BU vs. Proof Coins: What’s the Difference for Collectors & Investors?

 

There’s never a wrong time to get started with a coin collection. Whether you’re a new collector or looking to expand an existing collection, there are numerous options to consider. The two main ones are BU and proof coins. Below, the professionals from First National Bullion, premier Scottsdale gold coin dealers with years of experience collectors can trust, discuss the differences between these two kinds of coins.

 

Proof Coins

 

Proof coins have a long history that dates back to the early 1800s. Originally produced for archives only, proof sets are popular among collectors because of their pristine appearance and flawless designs. Proof coins are produced with high standards and strict regulations for quality. For instance, the coins are hand-fed into the blanks. These coins are also struck up to six times to ensure quality and inspected to further ensure everything is perfect. However, production is limited, which increases demand and price.

 

BU Coins

 

Brilliant Uncirculated (BU) coins are also minted to high standards, although not to the same standards as proof coins. BU issues like the Gold American Eagle BU are appealing to collectors and investors alike because they are more affordable than proof sets and the quality is still impressive. Only struck one time with regular dies, BU coins are minted just once and produced faster than proof coins. There are also more mintings of BU coins, making them more accessible than proof sets.

 

Appearance and Use

 

BU coins and proof sets have a similar appearance. The difference is that proof coins have a higher-quality finish with design features that stand out better. Proof coins also have a mirror-like background and frosted designs that improve the contrast.

 

BU coins still have an attractive appearance, although they’re meant for investment purposes rather than for collections. BU coins also have rounded edges, while proof coins have square edges due to the multiple strikings. People tend to hold on to proof coins, which are usually sold as sets. BU coins are sold individually and in tubes and are often traded or invested.

 

Affordability and Market Value

 

BU coins, as mentioned earlier, are more affordable. With market value, BU coins are often valued based on their precious metal content. Proof coins are often sold at a higher price due to the quality of the designs. Therefore, the market value for proof sets or coins is often above spot value. Collectors also tend to appreciate special sets, such as ones devoted to animals, special events, or state coins. With BU coins, prices often track metal content and market demand more so than what's common with proof coins.

 

There’s no wrong choice with BU or proof coins. Both coins are appealing visually. Just keep in mind BU coins are generally meant for investing or anyone just starting a coin collection due to their accessibility and affordability. Proof sets are more of an investment and are generally designed for serious collectors. Of course, you’re always welcome to explore both options if you prefer to have a more diversified portfolio.

 

Whether you’re a veteran collector or you’re interested in buying coins for investment purposes, you’ll find a fantastic variety of high-quality coins at First National Bullion. If they’re looking for the best place to buy silver, platinum, or gold coins, Scottsdale collectors should give us a call today to speak with one of our coin experts. 

 

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.