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Bullion: what it is, and what it isn't
Bullion is precious metal in coin, bar or round form whose price is set by weight and fineness rather than rarity — which is precisely why it can be compared between dealers, and why collectible coins cannot.
What people ask us about bullion
- ·what bullion actually means
- ·difference between a coin, a round and a bar
- ·what .999 and .9999 mean
- ·how to tell if a bar is real
- ·whether numismatic coins are a good investment
Three forms, one pricing logic
A bullion coin is struck by a government mint and carries a face value and a legal weight and fineness. A round looks like a coin but is struck privately, with no face value and no sovereign guarantee. A bar is a cast or minted rectangle, usually from a refiner, and comes in the widest range of sizes. All three are priced the same way: metal content plus a premium.
The differences show up on the way out, not the way in. Sovereign coins are the easiest to sell to the widest audience. Private rounds are cheaper to buy and usually fetch a slightly thinner bid. Large bars are the cheapest per ounce and the least divisible. None of that is a quality judgment about the metal.
Weight and purity, precisely
Bullion is weighed in troy ounces — about 31.10 grams, roughly ten percent heavier than the ounce most people picture. Fineness is stated in parts per thousand: .999 is three-nines fine, .9999 is four-nines. Higher fineness is not automatically better for an owner; it matters mainly because eligibility rules and wholesale standards are written in fineness terms.
That is where alloy confuses people. A 22-karat coin can contain exactly one troy ounce of pure metal and simply weigh more overall, because copper and silver were added for wear resistance. Read the stated fine metal content, not the gross weight.
Authentication and provenance
At wholesale, trust runs through accredited refiners and Good Delivery standards — bar weight ranges, minimum fineness, refiner marks and serial numbers. At retail, trust runs through recognizable sovereign coins, sealed assay cards on small bars, and buying from a dealer who will buy the product back. Those are the practical authentication tools available to an ordinary buyer.
Handling matters too. Breaking a bar out of its assay packaging can cost you a little on resale, and cleaning a coin can cost you a lot. If you would not do it to a sealed piece of electronics, do not do it to a sealed bar.
What is not bullion
Graded rarities, proof sets sold at multiples of melt, "exclusive government-issue" coins with invented mintages, and anything whose sales pitch centers on scarcity are collectibles. They can be legitimate collectibles — the coin market is real — but they are priced by a different market, they are illiquid at retail, and they are the category federal law excludes from retirement accounts.
This is the single most expensive confusion in our industry. A buyer who wanted metal exposure ends up holding a premium that only survives if another retail buyer pays the same markup. We do not sell that, and we will tell you plainly when someone else has.
The facts, with their sources
Retirement accounts may hold bullion under a narrow exception to the collectibles rule, and only while a trustee holds it.1
26 U.S.C. § 408(m) is the line between bullion and collectibles for IRA purposes, and it covers custody as well as content.
London Good Delivery sets the wholesale bar standard: defined weight ranges, minimum fineness and accredited-refiner marks.2
It is the reference point retail products are measured against, and the reason bar serial numbers and refiner marks matter.
U.S. bullion coin programs are defined in statute, including weight, fineness and design.3
31 U.S.C. § 5112 is why an American Eagle's content is legally fixed rather than a claim made by whoever is selling it.
Exchange contracts define the fineness and unit that retail pricing derives from — 100 oz for gold, 5,000 oz for silver.4,5
Those specifications are the origin of the per-ounce reference prices quoted across the retail market.
Terms, defined
- Round
- A privately minted coin-shaped bullion piece with no face value and no sovereign guarantee.
- Assay card
- Sealed packaging certifying a small bar's weight and fineness, often with a serial number.
- Good Delivery
- The London wholesale standard for acceptable bar weight, fineness and refiner accreditation.
- Numismatic
- Valued for rarity, condition or history rather than metal content.
- Melt value
- The value of an item's metal content alone, ignoring any collectible premium.
Coin, round, bar
| Form | Who makes it | Trade-off |
|---|---|---|
| Sovereign coin | A government mint, under statute | Highest recognition and easiest resale; highest premium per ounce |
| Private round | A private mint | Lower premium than a coin; slightly thinner bid on resale |
| Bar | A refiner | Lowest premium per ounce; least divisible, and large bars must be sold whole |
What can go wrong
Buying collectibles believing they are bullion
Collector premiums are set by the retail collectibles market, not by metal content, and may not be repeated on resale.
