I heard about this on the Marketplace Morning Report this morning, and I’m interested.
The U.S. Mint will produce the first pure (.9999) gold coin for investors and collectors. The face value of the coin will be $50 and it will consist of 24-karat gold.
The “bullion” version of the coin will be for created investors. The Mint will only sell these coins to authorized dealers (for the market value of the gold plus a small mark-up) who will in turn sell the coins to the “secondary market” (ie., us ordinary people). If you are interested, you can find the authorized gold dealers here and the coins go on sale tomorrow, June 22.
The Mint will produce only 200,000 “proof” coins, and they will also be available beginning June 22 from the Mint’s website for $800 each. So what’s the difference between “proof” (for collectors) and “bullion” (for investors)?
Collectible coins are issued in premium quality (Proofs are most desirable) by government mints in limited quantities, and sold at premium prices… On the other hand, bullion coins are issued in large numbers by government mints in Uncirculated quality, and sold at small premiums over the gold value.
Updated February 7, 2012 and originally published June 21, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.