How Can You Invest in Physical Silver and Gold Bullion?

Gold bullion refers to gold products that carry little or no numismatic value. The value is solely in the gold or silver content. In today’s world are there are many options to obtain physical gold and silver.

Buying Bullion Coins vs. Bullion Bars or Rounds

Gold and silver bullion coins are produced by sovereign governments. For example Canada produces gold maple leafs, USA gold and silver eagles and gold buffaloes, China produces gold pandas. Coins have face value and are stamped by the year in which they were produced. Gold and silver bars are produced by private companies, like Johnson Matthey or PAMP. They are engraved with serial numbers and come with an assay certificate that guarantees the bar for weigh and purity. So which is best? That depends on your specific circumstances. Bars are generally better for larger buys since they come in sizes up to one kilo.  In general their premium over spot prices is lower than coins. They can be easier to store. Coins are ubiquitous and thus highly liquid. In general they are easier to sell than bars. Some gold coins carry smaller premiums over spot, like South African Krugarands. If you are buying coins for the bullion value it is best to avoid pre 1849- 1933 US gold coins like double eagles. They will always carry some numismatic value and thus you will always pay a hefty premium for their gold content. Also, if your interest is in bullion, do not pay a premium for “proof” bullion coins. Try to stick with 1 ounce coins vs fractional coins like half ounce to get the lowest premium over spot.

What are “Junk Silver” Coins?

Junk silver is a term that refers to US silver coins minted in 1964 and prior years. These coins carry no numismatic value other that the value of their silver content, but they are far from junk. For every $1 of a face value, these coins contain .715 ounces of silver, except for silver dollars which contain .773 ounces. Bags of 90% silver coins are a popular way to buy silver because usually the premium over spot silver is the lowest possible. Bags are sold in round denominations like of $100 face value or $1,000 face value.

An invitation from Cameo

Based in Vienna Virginia, Cameo has decades of experience in guiding investors on bullion investments. We are active buyers of most bullion products and can offer fair cash prices when you are ready to liquidate your coins or bars. We also stock a variety of gold, platinum and silver bullion products for quick delivery. Please call us or stop by our showroom for assistance.