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 Gold $1,662.30   $-0.30  Silver $19.08   $0.30  Platinum $870.40   $-2.80  Palladium $2,194.00   $-42.10

Bullion value simply refers to the value assigned to a particular coin primarily based on the amount of precious metals in the coin. It’s important to keep this value in mind, since it’s not unusual for coins to contain a mix of metals—and not all of them are precious metals. For this reason, it’s important to pay attention to the bullion value when exploring your options with precious metals. The experts from First National Bullion, the silver and gold dealers Carlsbad collectors trust for high-quality service and industry knowledge, explain what you need to know about bullion value.

Understand How Precious Metals Mixes Have Changed Over the Years

In coins minted prior to the mid-1960s, the actual amount of precious metals included is much higher than what’s common today. Therefore, if you buy an older coin, you’ll likely be able to get more money for it than what’s common with a newer one. The specific amount you could get for that older coin is based, in part, on design features and other characteristics. However, it’s also largely based on the current market value of the precious metal it contains.

Learn How to Calculate Bullion Value

There are three steps to take to calculate bullion value. First, convert the actual weight of your bullion, which is usually measured in grams, to troy ounces. Next, multiply this number by the percentage of the fineness of the precious metal. Finally, multiple this figure by the current spot price of your precious metal to get the bullion value.

If You’re Going for Bullion Value, Focus on Older Coins

We say this because, as stated above, older coins tend to have more actual bullion. It’s also a good idea to not just go by what’s popular and plentiful if you’ll be collecting or investing mainly for bullion value. For example, South African Krugerrands were heavily produced starting in the late 1960s and eventually accounted for all but 10 percent of the gold bullion market in the entire world. However, these coins only contain roughly one troy ounce of actual gold. The rest is primarily copper. In other words, it’s best to do your homework first to determine what’s actually worth your time and effort investment-wise.

Get Your Bullion Appraised

It’s rare for any piece of bullion to be 100 percent pure. This is often because the properties associated with certain precious metals aren’t ideal for long-lasting results. For instance, gold is extremely soft in pure form. If bars and coins made from gold were 100 percent pure, they wouldn’t hold their shape well. They would also be highly susceptible to scratches, dents, and dings. It’s a good idea to have any bullion you intend to purchase appraised to get a better idea of its true value. This is beneficial for:

• Buying sufficient insurance coverage
• Determining a fair price for what you intend to purchase
• Figuring out if you’re getting a reasonable offer if you intend to part with your solid precious metals at some point  

For information on any aspect of buying, selling, and owning precious metals, call on the experts at First National Bullion and Coin. When they’re looking for accurate information about the markets for precious metals such as gold and silver bullion, Carlsbad collectors trust our reputable dealers. We’re a boutique precious metals firm with experienced professionals, and we work hard to keep our investors informed with the most up-to-date market news. If you’re looking to add precious metals to your portfolio, call us today at (760) 253-8072.

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.

By |2022-08-30T22:20:35-07:00September 5th, 2022|Miscellaneous|0 Comments