In part one of this article-blog we began looking at the differences between gold coins, gold bars, gold bullion, old gold coins and rare gold coins, and how these differences can determine the best way how to invest in gold coins, an this part of the article-blog will clarify the differences between today’s gold product options. Part three of this article-blog will discuss what a fiat currency is, and how gold coins, old gold coins, and rare gold coins function in the monetary systems currently in use.

Gold Coins Vs. Gold Bullion
Technically speaking, gold coins and gold bullion are not the same, though to the novice eye or beginning buyer one can easily be confused for the other. Gold bullion can be struck in the shape of a coin or bar, and these products are produced by a mint that has no affiliation with any government. If a gold bar is poured from molten gold, rather than formed into a “blank” and then struck with a design under a press, then it is called an “ingot”. In order for a gold product to be called a “coin”, it must be produced by a government mint. Governments will assign a value to this coin, mark it with their symbols, and apply the country’s name to it, and generally guarantee the coin’s weight and purity. The purity of a gold coin can vary widely, but gold bullion is usually very pure, usually 99% gold or better. Gold bullion that is shaped in the form of a coin is technically called a “round”, calling a gold bullion product a coin is technically wrong.

More Differences Between Gold Coins And Gold Bullion
Gold coins, all of which are government issued, tend to be very ornate in appearance. Governments do this in order to add prestige to their product, but also to thwart counterfeiters. The American Gold Eagle coins, for example, are quite ornate and very difficult to copy, and the presses that produce them are quite rare, expensive, and they generate tremendous amounts of pressure required to produce the very intricate designs that the U.S. Mints develop. Gold bullion rounds and bars on the other hand are produced on machines and presses that are not capable of creating product comparable to the U.S. Mints. Also, for the purpose of profitability, the private mints that produce bullion are not concerned with expending funds on design and production, as this would reduce their profitability and drive up the price of their product, which must remain competitive with other bullion products. In general, private mints try to produce a visually pleasing product and then pay to advertise it to the public in order to generate a trusted product, as gold bullion and trust must go hand in hand. Remember, a less ornate coin is easier to counterfeit, and the last thing a private mint wants is to be associated or worse yet become synonymous with false product. Part three of this article-blog will delve into how to invest in gold is available here.