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OTC Precious Metals

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Investment Grade Bullion Coinage

National mints the world over produce millions of troy ounces of investment grade bullion coinage in various sizes. These coins are generally "legal tender coins" and as such the issuing government guarantees the purity and fine precious metal content.

Investment grade bullion coins currently in production typically range in size from 1 Troy Ounce to as small as 1/20th Troy Ounce of fine gold, silver or platinum. With the purity ranging from just over .9000 fine to .9999 fine, investment grade bullion coins dimensions and gross weight will vary from mint to mint. Some of the more popular investment grade bullion coins in production today are:

The following sample coins will be displayed:

Popular Investment Grade Bullion Coins
Gold United States Mint American Eagle
Gold Royal Canadian Mint Canadian Maple Leaf
Gold Austrian Mint Vienna Philharmonic
Gold South African Mint Company South African Krugerrand
Silver United States Mint American Eagle
Silver Royal Canadian Mint Canadian Maple Leaf
Platinum United States Mint American Eagle

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Sample Pricing

Typically investment grade bullion coins will trade at a premium to the price of refined bullion. This premium, initially established by the issuing mint, reflects the additional expense involved in striking and distributing the coins. As with other physical commodities, supply and demand can and will influence the level of these premiums in the secondary market. Alliance makes active, two-way, bid-ask markets in these and other popular investment grade bullion coins.

The U.S. Mint produces a finite number of Gold Eagle coins each year. This creates year specific demand and is one of the factors affecting the premium a particular issue may command. Gold Eagles coins are initially distributed through a Primary Dealer Network and are priced against London Gold. The direct mint premiums are quoted as a percentage of the value of one troy ounce of gold. The Mint's initial offering premiums to designated Primary Dealers are:

American Gold Eagle
For example, with London Gold trading at $320.00 per troy ounce, new Gold Eagles (i.e., current year and direct from the Mint) would be priced to the Primary Dealers as follows:
Weight   % Premium Cost per Coin
1 TOZ Coin = 3.0% $329.60
1/2 TOZ Coin = 5.0% $168.00
1/4 TOZ Coin = 7.0% $85.60
1/10 TOZ Coin = 9.0% $34.88

Gold Eagle Coins are then offered to the investing public with a mark-up and are bought from the investing public at a mark-down that reflects current demand for refined gold bullion and the specific supply and demand for a particular issue (year and weight).   In most cases, the public may only purchase the coins from a primary or secondary dealer and cannot buy coins directly from the issuing mint (except for "proof" grade collectables).


The above example illustrates coin pricing as a percentage of net fine weight value. Investment grade bullion coins can also trade on a dollars and cents per troy ounce premium and/or discount or on a per coin premium and/or discount to the prevailing gold price.

Product Pricing

For pricing information and availability log on to TheOTCDesk.com or call 800.452.8676.






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