Investor – What are the differences between bullion coins and rare or “numismatic” coins?

Bullion coins are produced in mass quantities by government mints and are legal tender in their country of origin. Bullion coins sell for a small premium over their intrinsic (or spot) metal value. Bullion coin prices move, in tandem, with the price fluctuations of the underlying commodity (i.e., gold, silver, platinum or palladium).

Rare or “numismatic” coins are collected and valued for their scarcity, individual beauty, uniqueness or historical significance. Special collectible qualities can potentially render rare coins far more valuable in the marketplace than the value of any gold or silver that they may contain.