Bleyer sells bullion in uncirculated, proof and best-value conditions. We handle everything with the utmost care and delicacy. This article looks at the different levels of quality in bullion coins and bars and how this quality affects their retail value.
Types of Bullion Quality
You can buy bullion from Bleyer in the following conditions:
- Uncirculated coins are produced in large quantities by mints all around the world. Most of the coins that Bleyer sells are in uncirculated condition. The design is usually struck once onto the coin in production. Uncirculated bullion coins have had no previous owners and are an excellent choice for investors looking to add freshly produced physical metals to their investment portfolios.
- Proof coins are produced to the finest quality finish. These coins are struck up to six times using highly polished dies during the minting process. The design is sharp and the details are highly defined. Proof coins take a great deal of time to produce, where sometimes it can take 1 hour to mint just 40-50 coins. There is a lower mintage of them available and therefore these are sold at a higher premium. They are often highly sought after by collectors looking to own a coin of superior quality and rarity.
- Best value coins are Bleyer’s way of saying that the coin has been sold to us through a 3rd party and have had one or more owners in the past. The condition of these can vary depending on how they’ve been handled but the precious metal content is the same as uncirculated bullion. This option is for investors looking to add intrinsic metal value to their portfolios for the lowest price.
Does Bullion Quality Affect Retail Value?
All bullion coins are based on the market value of each precious metal. The spot price is the current market asking price for a particular commodity at a particular point in time. Gold or silver prices react based on what’s happening in the economy and are constantly changing.
Uncirculated bullion is commonly available and produced in large quantities with a rougher finish. The Royal Mint produces uncirculated coins, and it is common that during the production, storage and distribution, that some of these coins can obtain milk spots, handling marks, scuffs, or other minor imperfections that can be detected under high scrutiny.
Exceptional quality coins, such as proof coins, can be certified by a grading service. The primary reason for grading a coin is to determine how well the coin was struck initially, the coin’s level of preservation, and how much wear and damage the coin has sustained. Coins are graded using the Sheldon grading scale from 1 to 70 (with 1 being the worst and 70 being the best). The quality of coins that get graded are far superior to those of general mass-produced uncirculated coins.
If you’re not buying proof quality bullion, there’s a possibility that some of these blemishes may be present on your coin. But don’t worry, unless your selling to a collector or numismatic specialist, the quality won’t affect the resale value of the coin. The retail value of any bullion is generally affected by a number of other factors.
What affects bullion retail value?
When you sell bullion to Bleyer (or any other bullion dealer) the price is reached by using the ‘bid/sell’ price as a starting point. We then look at what we can resell that item back to a refiner and the cost of getting it to them, in case we can’t resell it. Thirdly, we consider how desirable the item is, and its condition.
What to Expect
When precious metal owners come to sell their bullion coins, small marks on the coin will not affect its price. The price is mostly down to the precious metal content of the coin, the current spot price of that metal, the bid/sell price and the premium the bullion dealer is willing to offer at that time.
Capsules & Protective Casing
Capsules, cases and packaging are a great defence for protecting coins and bars. Bleyer recommends this option if you’re wanting to protect your bullion from damage, as larger signs of damage can be more detrimental to the sell price, depending on who you’re speaking to.
Bleyer takes great care when handling all bullion and quality controls everything that is sent out to ensure that every customer is delighted with what they receive. Bullion can have casing or other protective sleeves with minor scratches. Plastic is a soft material and is designed to protect the contents of what’s inside. We’ll replace any capsules that arrive cracked, however, replacing every case or capsule that has a slight mark or scratch just isn’t feasible for us.
Please let one of Bleyer’s team know if what you’ve received isn’t to your satisfaction. Take pictures of anything that arrives damaged and send them to firstname.lastname@example.org and we’ll be happy to help in any way we can. If you’d like to talk with someone on the phone, you can call our office during office hours on 01769 618618.