Bullion is investment grade precious metal offered for sale to
investors, most commonly in the form of legal tender coins and bars. The value of bullion is determined by the prevailing ‘spot price’ of the metal, plus the manufacturer’s mark up. As investors, you are naturally interested in buying bullion as close to ‘spot’ as possible. The
cost of pouring a cast bar is lower than making a coin, which involves a
more complex process of die making and minting. For this reason, many
small investors are content with cast bars from a reputable supplier
like The Perth Mint.
While bars are cheaper to fabricate than coins, large coins generally
cost less to make than small ones. Thus, the manufacturer’s premium as a
percentage of overall cost should be lower on large coins. While
many experienced bullion investors own small coins for flexibility,
they’re also interested in the cost advantage of larger coins. The
forthcoming 2013 Australian Koala is perfect for investors building
such a mixed-size portfolio. As well as the popular 1oz and 1/2oz coins,
it includes larger 1 kilo and 10oz varieties.
Other investors, however, prefer bullion coins. Owning bullion coins
offers several clear benefits, including the fact that they are:
• issued (and therefore guaranteed) by Governments.
• highly divisible – our regular bullion coins range from 1/20oz for gold and 1/2oz for silver.
• portray detailed designs for easy identification.
• are thin, making them extremely difficult to fake around a base metal core.
The kilo coin is especially interesting because it’s the first large
silver bullion coin struck on our special Grabener 1,000 tonne coin press, a technologically advanced machine that’s helping us reduce production costs even further.
We
believe that as a result of installing this press, the 2013 kilo Koala
offers the lowest manufacturing premium on a per ounce basis of any
99.9% pure silver bullion coin in the world.
The Perth Mint bullion website
presents options to buy bars and coins, in both silver and gold. The
2013 Australian Koala, which will be available from 5 November, offers
the benefits of investing in a coin at our lowest possible premium over
minted silver.