At Cole Metals Group, we’re often approached by clients who want to diversify their portfolios with physical gold or silver “bullion.” But when someone says bullion, it could mean bars, rounds, or standard U.S. Mint products such as American Gold or Silver Eagles. The confusion is understandable — the industry is full of jargon, and some dealers use that confusion to their advantage.

That’s why it’s important to set the record straight: what bullion really is, how it differs from numismatic or proprietary coins, and why that difference matters to you as an investor.

What Is Bullion?

“Bullion” refers to precious metals valued for their weight and purity, not for rarity or collectability. Whether in the form of a bar, round, or government-issued coin, bullion pricing is tied directly to the spot price of gold, silver, platinum, or palladium — plus the unavoidable costs of refining, minting, and distribution.

In other words, there’s no such thing as buying gold or silver “at spot.” The U.S. Mint is required by law to cover its costs on programs like the Gold Eagle. Private refiners such as PAMP Suisse or Johnson Matthey also must cover their costs and make a profit. That’s why every bar, round, or bullion coin carries a modest premium above spot.

The key takeaway: with bullion, you can clearly see and compare premiums. Pricing is competitive, transparent, and disciplined by the market.

What Are Numismatic and Semi-Numismatic Coins?

Numismatic and semi-numismatic coins are different. Their value isn’t based primarily on metal content but on subjective factors such as rarity, mintage, condition, and collector interest. Examples include early U.S. gold, pre-1933 pieces, or high-grade coins certified by PCGS or NGC.

The problem for investors is transparency. With bullion, you can look up live market prices and compare across multiple dealers. With numismatics, you can’t. The “premium” is whatever the dealer says it is — and too often, that premium is enormous.

We regularly encounter new clients who were sold numismatic or semi-numismatic coins at prices that are difficult to justify — sometimes 30%, 40%, even 50% above the underlying metal value. And when they try to sell, they’re shocked at how little demand exists outside the original dealer’s pitch.

The Trap of Proprietary and Specialty Coins

If numismatics are difficult to price, proprietary coins are nearly impossible.

Some firms contract with a private mint to produce coins exclusive to their brand. These “proprietary” or “specialty” coins are not traded in the open market. You won’t find live quotes online, and you won’t see other dealers competing for them. That gives the issuing dealer a blank check to set whatever price they like.

When it’s time to liquidate, investors discover the problem: no one has heard of these coins, no one is demanding them, and the dealer who created them often offers little more than melt value — sometimes less. In effect, the investor paid a huge markup going in, only to be treated as if they were selling scrap metal going out.

This is not an investment. It’s marketing. And it’s one of the most common traps we see investors fall into when they don’t know the difference between bullion and numismatics.

When Numismatic Coins Make Sense

There are legitimate uses for numismatic or commemorative coins. A Civil War–era $20 Liberty, for example, carries historical value that a collector may prize. A dated proof coin may make a meaningful retirement or graduation gift. In those cases, the story and symbolism matter more than the metal.

But those are collector purchases, not investment purchases. And they should be approached with that mindset. For investors who want a simple, reliable hedge against inflation, currency debasement, or market volatility, numismatics and proprietary products are more risk than reward.

Why Bullion Wins for Investors

If your goal is to own physical gold or silver as a dollar hedge, bullion is the clear choice.

  • Transparent Pricing: Bullion coins and bars are quoted everywhere — online, in newspapers, across multiple dealers. You’ll always know if the price you’re paying is competitive.
  • Liquidity: Widely traded products like American Gold Eagles or Canadian Maple Leafs are recognized worldwide, making them easy to sell anywhere, anytime.
  • Fairness: With bullion, the premium above spot is modest and easy to understand. With numismatics or proprietary coins, the markup is often hidden and excessive.

At Cole Metals Group, we believe bullion is the most straightforward, cost-effective, and investor-friendly way to diversify with precious metals. It’s about owning gold and silver for what they are — real money — not for hype, gimmicks, or collector stories.