Gold bullion is defined as a gold bar or coin that is made with 99.9% pure gold. When it comes to gold coins, gold bullion coins are coins minted by governments also with a fineness of .999. There are different coins that are bought and sold for investment purposes or as part of an investment portfolio. Hey have more significance and value than your normal coins in circulation, that are used on a daily basis. Most coins are made with a copper and silver alloy. In America, they still have silver dollars, silver dimes and quarters but these aren’t as pure as bullion coins.

The value of a silver coin depends on the amount of silver it contains. When you sell bullion Melbourne you have to consider the purity, weight and the spot price of silver at that particular moment have to be considered. For instance, when selling silver bullion made of 90% pure gold and weighing 0.2 a troy ounces that means it only has 0.18 troy ounces of pure silver. If the spot price of silver is $20 a troy ounce, the value of the coin will be $3.60.

 

How is this calculated?

  • Weigh the bullion in grams and convert those to troy ounces. 1 troy ounce = 31.103 grams.
  • Take the weight of the silver and divide that by 31.103 to get the weight of the silver in troy ounce.
  • If the silver weighs 6.23 grams divide that by 31.103 to get 0.2 troy ounces.
  • Convert the percentage to a decimal – 90% = 0.9
  • Multiple the actual weight of the silver by the fineness of silver, that is 0.2 x 0.8 = 0.18 troy ounces
  • Multiply the actual troy ounces of the pure silver in the coin by the current spot price which we assumed to be $20: 0.18 x 20 = $3.60.

 

Keep in mind that the spot price for silver changes all the time. There are various websites to get the current price of silver.

 

Investing in silver coins for more than just their value

You can buy silver coins as an investment. Investment-grade silver coins have a fineness of .999. Some coins produced by government mints contain 90% silver. This is silver that can salvaged and recycled to make new silver coins. For instance, American half dollars, quarters and dimes  are made with 90% pure silver. Some government minted coins that are supposed to go into circulation become rare collectable coins. Their numismatic value might be more that gold bullion value.

There is a variety of silver bullion coins minted by different foreign mints. Silver bullion coins that are minted by government mints have legal tender status. However, some mints may contract private mints to produce silver coins, you would still apply the same steps to calculate their value when you sell bullion Melbourne.

One of the most well-known and well-respected bullion brand is the South African Krugerrand, The South African Mint started to produce bullion coins in 1967, but those were gold coins. Technically, if we were to stick to bullion being a term that is used only for coins or bars made of 99.99% purity, then the South African Krugerrand would not make the cut since it is made with 91.5% pure gold. Krugerrands are probably the world’s oldest and most popular gold bullion coins. The silver Krugerrand is a new edition to the South African minting catalogue. They were only produced for the first time in 2018. Their popularity is tied to the popularity of the good old gold Krugerrand coin.

You can never go wrong when you invest in these and other coins like the American Eagle, the Mexican Libertad, the Austalian Kangaroo, the Austrian Philharmonic, the silver Britannia or the Canadian silver Maple Leaf.