A coin and a ‘round’.
If you are new to bullion or coin collecting, then you might see different terms to describe certain bullion products.
The most common term used is “Round” or “Coin”.
At first glance these bullion products might look the same and even have some similar features, but they are entirely different for a few key reasons.
Legal Tender Coins.
A legal tender coin has a face value engraved on it, and is classified as coinage in one or more countries.
The Silver Maple Leaf coin has a face value of $5 for example, however, the silver bullion content means it has intrinsic value much higher than its face value.
There are strict rules applied to the minting of all legal tender, and they’re exempt from certain taxes in many countries.
In the UK, the British Britannia coin is classed as legal tender and is, therefore, exempt from Capital Gains Tax in the UK.
Legal tender is produced by official mints, and backed by the government.
A ‘Round’ is not legal tender.
A round has no face value.
A round is not legal tender, and is not produced by an official mint backed by a government.
There are many good quality rounds, often depicting images of pop culture, making them ideal for various collectors and fanatics.
However, these rounds are produced by companies that do not need to go through the same legal protocols to produce them.
Is there a difference in quality?
Of course there are many high quality rounds made by reputable companies, however, in theory anyone can produce a gold or silver ‘round’, meaning the quality of each product is not consistent.
Legal tender coins go through a much longer, tightly regulated process, whereby the end product is more or less guaranteed to be of a high standard, genuine and is usually more desirable for investors and collectors alike.
Royal Mints.
The British Royal Mint for example, is the world’s oldest mint, established over 1,100 years ago.
The Royal Mint’s most famous and iconic bullion coins are the 1oz Gold Britannia, the Gold Sovereign and 1oz Silver Britannia.
Minted by The Royal Mint since 1987, the British Britannia contains one troy ounce of gold and has a face value of £100.
From 2013 the gold coins have been struck in 24-carat gold.
The Gold Sovereign has been produced by the Royal Mint in its modern form since 1817. The Gold Sovereign is one of the most recognisable coins in the world, struck in traditional 22-carat gold.
The Queen’s Beasts series were released in 2016 available in 1oz coin 99.99% pure gold and a 2oz silver coin series of 99.99% pure silver, which is Royal Mint’s highest purity silver coin to date.
The Royal Canadian Mint is another highly respected mint.
The Canadian Maple Leaf gold and silver bullion coins are extremely popular bullion coins.
The Maple Leaf design is recognised globally.
The Canadian Maple Leaf 1 Ounce Gold Coin was launched in 1979. Following that, the Canadian Maple Leaf 1 Ounce Silver Coin and Maple Leaf 1 Ounce Platinum Coins were launched in 1988.
Some exceptions.
The New Zealand Mint, produces some legal tender coins, it mints coinage for a few small Pacific nations. Some include non-traditional images such as Star Wars, and are technically legal tender in some small countries.
Conclusion.
Either way, both coins and rounds could be a way to turn a hobby into a fantastic way of preserving wealth.
Not only are many coins and rounds beautiful in appearance, some have many investment advantages.
Always make sure you buy coins and rounds from a reputable dealer.
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