Why do some gold or silver coins trade as bullion and some as collectibles?
Historically, there were many gold and silver coins that circulated as spending money, such as the USA $5, $10, and $20 coins, the Newfoundland $2 coins, the France 20 Francs, the German 20 Marks, and so forth. Recently, many of the world’s mints have created special coins for collectors out of precious metals, such as the Canadian $100 gold coin issues. Although there is precious metal in these coins, they are not pure. They are valued for their design or their rarity rather than for their precious metal content. True bullion coins are minted with designs but are traded primarily for their gold content, such as the USA Gold Eagle and Buffalo, the Canadian Maple Leaf, the South African Krugerrand, the Chinese Panda, and so forth. Q: What is the difference between recognized and unrecognized bullion bars? A: A recognized bar is one that was minted by a major refinery that is very well known and may have international locations or presence, such as Johnsen-Matthey, Engelhard, Credit Suis
