Bullion vs Investment Grade

Definition and Value: Bullion refers to precious metals, often in the form of coins or bars. Its value is based primarily on weight, similar to commodities like crude oil, natural gas, or wheat. 

Minted Bullion Coins: Minted bullion coins are coins made by official government mints in accordance with federal guidelines. Their face value is recognized within the original country in which they were minted, but most often, that value is surpassed by their metallic value, which restricts their use in everyday transactions. 

Rarity Over Weight: Unlike bullion, investment grade coins derive value from their scarce nature rather than their weight. The production process for these coins differs significantly from that of bullion and is highly specialized. It involves multiple rounds of striking, resulting in coins with a high level of detail and sheen. Because of this labor-intensive process, the quantity of these coins is far more limited than bullion.  

Grading and Quality: Industry authorities like NGC and PCGS issue grades that enhance the value of investment grade proof coins. The highest PF70 grade signifies unparalleled quality, a process that our bureau provides for our clients' convenience. 

The value of your Investment Grade Proof coin can also be solidified by a quality score, or grade issued by an industry authority like the Numismatic Guaranty Corporation (NGC) or Professional Coin Grading Service (PCGS). Unlike bullion, where the value is derived from market sentiments and geopolitical factors , both bullion and Proof coins can receive grades that, in turn, indicate respective quality levels. However, grading for Proof coins holds a unique significance as it helps bolster their value, making them a compelling investment option. 

NGC and PCGS rely on what is known as the Sheldon Scale when grading precious metal pieces. The Sheldon Scale, established in 1949 by William Herbert Sheldon and updated in the 1970s, denotes coin qualities via a rubric ranging from scores of one, which indicates poor quality, to 70, which indicates "perfect" quality. Only a small percentage of Proof coins ever receive the highest-level PF70 grade. 

Proof coins obtained directly from the U.S. Mint are not graded, and the holder must take additional steps to get such a score. 

In line with our commitment to providing clients with the highest quality products and the most streamlined path to precious metals investing, the United States Gold Bureau is proud to offer a solution that eliminates the need for our clients to obtain grades on their own. This process can be different and resource intensive. We provide a Proof coin inventory made up almost exclusively of the highest PF70 pieces, pre-graded for your convenience!  

The newest advancement in the coin world came not from a world mint but from the world-leading NGC grading company. The ten-point grading scale has long been the standard for most collectibles, including comic books and sports cards. Now, with the introduction of NGCX, this ranking system will extend to coin investment, lessening the need to understand the more complex Sheldon scale of 1 to 70. 
 
NGCX-certified modern coins, minted from 1982 to now, will be eligible for the grading scale, coexisting with the industry-standard 70-point Sheldon grade. NGC states quality is the same as a grade on the NGCX 10-point grading scale and a 70-point scale. On the NGCX scale, 10 is the supreme grade, equivalent to a 70 on the traditional Sheldon scale.  
 
For example, a coin graded NGCX Mint State or Proof 10 has no imperfections at 5x magnification, the same as a coin graded NGC Mint State or Proof 70. Likewise, an NGCX Mint State or Proof 9.9 is the same as a coin graded NGC Mint State or Proof 69 — each a fully struck coin with nearly imperceptible imperfections. 
 
Investment coins with a ten-point scale will be available through the United States Gold Bureau in January 2023. 

Crafting a diversified metals portfolio isn't just about expanding growth; it's a strategic shield against market fluctuations. This balanced approach buffers against volatility while leveraging opportunities presented by market shifts. 
 
Achieving a portfolio that surges with the rising "spot price" while remaining insulated from market turbulence involves a diplomatic mix of bullion and investment grade coins. This fundamental strategy fortifies your metals portfolio, rendering it diversified, balanced, and secure. 

Determining the ideal ratio between bullion and Investment grade coins hinges on three core factors: 

• Tolerance for Risk: Assessing your comfort level with market fluctuations and potential losses. 
• Time Horizon/Liquidity Requirements: Evaluating the duration for which you intend to hold your investments and your liquidity needs.
• Investment Philosophy: Aligning your investment strategy with your long-term financial objectives. 

Portfolios heavily blended with bullion tend to be more aggressive, carry higher risk, and are suitable for short-term investors willing to navigate rapid market movements. These portfolios demand a readiness to tolerate considerable risk due to the swift price changes in shorter time frames.

Conversely, portfolios inclined more towards Investment Grade Coins offer a more secure and conservative approach. Historical data shows lower volatility compared to bullion, offering steady price appreciation. Recommended for more long-term holds, typically five years or more, this approach allows investments sufficient time to mature.

A balanced blend of bullion and investment grade coins safeguards against the unpredictable nature of the gold market. This equilibrium protects investments from the tumultuous fluctuations influenced by external geopolitical forces, ensuring a more stable investment journey. 

Diversification within precious metals isn't just about inclusion—it's about strategic allocation. Our bureau empowers investors with the knowledge to craft balanced portfolios that navigate market volatility and position for sustained growth.