Bullion vs Proof Coins: What's the Difference? (2024)

Bullion vs Proof Coins: What's the Difference? (1)

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A lot depends on the coin’s age. In the case of modern coins, it’s often simple to spot the difference. With some older coins, however, especially those with age and toning to the coin, it can be a very different matter. If the coin has been in circulation or has considerable wear, it may even be near impossible to distinguish.

But before we look at how you can identify the difference, what actually is a proof coin and why are they different?

What is a Proof Coin?

Proof coins are truly high quality coins. In a nutshell, they’re coins that have received special treatment and careful handling at the mint, giving them a superior finish and standard of strike compared to the coins that are made for general circulation.

For general issue coins, standard die sets are used, consisting of a reverse die and an obverse die that strike a prepared metal disc (called a planchet) of the right thickness and weight. These dies are struck into the coin with one blow at high speed and pressure. The newly struck coin then passes through shoots, trays and bins, ready to be bagged in volume and distributed to the banks. This process causes what is known as ‘bag marks’, tiny knocks and bruises that lightly mark the coin, even though it's still bright and indeed uncirculated at this point.

What Happens to Proof Coins?

For the minting of proof coins, the process differs compared to when a non proof coin is minted. Here’s how:

Firstly, the dies used to strike the coin are skillfully hand-worked. Extra attention is paid to ensure they have a superior finish; they may be sharpened or some of their engraving refined and, in most cases, the die’s background is polished. Many modern proofs also have a frosting applied to the engraving details, resulting in an enhanced contrast against the highly polished background. Sometimes the frosting process is instead applied to the background fields in the case of matte proofs.


Before the coin is struck, the planchet may undergo special treatment, with extra polishing and handling into the press.


The actual striking process itself is adjusted. The pressure that the mint press applies to the dies may be increased, while the speed at which the dies operate may be slowed down. The coin isn’t only struck once like non proof coins but struck a few times in order to increase the sharpness and detail of the coin’s design. 


The whole minting process is undertaken by an operative of the press with considerable care and attention. This avoids any contaminants entering the coin press process and avoids the creation of any bag marks.


A production run for proof coins usually produces a very small number of coins compared to that of a non proof coin.

The Two Main Types of Proof Coin

The two main types of proof coin that you’ll come across are the earlier issues and the more modern types.

For instance, the 1oz Proof Silver Britannia is a great example of a modern type. The reverse features Britannia holding a trident over a Union Jack with excellent proof detailing. The Britannia has been a legendary feature on coins since 1672 from the day of King Charles the First.

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An example of earlier types is the 1937 English Shilling. Fairly typical of earlier issues, these shillings were issued as a set of proof coins in Royal Mint presentation cases for the year of issue.

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How do you Tell the Difference Between a Proof and Non Proof Coin?

For more modern coins, differentiating between proof and non proof coins is relatively easy. A lot of modern collectors' silver coins are commonly issued as proofs. Look for a strong visual sharpness between the detailed engraving and, for most issues, a frosted appearance in the details, in contrast with a highly polished background. If you’re unsure, there are lots of images on this site and online as comparisons to aid you.

Identifying the older coin proof takes a little more practice, however. You’ll want to take a close look under strong magnification and study the coin’s edge under scrutiny. There will be a definite 90 degree corner – a sharp edge with the milling coming right to the face. A general strike coin, on the other hand, will have a definite rounding to the corner under magnification. The second point to study is the background finish. This should be more polished and shinier than the standard issue. As the coin gets older, particularly for toned coins, this unfortunately gets harder to spot.

If the coin you’re studying is a common coin, it’s a good idea to study it alongside a group of the same coins. If it is a proof, its enhanced features will likely stand out amongst the general issue coins.

The Britannia Coin Company stock a wide selection of proof coins for sale. If you don't see the item you're looking for, please contact us, as we may still have it available.

Bullion vs Proof Coins: What's the Difference? (2024)

FAQs

Bullion vs Proof Coins: What's the Difference? ›

Bullion Coins: Minted in larger volumes, they are usually readily available, allowing investors to purchase in bulk or incrementally without much difficulty. Proof Coins: Their limited production makes them rarer. This scarcity can sometimes make them harder to acquire, especially sought-after editions or series.

