Bullion vs Numismatic Coins: What Sets the Price
A bullion coin is priced mainly by the metal it contains; a numismatic coin is priced mainly by its rarity and condition. That is why two gold coins with the same weight can be priced very differently. This guide explains the three groups you will see in our coin library.
Bullion coins
Bullion coins are made to hold a known weight of pure metal and are priced close to the metal's value: the spot price plus a premium for minting and distribution. Examples include the American Gold Eagle, Canadian Gold Maple Leaf, South African Krugerrand and American Silver Eagle. Their prices move almost one for one with the spot price.
Numismatic coins
Numismatic coins are priced mainly as collectibles: by rarity, age, history, mintage and grade. Their metal value sets a floor, but the price can be many times higher. Older United States gold coins struck before 1933 are a common example: the US stopped striking gold coins for circulation in 1933, so the surviving coins are valued for their scarcity and condition as well as their gold.
Semi-numismatic coins
Semi-numismatic coins sit in between: modern coins whose price includes a collector premium on top of the metal, for example a graded MS-70 bullion coin, a proof coin, or a low-mintage release. They usually follow the spot price but carry a larger and less predictable premium.
Purity: 22 karat and 24 karat
Gold coins are not all pure gold. The American Gold Eagle and the Krugerrand are 22 karat (91.67% gold) and are alloyed for hardness, but are made heavier so that a one-ounce coin still contains one full troy ounce of gold. The Canadian Gold Maple Leaf is 99.99% gold. When comparing coins, compare the pure metal content, not the total weight. Our karat and purity chart lists the common purities.
How to check what is metal and what is premium
- Find the coin's pure metal content in troy ounces (each entry in the coin library lists it).
- Multiply by today's spot price: that is the melt value.
- Anything above that in an asking price is premium: making and dealer costs for bullion, collector value for numismatic coins.
When you sell, bullion is usually bought near its melt value, while numismatic coins depend on a collector paying for their rarity and grade. For what grades mean, see Coin grades explained.