What is an Australian Bullion Coin? (Gold and Silver)

Australian Kangaroo Coin

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An Australian Bullion Coin is a gold or silver coin minted by the Perth Mint, Australia’s largest precious metals enterprise.

The Australian Bullion Gold Coin (also called the Australian Gold Nugget) is considered legal tender in Australia.

Bullion coins weigh from 1/20 oz up to 1kg. They are 24-karat gold. The Australian Bullion Coin changes its design annually.

It is the only other precious metal coin in legal circulation to do so. This limited annual minting may increase the coin’s value slightly over the value of the gold used to mint it.

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What is an Australian Kangaroo Coin?

The Australian Kangaroo Coin is one of the Australian silver coins made of one troy ounce of silver. The Royal Australian Mint in Canberra mints this coin.

Like the Australian Gold Nugget, it is considered legal tender, and the mint issues a new design annually. The Australian Silver Kangaroo Coin was first minted in 1993. Since 2003, limited gold-plated coins have been minted.

The purity of the coin is 99.99% silver. There are two forms of the Kangaroo Coin: the legal tender proof coin and an unfrosted circulated version.

What Are Australian Gold Coins Worth?

Australian Gold Coins are worth as much as the amount of gold that is in them. Therefore, the coin’s value fluctuates as the price of gold fluctuates.

At the time of writing, the value of 24-carat gold items was $70.25 per gram. At that value, a 1/2 oz Australian Bullion Coin is worth $1220 when sold to a gold dealer.

You can buy the same coin from a gold dealer for around $1263. One ounce gold coins can be sold for $2438 and purchased for $2524.

Silver Bullion Coins are worth approximately $25 per ounce and $28 per ounce.

Australian Coins (Gold & Silver)

Like many countries with sterling currency, Australia’s coins have a rich history and hold a great deal of appeal for potential investors and collectors.

Let’s break down some of the different types of coins, their histories, and the pros and cons of investing in Australian Coins.

What are Australian coins?

There are many Australian coins, including those mass-produced for everyday use and precious coins such as the bullion Coin.

Most coins in circulation are not precious metals. For example, the Australian “Gold” Dollar is a mass-produced coin made of a mix of copper, nickel, and aluminum.

History of the Coins in Australia

The indigenous peoples of Australia created the first currency system. They bartered shells, tools, services, and goods.

When European settlers came to the country, they introduced European coins, tokens, and promissory notes and continued to trade goods like rum.

In 1825, under British control, the British Government decreed that the British pound was the only form of legal currency in the Australian colonies.

However, in the mid-1800s, gold was discovered in Australia, and Sydney opened a mint to mint the first Australian gold coins.

In 1910, after Australia had become an independent nation, it created a currency based on the British pound system.

Then, in 1966, Australia converted to the decimal system of dollars and cents they use today. The Australian Silver Kookaburra coin is currently the longest-running silver coin in Australia.

Sizes of the Coins

The Australian Gold Bullion coins range in weight from 1/20 oz to 1kg. The sizes of the coins range from 14.10mm in diameter for the 1/20 oz coin to 74mm for the 1kg coin. 

The Australian mint also minted a special 1-tonne coin, worth $1 million and with a diameter of 800mm. The coin is the largest and most valuable coin in the world, made of 99.99% gold.

It is on display at the Perth Mint in Western Australia. There were originally eight sizes of legal tender coins under the Australian dollar: the 1c, 2c, 5c, 10c, 20c, 50c, $1, and $2 coins. 

However, in 1991, the 1c and 2c coins were discontinued. Experts realized the value of the coins was less than the cost of the metals used to make them.

These mass-produced coins range in size and weight from 17mm and 2.5g for the 1c coin to 20.5mm and 6.6g for the $2 coin.

Pros and Cons

When considering the best gold coins for investment, there are pros and cons to buying gold and silver coins.

Pros

Inflation Hedging

Gold coins are valuable and maintain their value even when the purchasing power of a currency decreases due to inflation. 

For example, an owner of gold is protected against inflation because as the purchasing power of the dollar decreases, the number of dollars you must spend to purchase the gold goes up.

Portfolio Diversification

Investing in gold is a good way to protect that money in case an economic downturn decreases the value of your other assets.

Security

Gold is a standard that is not going away. The value is not dependent on the performance of companies, stocks, or bonds.

Cons

The following are the most important cons for you to know regarding investing in coins. 

Storage

Gold is a physical asset that you must keep somewhere. Many people who own gold invest in their own safes and security systems to protect it, which can be costly and cumbersome.

Gold Doesn’t Generate Passive Income

Unlike other investments, gold cannot produce any wealth for you on its own. The best type of investment to own if you want to make serious money is an investment that generates wealth, which gold does not.

Are Australian Coins a Good Investment?

You shouldn’t view Australian coins as a primary investment or solitary investment. However, as part of a diversified portfolio, investment in Australian gold and silver coins could be considered a good way to hedge against an economic downturn.

Before investing in gold bullion coins or Australian gold coins, it’s a good idea to ask yourself whether you have the time and resources to dedicate to properly researching and protecting your investment and how important hedging and diversification are to you.

FAQ’s

Here are some of the most commonly asked questions regarding Australian bullion coins.

Australian gold nuggets have a purity of between 92% and 98%, making them the purest gold coins in the world.

The average purity of an Australian gold nugget is usually around 96%.

The Australian Silver Kangaroo features the image of a kangaroo, as does the Australian Gold Bullion coin.

Australian gold coins are minted in sizes ranging from 1/20 oz up to 1kg of gold. There was also a single 1-tonne Australian gold coin minted which contains $1 million worth of gold and is on display at the Perth Mint.

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