2025 Government Bullion

Learn More About 2025 Government Bullion

What is government bullion?

Government bullion refers to precious metals in the form of coins, bars, or rounds that are produced and issued by a government mint.

These coins and bars are minted with pure gold and silver in industry-standard weights and are guaranteed for weight and purity by the issuing government.

Unlike numismatic coins, which have collectible value due to rarity or historical significance, bullion coins derive their worth from the metal content, often referred to as intrinsic value.

Which governments issue bullion coins?

Many governments around the world issue bullion coins, including:

• United States: American Gold Eagle, American Silver Eagle, American Buffalo.
• Canada: Canadian Maple Leaf (Gold, Silver, Platinum, Palladium).
• United Kingdom: British Gold Sovereign, Gold and Silver Britannia.
• Australia: Australian Kangaroo, Kookaburra, and Koala (Gold and Silver).
• China: Chinese Panda (Gold and Silver).
• South Africa: Krugerrand (Gold).
• Austria: Vienna Philharmonic (Gold and Silver).
• Mexico: Mexican Libertad (Gold and Silver).

These coins are recognized worldwide and have standard weights and purities, with government backing on their authenticity.

How easy is it to sell government bullion?

Government bullion is easy to sell due to its wide recognition, standardized weight and purity, and government-backed authenticity.

Government-issued bullion coins are highly liquid, and you can quickly turn them into cash through various businesses that broker precious metals.

• Precious Metals Dealers: Most reputable dealers will buy back government bullion at market buy-back prices, typically a few percent points above the spot market price.
• Online Platforms: Many bullion buyers and sellers transact through online marketplaces like eBay or specialized bullion platforms.
• Pawn Shops and Jewelry Stores: These businesses often buy bullion, though typically at a lower price compared to specialized bullion dealers.
• Banks: In some countries, banks buy and sell bullion coins.

The resale value will typically depend on the current spot price of the metal and the dealer's buy-back rate, which may include a small fee or discount from the spot price.

Why do governments issue bullion coins?

Bullion coins provide a tangible, stable store of value and a hedge against inflation and economic instability. They serve as an investment vehicle for individuals and institutions looking to preserve wealth.

Governments generate revenue by selling bullion coins at a premium over the spot market price of the metal. For example, the U.S. Mint charges wholesalers, also called Authorized Purchasers, of American Silver Eagle bullion coins a premium of $3.05 per coin, which gets passed along to retail investors.

Bullion coins can also stabilize or support national currencies while not being used in day-to-day transactions. Inflation erodes the purchasing power of the dollar. By diversifying into bullion coins like the American Eagle, investors protect their wealth with stable, government-backed, non-currency assets.

Government bullion coins are a long-term investment or savings vehicle. Holding wealth in bullion helps provide a stable foundation for other, riskier investments.

Issuing bullion coins enhances the country's prestige. Coins like the Mexican Libertad serve as a symbol of national pride.

Why is bullion considered a store of value and wealth?

Bullion has been considered a store of value for centuries. Precious metals like gold and silver have intrinsic value due to their rarity, durability, and widespread use in industry and jewelry. These metals have provided the economic foundation for centuries through their use and coins and currency.

Due to their market value, investors often use them as a hedge against inflation and as a store of wealth. Bullion coins are recognized worldwide as valuable. Their finite supply above ground means they retain value and can even appreciate as demand grows or supply diminishes.

How easy is it to sell government bullion?

Government bullion is relatively easy to sell due to its wide recognition, standardized weight and purity, and government-backed authenticity. These features make government-issued bullion coins highly liquid and easy to sell through various businesses that broker precious metals.

• Precious Metals Dealers: Most reputable dealers will buy back government bullion at close to the spot price.
• Online Platforms: Many bullion buyers and sellers transact through online marketplaces like eBay or specialized bullion platforms.
• Pawn Shops and Jewelry Stores: These businesses often buy bullion, though typically at a lower price compared to specialized bullion dealers.
• Banks: While United States banks stopped handling gold a long time ago, banks in countries like Canada, Mexico, and others buy and sell bullion coins.

The resale value will depend on the metal's current spot price and the dealer's buy-back rate, which may include a small fee or discount from the spot price.

Are government bullion coins more valuable than other forms of bullion?

In general, government-issued bullion coins are more valuable than privately minted bullion bars or rounds for a few reasons.

Government bullion coins, such as American Eagles or Canadian Maple Leafs, are widely recognized and trusted for their purity and authenticity, making them highly liquid and easy to sell.

Government bullion often carries a slightly higher premium (cost above the spot price) due to the guarantee and security of being issued by a government mint and the added collectibility of some coin designs.

Most government bullion coins have a nominal face value and are legal tender in their country of issuance, though the metal content is typically worth much more than the face value.

Some government bullion coins may become collectible over time, especially if they are issued in limited numbers or feature special designs. This could potentially increase their value beyond just the metal content.

However, when it comes to pure investment in precious metals, both government-issued bullion coins and private bullion can serve the same purpose—protecting wealth through the metal's intrinsic value.

Government bullion coins may offer more liquidity and trust, but other forms of bullion, such as bars, may be more cost-effective for more significant investments due to lower premiums.