Which should I buy ... Bullion or Numismatics?   We probably field this question 200 times per day.  When converting to Gold and Silver, Americans want to know which direction is best.  While there is no absolute answer, we'll try and give you some of the pluses and minuses for each and then let you decide.

Some like Bullion because it trades close to the spot price of Gold.  Since Bullion coins are not encased and graded in acrylic there is no premium for rarity.   While they sell a bit higher than the spot price of Gold, you aren't usually paying a premium for the coin itself.

Others prefer Numismatics because you not only get the value of the Gold, but also the rarity of the coin.  Numismatics are usually encased in arcrylic and graded by companies like NGC or PCGS.  One of the great features of a Numismatic coin is that it comes with its own specific serial number.  If the coin is ever stolen, it can be tracked down by law inforcement.  Bullion has no such security feature as it is just a raw piece of Gold that could be melted down.

As far as return on investment (ROI), Bullion seemed to outperform Numismatics in the early part of this century.  However, there has been a major sea change, and over the past 18 months Numismatics have clearly broken away from Bullion and have returned double digit gains. Some collectors have been stunned at the selling price of choice Numismatics in recent months.

A negative aspect to Bullion is that in 1933 President Roosevelt made owning that form of gold illegal.  All Gold Bullion had to be returned to the Federal Government for around $20 an ounce.   Once the Gold was returned to the government, the price quickly jumped to around $35 an ounce and American metal owners were furious that they had lost out on those gains.

Meanwhile, Numismatics were exempt from these restrictions as President Roosevelt felt (correctly) that they had a value beyond that of the metal itself. In short, it would be very difficult for the government to price each coin and reimburse each individual owner.  In short time these coins skyrocketed in value and Numismatic investors had once again outsmarted their Bullion brothers.

For more information feel free to call Scottsdale Gold and Silver Exchange at 1-888-950-GOLD (4653)