What Are Bullion Coins
What bullion coins are and how they are priced
Bullion coins are government-issued coins made from precious metals. What matters here most is the actual content of gold, silver, platinum or another metal in the coin, not its appearance or stated face value.
If you see a “spot price,” that’s the live market price per troy ounce of that particular metal. Bullion coins nearly always cost a bit more than spot because you’re also paying for minting, shipping and a dealer’s own margin. And when the price of gold drops, the price of your coin usually falls too, minus any premium you paid. Collector coins are something else, if you want a detailed comparison, we have a guide to numismatic vs bullion coins.
Do be aware that gold and silver can be volatile, so if you buy or sell at a bad moment it’s possible to lose money.
Major bullion coins compared
- Krugerrand (South Africa): Issued since 1967, each contains one troy ounce of gold. The coin is 22-karat (meaning 91.67 percent gold), with copper added for durability.
- Canadian Maple Leaf (Canada): Minted in .9999 fine gold. Available in several sizes. Every coin is marked with its weight and gold content.
- American Gold Eagle (United States): Produced in 22-karat gold, also available in different fractional weights.
- Vienna Philharmonic (Austria): A .9999 pure gold coin from the Austrian Mint. The artistic design changes on occasion.
- Britannia (United Kingdom): Issued by the Royal Mint. You’ll find its gold purity clearly marked on each coin.
People judge bullion coins mostly by gold (or other metal) content. Purity and weight are critical, if you’re unsure about karats or fineness, we explain both in our gold purity, karats and hallmarks resource. Counterfeit coins do exist, especially for popular makes; so use a reliable dealer and make sure coin specs match what the mint publishes.
Legal tender and tax concerns
Bullion coins are often recognized by law (“legal tender”) in their home country, although their face value is tiny compared to the amount of gold or silver they actually hold. You’ll see the origin stamped on each, but legal tender status doesn’t raise a coin’s market value as bullion. If you’re unsure whether to buy coins or gold bars, see our comparison: gold bars vs coins.
Taxes work differently across countries. In some places, gold coins meeting certain purity and form standards are exempt from VAT or sales tax; in others, they’re taxed like other personal goods. Capital gains from selling coins may be treated in a separate way. Always check with your tax authority or adviser in advance.
Frequently asked questions
Are Krugerrands pure gold?
No, Krugerrands are not made from pure gold. Every Krugerrand contains a full troy ounce of gold, but it’s mixed with copper to create a harder 22-karat alloy, so the total gold content is 91.67 percent. This figure, not looks, is what buyers focus on.
Are bullion coins a good investment?
The value of bullion coins isn’t guaranteed to rise. Their price tracks the metal market and can decrease as well as increase. Any premium over spot is not always recouped, especially if you need to sell quickly. Whether bullion coins fit your aims comes down to your own situation. If you’re not sure, consider getting advice from a licensed professional.