Is it better to buy bullion or proof coins? ›

While bullion and proof coins can appreciate over time, proof coins have the potential for greater price appreciation due to their collectability and limited mintage.

How to tell the difference between bullion and proof coins? ›

Frequently Asked Questions
  1. Bullion Coins: Are precious metal coins intended for investors. ...
  2. Proof Coins: Are the finest quality of coin produced by the United States Mint. ...
  3. Uncirculated Coins: Are hand-loaded into the coining press and struck on specially burnished blanks, yet have a soft, matt-like finish appearance.

What's the difference between bullion and coins? ›

Bullion is money itself, a tangible asset with eternal value. Numismatic coins are also known as rare or collectible coins. If you are an investor, the answer is bullion, while numismatic coins are for speculators and hobbyists, not serious investors.

What is the difference between silver bullion and silver proof? ›

A lot more attention is devoted to the striking of proof coins. The coin blank (planchett) is carefuly polished, prior to being struck. The dies are hand finished, with extra attention paid to the fine details. Proof coins are struck several times, whereas bullion coins are struck just once.

Is it better to collect coins or bullion? ›

If you are looking to just collect bullion, rounds are an affordable option as their premiums are often lower than coins. However, if you are planning to sell, coins may be more recognizable to the broader market. Both hold metal value. And some rounds are fairly recognizable, like the Silver Buffalo.

Are proof coins worth the extra money? ›

Many Proof coins are double struck under high pressure, which creates devices fully struck in intricate detail that might not be apparent on a circulation strike coin. Proof coins will typically carry a higher price, but as their rarity increases with time, so should their value.

Should I buy silver coins or bullion? ›

Most day-to-day investors will prefer purchasing silver coins. Junk coins, silver coins that hold no numismatic value but are still worth something because of their precious metal content, are a great choice. They're inexpensive and easy to buy in bulk.

Can you spend proof coins? ›

While you technically could spend a proof coin like any other currency, doing so would be akin to using a painting as a dinner tray – it's possible, but it overlooks the item's true purpose. Proof coins are primarily produced for collectors and as commemorative pieces, not for everyday transactions.

Is it worth collecting silver proof coins? ›

Silver Proof Coins as an Investment

Most silver dealers will not pay you the same premium when you come to sell the proof silver coin. Proof coins are better suited to collectors or as presents. The premiums you would pay for buying a proof coin set is more or less the same as that of a commemorative issue.

What is the best form of silver to buy? ›

Coins or Bullion

If you're looking to buy larger quantities or want to own physical silver not in the form of coins, you may need to see out a specialized dealer. In addition to ownership of physical silver coins, there may be additional value in owning certain coins.

How to tell if a coin is a proof coin? ›

Proof coins are struck twice instead of just once like regular coins, but this one extra strike gives the coins a much shinier, clean-looking finish and makes the intricate details of the design pop. Most proofs can be identified by their mirror-like background.

Is bullion better than coins for investment? ›

Because you cannot cut a gold bar in two, gold bullion coins offer more flexibility. You can split your investment in smaller parts. With a large gold bar, you will have to sell all of your bullions at once. Therefore, gold coins offer have lower market risk as you will not sell on one gold price.

Should you buy silver bullion or coins? ›

In general, silver bars tend to offer the most cost-effective pricing with the lowest premiums over spot compared to silver coins of the same weight. Storage logistics and costs are also lower for smaller amounts of silver, but become more of a consideration as the total dollar value of holdings grows larger over time.

Is it better to invest in gold bars or coins? ›

Investment Purpose: If your primary goal is to preserve wealth and invest in a tangible asset, gold bars may be the better choice due to their higher purity and lower premiums. On the other hand, if you have an interest in collecting and appreciate the artistic value of coins, gold coins might be more appealing.

Are gold proof coins worth buying? ›

Since they are of such high quality, gold and silver Proof coins are one of the most in-demand collectibles in the entire market. While Proof coins do cost more than Uncirculated coins, their premium is not so significant that the majority of the value is found in the mark-up.

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