Generic vs Minted
Who Produces Minted Coins
United States Mint, Royal Canadian, Austrian, Australian – Perth, South African
What Major Coins are produced by Mints
American Eagles, American Buffalo, Maple Leaf, Philharmonic, Krugerrands
Are Minted Coins Legal Tender?
Yes – Coins that are produced by mints are considered legal tender. This is one of the main reasons that they have a higher premium than generic coin products.
Johnson Matthey (JM), Englehard, Pamp, Credit Suisse, NTR, Sunshine. These are just a few of the refineries around the united states and world that produce coins and bullion products.
Some Advantages of Minted vs Generic Products
Popularity – Minted products are much more popular in the market place. Customers around the world will recognize minted coins.
Re-Sale – Traditionally, coins or bars produced by mints will have a higher resale price. The initial premium for the legal tender coins creates a higher value than the generic coin. Even though they are the same troy ounces, the minted coins will return a higher value.
Packaging – Most minted products will come in a mint tube, plastic and in larger bulk purchases sealed boxes.
Some Disadvantages of Minted vs Generic Products
Cost & Premiums – All Minted coins are produced by a large manufacture mint creating extra costs for the product to be made. This is reason that the premiums for Silver American Eagles is higher than the cost for silver buffalo rounds. Each mint establishes there own premium or manufacturing cost for the coins.
Re-Sale – Minted coins on there resale value usually are in the small percentage or value above spot. The spot prices have to move the initial purchase price value above spot to create a profit on the coin or bar. Generic rounds will always be purchased at spot or +/- a very small amount around spot. At the end of the day the metal can always be melted down to the troy ounces of weight and sold for spot.
All information and views are only opinions from DBS Coins, Please give us a call at 888-327-9205 ext 101.
- Illicit DRC gold: London Bullion Market must do more to stop it September 23, 2020The London Bullion Market Association (LBMA) must do more to combat an illicit trade in gold mined in Democratic Republic of Congo (DRC), says ...
- Gold Windfall Heading for Investors With Miners Vowing Restraint September 23, 2020Even as bullion bounces around near record heights, helping lift miners' cash flow and share prices, the mood -- at least virtually -- at the Denver Gold ...
- Gold prices fall below $1900, as rise in stocks and US dollars deflates bullion demand September 23, 2020Gold on Wednesday traded below $1,900 an ounce, a psychologically important round number, as some positive momentum for stocks and a ...