Damaged packaging or cleaned coins
Breaking an assay seal or polishing a coin reduces what a dealer will pay, sometimes materially.
Thin-market metals
Platinum and palladium trade in smaller markets than gold and silver, so spreads are wider and quotes move more.
Counterfeits
They exist. Recognizable sovereign coins, sealed assay bars and a dealer with a standing buy-back are the practical defenses.
What the industry gets wrong
"Higher purity means a better investment."
Fineness matters for eligibility and wholesale standards. Between .999 and .9999, an owner's outcome is driven by premium and spread, not the extra nine.
"Rounds are fake coins."
Rounds are legitimate bullion; they simply carry no face value or sovereign guarantee, which is why they cost slightly less.
"A troy ounce is just an ounce."
A troy ounce is about 10% heavier. Every bullion quote you see is per troy ounce.
Questions people actually ask
What does bullion mean?
Precious metal — usually gold, silver, platinum or palladium — in coin, bar or round form, priced on its weight and fineness rather than on rarity or condition. That pricing logic is what makes bullion comparable between dealers.
What is the difference between a coin and a round?
A coin is struck by a government mint with a legal face value, weight and fineness. A round is privately minted with no face value. Both are bullion; the coin costs a bit more and is easier to sell to a wider audience.
Is a numismatic coin a good investment?
It is a different investment. Its value depends on the collectibles market rather than metal content, it is far less liquid at retail, and it is the category retirement accounts exclude. If someone is selling you rarity while you were shopping for metal, that mismatch is worth pausing over.
How do I know a bar is genuine?
Buy recognizable products from accredited refiners, keep assay packaging sealed, and buy from a dealer who publishes a buy-back. Refiner marks and serial numbers exist for exactly this reason.
Does .9999 gold hold its value better than .999?
No. Both are bullion and both are priced on fine metal content. What actually affects your outcome is the premium you paid and the spread you will face on the way out.
Can I hold platinum or palladium bullion?
Yes, and each has its own exchange contract and eligibility path. Be aware that both trade in thinner markets than gold and silver, so spreads are wider. We will show you those spreads before you decide.
Go deeper
Learn the vocabulary
Products
Sources
- 1. Rollovers of retirement plan and IRA distributionsInternal Revenue Service · Primary / governmentView the source
- 2. Announcement 2014-32 — Application of One-Per-Year Limit on IRA RolloversInternal Revenue Service · Primary / governmentView the source
- 3. 26 U.S.C. § 408(m) — Investment in collectibles treated as distributionsLegal Information Institute, Cornell Law School · Primary / governmentView the source
- 4. 31 U.S.C. § 5112 — Denominations, specifications, and design of coinsLegal Information Institute, Cornell Law School · Primary / governmentView the source
- 5. Gold futures contract specifications (COMEX)CME Group · Industry / authoritativeView the source
- 6. Silver futures contract specifications (COMEX)CME Group · Industry / authoritativeView the source
- 7. Platinum futures contract specifications (NYMEX)CME Group · Industry / authoritativeView the source
- 8. Palladium futures contract specifications (NYMEX)CME Group · Industry / authoritativeView the source
- 9. Good DeliveryLondon Bullion Market Association · Industry / authoritativeView the source
Written by Travis Bugli, Chief Executive Officer and licensed agent, Capstone Metals. Reviewed by Mark Bugli, Senior Advisory Partner, licensed since 1970. Last reviewed 2026-09-02. This page describes rules and market mechanics; it is not tax or investment advice for your situation.
The premium is stated in writing, every time
Every listing is priced against live spot with the premium disclosed before you commit, and we quote a live buy-back on anything we sold you. A just weight is not a courtesy; it is a command.
“A false balance is abomination to the Lord: but a just weight is his delight.”
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Book of Proverbs · Chapter 11 · Verse 1
Proverbs is a father's practical instruction to a son entering adult responsibility: wages, lending, collateral, honest scales, counsel, and the long horizon of an inheritance.
Talk bullion with a licensed agent
Call (800) 200-9553 and we will quote the metal and the premium separately, and tell you the buy-back before you buy.