Are Bullion Coins a Good Investment?

Investing in physical gold and silver has long been a healthy addition to any portfolio, putting the brakes on inflation, mitigating tough economic times, and acting as a growth spurt of wealth. But when taking the dive into the lucrative world of precious metals, are bullion coins really a good investment? Let’s find out.

Advantages of Owning Bullion Coins

Besides the edge they’ll give your portfolio, precious metal coins are a perfect investment tool for a breadth of reasons. Here are a few advantages to investing in bullion coins:

• Some Precious Metals are Still Considered Money

Gold isn’t typically used as currency today, but if you own certain gold coins, you can theoretically pay for some goods and services. And since gold is one of the most long-standing systems of currency in history, if financial systems were to fail, it’s likely that gold would step back into the mix as the currency king—making gold bullion especially appealing to have around in the case of a financial crisis.

• Variety

Where bullion bars are simple and rather understated, bullion coins have many faces. There’s the American Eagle, Canadian Silver Maple Leaf, Chinese Silver Panda, and options like the Australian Kangaroo Gold Coin Series or the Australian Kookaburra Silver Coin series, each made by The Perth Mint and available in 99.99 percent purity.

Image: 2022 Perth Mint Bullion Coin Series 

While the varying shapes and designs of bullion coins don’t vary much in a numismatic value, they are a nice touch of individuality for investors that desire a certain shape, animal, or design on their precious metal coins.

• Lower Barrier to Entry

Bullion bars are usually made in higher weights, making a typical 10 oz gold cast bar on the pricey side for those that aren’t big-time investors. But even though bullion coins can be made in different weights (some are also made in 10 oz variations), a common bullion coin weighs one troy ounce, making individual bullion coins a lower barrier to entry for smaller investors that aren’t ready to invest in a 10oz or 1 kg gold or silver bar.

• Ease of Storage

Bullion Coins aren’t something that you can digitally store in a bank, but this factor can actually be a good thing—especially during an economic downfall. Bullion coins are easy to transport and equally easy to store, making them a smart investment choice for savvy investors. It is, however, important that bullion coins are stored in a safe, secure environment that’s protected against theft and damage. This means coins should not be stored in your home, under your mattress, or in a shoebox on the shelf above your closet.

Make sure to diligently research secure storage facilities for keeping your bullion coin investments safe. Click here for Jaggards' storage options.

• Coins are Slightly More Accepted than Bars

For those wanting to stay active in the bullion market, bullion coins tend to amass a greater interest overseas than bars. This is mainly due to differences in manufacturing and the fact that they are, after all, a coin with a face value hence easier to trade. 

Image 2: 2022 1oz Perth Mint Koala Silver Coin

We’re Jaggards, Australia’s leading bullion dealer. View our selection of bullion and numismatic coins here.