Rounds and coins might look similar to the new bullion investor, but you should know some key differences before investing. Ready to become an expert? Read on to learn more about these popular bullion products.
So, What is the Difference?
The main difference between rounds and coins lies in one key factor: the government’s involvement.
A sovereign government mints (creates) coins. They are legal tender and have a minimum face value with melt value.
Private mints, on the other hand, mint (create) rounds. They are not legal tender, have no face value, and typically have one melt value.
Design of rounds and coins
Coins are round in shape and feature a design that changes from year to year. Examples of popular coins include American Gold Eagles and Canadian Silver Maple Leafs.
Rounds come in unique designs, as well. They are unique designs created by private mints or created to look similar to popular coins.
Often, buyers can distinguish between a round and a coin because rounds will either have an “R” or “COPY” stamped on them, making it easy to determine if it’s a government-issued coin or a privately minted round.
Rounds may not have an issue date stamped on them as coins do.
What Are The Sizes of Rounds and Coins?
Typically, coins are minted in 4 sizes: 1/10 oz, ¼ oz, ½ oz, and 1 ounce.
Rounds come in various sizes and weights. Most importantly, no round can have the exact specifications of a coin. To prevent counterfeiting, a round can never have the same diameter, thickness, or mass as a legal tendered coin. Rounds range in sizes like 1/20 oz, 1 oz, 2 oz, 5 oz, and 10 ounces.
How is Price Determined?
The price for a bullion coin is determined by spot price as well as the coin’s weight. The coin’s price also varies depending on the coin’s availability and condition.
Rounds are typically cheaper than coins and therefore have a lower premium over spot price. A round’s market value stems from its metal content. Therefore, they tend to offer a little insulation from spot market.
Bullion Express offers a wide selection of rounds and coins. Add yours to your cart today!