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Does “buying bullion” mean the same thing as buying gold coins or bars?
Pretty much. Buying bullion simply means you are buying a coin, bar or ingot of gold or silver that is valued by its mass and purity, not by its face value as money.
A regular coin in your pocket has a face value, and that it what it is worth. You can exchange four quarters for a dollar. But if you melt your quarters down, the puddle of metal you are left with isn’t worth a dollar.
In the case of precious metals like gold and silver, the metal is valued by its weight and not by any face value. For instance, a one-ounce Canadian Gold Maple Leaf coin has a face value of $50. That’s what it says on the coin. But you would be very foolish to exchange that coin for a $50 bill. Its value is closer to US$930 (May 15, 2009).
And if you melt that gold coin, the puddle of gold will still be worth the same amount. (Not recommended as you will lose the weight and purity markings on the coin.)
Certain gold coins and all bars and ingots of pure gold or silver are bullion. They are all marked with their weight and purity.
That’s what buying bullion means.
This distinction becomes important when buying gold coins. If you want to buy coins for their value in pure gold, then you look for bullion coins. (See list and links below.)
If you are interested in buying collectible coins without particular regard to their value in gold, that’s a whole different story.
Gold bullion coins...
