullion Prices Canadian Maple Leaf The Royal Canadian Mint's Palladium Maple Leaf is a convenient way to own palladium and is not subject to sales tax when purchased in California. This particular coin is highly recognized and easily traded worldwide so it makes a great choice if you are thinking about palladium bullion investment.   Gross Weight Fineness Palladium Content Diameter 31.103 grams 0.9995 1 Troy oz. 33.00 mm