Whether you’re in South Africa, Asia, Europe, or the Americas, legal tender silver bullion coins are renowned and sought after. Their worldwide recognition often means that they fetch a higher premium compared to silver bars and rounds in secondary markets. Therefore, even if you spend slightly more upfront on coins, you’re likely to recoup this when selling.
Gold and Silver Legal Tender Coins Vs Bars Vs Rounds
Gold and Silver Legal Tender Coins
Legal tender silver bullion coins are coins that have been minted by government mints. They have legal tender status and their value is a function of their size, purity, the prevailing spot silver price and the Rand/Dollar exchange rate. Their value is not derived from the legal tender face value which is far less than the actual value. They combine the intrinsic value of their metal content with the symbolic value of their designs and the authority of the issuing government. Whether you’re in Africa, Asia, Europe, or the Americas, legal tender silver bullion coins are renowned and sought after. Legal tender coins are widely recognisable, making resale easier. They are easier to verify due to their standardised specifications, making them easier to sell.
Gold and Silver Legal Tender Coins – Pros
- Government Guaranteed: The respective government mints guarantee the weight and purity of every silver bullion legal tender coin. This ensures that you’re purchasing a genuine product whose specifications are exact. The size, weight, fineness, and even the design on the coin serve as a certificate of authenticity. This level of trust is invaluable to many investors.
- Higher Resale Value: Legal tender coins generally attract higher premiums over their melt value in the secondary market. Their worldwide recognition often means that they fetch a higher premium compared to silver bars and rounds in secondary markets. Therefore, even if you spend slightly more upfront on coins, you’re likely to recoup this when selling.
- Versatility in Trading Scenarios: In catastrophic economic conditions, such as the collapse of fiat currency, silver bullion coins are a more tangible trading asset. In emergency situations, their recognizability and backing by government authority make them a preferred medium of exchange.
Gold and Silver Legal Tender Coins – Cons
- Cost: Legal tender coins may carry a higher premium over rounds and bars due to their legal tender status and government backing.
- Availability: Some popular coins may be harder to obtain during times of high demand. Dealers may also increase the premiums they attach to the spot price of bullion coins during times of increased demand.
Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants, but debt is the money of slaves.
– Norm Franz
Gold and Silver Rounds
Private institutions have minted these coin-like objects. Unlike legal tender coins, they don’t bear a face value or governmental backing for these rounds. Their worth arises from their size, purity, the current silver spot price, and the prevailing Rand/$ exchange rate.
Those who cannot remember the past are condemned to repeat it. Without gold, we are destined to repeat historical debt catastrophes.
– Mike Maloney
Gold and Silver Rounds – Pros
- Variety: Since private institutions mint them, there is frequently a wider selection of designs available.
- Affordability: Generally, rounds may be less expensive than their legal tender counterparts due to the lack of face value and government backing.
Gold and Silver Rounds – Cons
- No Legal Tender Status: Rounds are not considered currency, making them potentially less desirable to some investors.
- Lower Resale Value: Rounds might command lower resale premiums than legal tender coins.
- Less Recognition: Not as widely recognised as government-minted items, making verification harder.
Gold and Silver Bars
Bars are a classic form of investment. They are straightforward, with value directly tied to their weight and purity. For those who prioritise the sheer weight of precious metals in their portfolio, bars are a good option. Bars are typically products of private mints and like rounds, they lack legal tender status. Their valuation is influenced by their size, purity, spot price of silver or gold, and the existing Rand/$ currency exchange rate.
Owning gold is not about making a speculative profit, but about preserving the value of what you’ve already earned.
– Peter Schiff
Gold and Silver Bars – Pros
- Value Density: Bars, especially larger ones, offer a lot of value in a relatively compact form.
- Cost Efficiency: Per unit of weight, bars can often be the most cost-effective way to invest in physical precious metals.
- Wide Range: Bars are available in a broad range of sizes, from small 1 gramme bars to large 1 kilo or even 1000-ounce bars.
Gold and Silver Bars – Cons
- Liquidity: Larger bars can be harder to sell in full. Investors might need to sell larger bars to a limited set of buyers or melt them down into smaller weights.
- Verification: Especially for larger bars, verification can be more challenging due to concerns about potential forgery or interior tampering.
Important Points to Concider When Investing in Bars:
- Branding: Always opt for bars from reputable mints or refineries. Renowned brands include the Royal Canadian Mint, Perth Mint, and PAMP Suisse, among others.
- Assays: Many premium bars come with an assay, a certificate of authenticity verifying the bar’s weight and purity.
- Serial Numbers: Some bars have unique serial numbers, providing an extra layer of security and authenticity.
- Price: Precious metal prices fluctuate based on global market conditions. Ensure you’re getting a competitive rate based on the current market price.
Rand Refinery
African Bullion is a Rand Refinery contracted re-seller of the South African gold and silver Krugerrand.
South African Mint
African Bullion is an authorised dealer with the South African Mint.
Austrian Mint
African Bullion is an authorised dealer with the South African Mint.
