Gold Rounds

One of the biggest areas of confusion in gold bullion, particularly among new buyers and investors, is what the difference is between coins and rounds. Both types of gold look the same, so what really separates them? Well, it’s actually only one simple dynamic. Gold coins are always produced by government bodies. For example, the Gold Eagle is produced by the US Mint. Now, take a commemorative 9/11 gold coin. It might look similar in quality to the American Eagle, but the truth is that it was produced by a private mint. Theoretically, provided you had the ability to melt and produce gold, you could create rounds in your basement.

Rounds only carry an added value in the bullion markets if collectors are willing to pay a premium for them. If you take your rounds into a dealer, they are not going to pay anything over spot. This is why you might see a commercial for commemorative coins, but they will be priced well over spot price. The way that mints make money is by producing rounds and other similar items, such as new bars, and then re-selling them in the aftermarket. If you pay a premium for a gold round, it should mean that your purchase was strictly for investment purposes.

For those looking solely to invest in gold, rounds are certainly a viable option, in addition to gold coins. They provide an opportunity to obtain gold right at or near spot price, which is always the ultimate goal. There is no shortage of rounds that once had an added value, but are no longer worth anything more than their raw value. If you go into a local dealer or view online bullion websites, you will likely run into an endless supply of gold rounds, created for all sorts of occasions. A round could have been made in honor of an event such as 9/11, as mentioned above, or it could be made for a sports team that just won a championship. The easiest way to look at gold rounds is to figure out whether or not they would be considered novelty items. If they are not produced by the government, the chances are that they will not carry any added value, and if they do have extra worth, it is likely to be short lived.

There is nothing “wrong” with buying gold rounds no matter what your ultimate motivations may be. They are a sound medium for collectors and investors in that they are collectible, but don’t carry excessively high prices. If you are only looking to make an investment, they will probably some of the more unique items in your portfolio. No matter how you would like to look at it, gold rounds are a valuable asset for any bullion buyer.