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<p>[QUOTE=&quot;hontonai, post: 258240, member: 4703&quot;]Many people (including yours truly) paraphrase Rudyard Kipling and declare that &quot;bullion is bullion and coins are coins, and ne&#039;er the twain shall meet&quot;.</p><p><br /></p><p>As bullion, a chunk of precious metal (whether round, square or irregular, and with or without stamped or engraved dates, denominations, legends and/or designs) is worth its weight in that metal.&nbsp; The fact that it is in a recognized form (Krugerrand, ASE, etc.) gives it a small but legitimate premium value, stemming from its known weight and purity, as warranted by a government (or private) mint.</p><p><br /></p><p>GDJMSP has pointed out that some people (a minority in the US and, I believe, a tiny minority in the rest of the world) attribute numismatic value to some bullion pieces.&nbsp; Since the ones with denominations generally have a face value of only a fraction of their bullion value, I simply don&#039;t grasp how such denominations support premium values, but as a wise man once told me, if everybody liked the same thing, everyone would want <u>his</u> wife!</p><p><br /></p><p>The greater the number of people who place numismatic value on a specific type of bullion piece, the greater the premium it will command over its melt value.</p><p><br /></p><p>For example, that <a href="http://www.pcgs.com/articles/article437.chtml" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.pcgs.com/articles/article437.chtml" rel="nofollow">mohur</a> he referred to has a melt value of about $235-240,000, roughly 5% of the price its owner considered too low.&nbsp; There are, however, at least two people who consider that piece to be a collectible coin, not merely bullion - the guy who offered $10 mil, and the guy who said &quot;No thanks&quot;.[/QUOTE]</p><p><br /></p>

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