One distinction every coin collector eventually learns is the difference between a proof coin and an uncirculated coin. It\u2019s often difficult to tell a proof coin from an uncirculated coin, but there are a few differences between the two concerning value and collectability.<\/p>\n\n\n\n
The difference between a proof coin and an uncirculated coin is that the proof coin is made differently at the minting stage and an uncirculated coin is produced in much higher quantities than a proof coin. Both realities affect the value of each as well as their circulation among collectors.<\/strong><\/p>\n\n\n\n The differences between a proof coin and an uncirculated coin are straightforward, until a discussion of value is brought up. That\u2019s when it becomes murkier. Read on to learn more about the differences and how they affect the availability and value of proof and uncirculated coins.<\/p>\n\n\n\n Most people think a coin is a coin is a coin<\/strong>. They think that a quarter is the same, from year to year, with occasional special imprints (like their state\u2019s quarters), but even those are all the same within the same year. That is not the case.<\/p>\n\n\n\n The reality is<\/strong> that there are different types of coins<\/strong> that are minted differently from one another but have specific purposes. At the very least, the minting process produces varying finishes from coin type to coin type based on the type of strike that is used.<\/p>\n\n\n\n Each type of minting has different meanings to dealers and collectors<\/strong>. Some coins are worth more from the beginning because of how they are minted. Others are not worth less than the face-value of the coin, but mass produced and thus hold and grow value much more slowly.<\/p>\n\n\n\n When the average person uses the word \u201cuncirculated,\u201d they are likely referring to one of these possibilities<\/strong>:<\/p>\n\n\n\n From a coin collector or dealer\u2019s perspective the word uncirculated can mean one of three things<\/strong>:<\/p>\n\n\n\n As you can see, the two sets of definitions have similarities<\/strong>, but are also profoundly different. The key difference is the intent of the coins and the reference to the minting process.<\/p>\n\n\n\n For this article, the most appropriate definition is the third bullet point <\/strong>from the collector or dealer\u2019s perspective. That is the minting process that signifies an uncirculated coin.<\/p>\n\n\n\n To understand the difference between<\/strong> a proof coin and an uncirculated coin, it pays to know two additional definitions that help differentiate a proof from an uncirculated coin. Those definitions are \u201cbullion\u201d and \u201cgeneral circulation.\u201d<\/p>\n\n\n\n Bullion means a quantity of precious metals<\/strong> that are in bulk form. The official definition is that bullion is a non-ferrous metal that has been refined as pure as possible. The two metals most often sold in bullion, for minting coins and other purposes, are gold and silver.<\/p>\n\n\n\n The word bullion is derived from the French<\/strong>, and before that, the Anglo-Normans used it, and it refers to \u201cboiling.\u201d That refers to the process of melting metals to extract impurities to create the purest metal possible.<\/p>\n\n\n\n From a coin collecting perspective, bullion simply means the purest metals<\/strong> on the market that meet the quality threshold established by the US government for minted coins. Think of it as the precious metal equivalent to \u201cbuying in bulk.\u201d The key difference between the two is that when a shopper buys in bulk, they usually get a discount!<\/p>\n\n\n\n With precious metals<\/strong>, the price stays the same in terms of the weight of the purchase at the time of sale. There is no discount for buying more. In fact, the value of a bullion purchase can rise and fall depending on market influences.<\/p>\n\n\n\n Precious metals are bought and sold based on weight and the price per weight<\/strong>. This fluctuates constantly, based on general market prices. General market prices can be influenced by several things. Here are a few:<\/p>\n\n\n\n At its core, each of these factors create a supply and demand influence<\/strong> where the more unstable the dollar and both economies are, the greater the demand by consumers for a stable investment. Gold and silver are considered stable investments because of their rarity and have been for just about all of human history.<\/p>\n\n\n\n For production, purchasing bullion in bulk<\/strong> makes sense because of the amount of coin production the US government engages in each year. The alternative would be to order bullion as it was needed, which could mean the prices for gold and\/or silver would skyrocket.<\/p>\n\n\n\n Bullion allows the government to purchase precious metals in bulk at lower prices<\/strong> as a hedge against rising precious metal prices in the future.<\/p>\n\n\n\n The US Mint produces \u201cbullion coins,\u201d which are valued by the \u201cweight of the precious metal<\/strong>.\u201d That price fluctuates. Because the price is transparent, however, bullion coins are easy to price and purchase. They are great for new coin collectors.<\/p>\n\n\n\n Bullion coins are struck<\/strong> in the minting process only once. That means the coin\u2019s design is pressed into the metal one time. Other types of coins (like proof coins) are struck multiple times. Additionally, no special effort is made to buff or polish a bullion coin and they are not usually sold in plastic sleeves.<\/p>\n\n\n\nA Primer On Coins<\/strong><\/h2>\n\n\n\n
General Definitions<\/h3>\n\n\n\n
The Uncirculated Definition That Fits Here<\/h3>\n\n\n\n
Bullion Coins<\/strong><\/h2>\n\n\n\n
Origin Of The Word<\/h3>\n\n\n\n
Fluctuating Pricing<\/h3>\n\n\n\n
Bullion Coins<\/h3>\n\n\n\n