Gold bullion is gold priced by its weight and purity rather than its design or rarity. It comes as coins, bars and rounds, and it sells for spot ({{gold_oz}} per ounce right now) plus a premium of roughly 1–15%, depending on size and type.
Gold is trading at $4,194.40 per troy ounce right now. That number is the starting point for every piece of gold bullion in the US. A bullion product is worth its gold content, plus or minus a margin. Unlike a necklace, it carries no design markup.
This guide covers what counts as bullion, the purity standards behind it, what you will actually pay over spot, where to buy and sell, how to store it, and how to avoid buying a tungsten-filled souvenir.
What gold bullion is (and isn't)
Gold bullion is refined gold valued for its metal content. It is made to a stated weight and purity, so its price follows the live gold price closely.
It comes in three main forms:
- Coins. These are struck by government mints, such as the American Gold Eagle or Canadian Maple Leaf. They carry a legal-tender face value (a 1 oz Eagle says $50), but nobody pays face value. The coin trades on its gold content.
- Bars. These are made by refiners and private mints such as PAMP, Valcambi, Perth Mint and Royal Canadian Mint. Sizes run from 1 gram to 1 kilo and up.
- Rounds. These look like coins but come from private mints and have no face value. They are usually the cheapest way to buy gold in coin form.
Some things are not bullion:
- Jewelry. It is usually 10K–18K, and you pay for design and retail markup.
- Numismatic coins. These are rare or graded coins, priced on scarcity and condition.
- Gold-plated "commemoratives" sold on late-night TV. They contain almost no gold.
If a product's price can't be explained by weight × purity × spot plus a modest premium, you are buying something other than bullion.
Purity standards: the numbers that matter
Bullion purity is written as fineness, meaning parts per thousand of pure gold.
| Fineness | Karat equivalent | Common examples |
|---|---|---|
| .9999 ("four nines") | 24K | Maple Leaf, Gold Buffalo, Britannia, Philharmonic, most modern bars |
| .999 | 24K | Many bars and rounds |
| .995 | ~24K | Minimum for large LBMA "Good Delivery" bars; IRS minimum for most IRA bullion |
| .9167 | 22K | American Gold Eagle, Krugerrand, British Sovereign |
| .900 | ~21.6K | Pre-1933 US gold coins |
A common misunderstanding: a 1 oz Gold Eagle at 22K still contains one full troy ounce of pure gold (31.1035 g). The extra weight is copper and silver alloy, which makes the coin harder and more scratch-resistant. The 22K coin and the 24K coin hold the same gold content. They differ in how easily they scuff.
Premiums: what you actually pay over spot
Spot is a wholesale benchmark, and you will not buy at spot. The premium covers minting, distribution and dealer margin. Two rules hold almost everywhere:
- Smaller pieces cost more per ounce. It takes about the same work to strike a 1 g bar as a 1 oz bar.
- Government coins cost more than generic bars and rounds. You pay extra for recognition, which also helps when you sell.
Typical premiums over spot at reputable US dealers in normal market conditions:
| Bullion type | Typical premium over spot | Notes |
|---|---|---|
| 1 kilo bar (32.15 oz) | ~1–2% | Lowest cost per ounce; large ticket size |
| 10 oz bar | ~1.5–3% | Popular sweet spot for larger buyers |
| 1 oz bar (PAMP, Valcambi, etc.) | ~2–5% | Assay-carded bars sit at the higher end |
| 1 oz round (private mint) | ~2–5% | No face value; less recognized than coins |
| 1 oz sovereign coin (Eagle, Maple, Buffalo, Krugerrand) | ~3–7% | Eagles usually carry the highest premium of the group |
| 1/4 oz and 1/2 oz coins | ~6–10% | Flexibility costs extra |
| 1/10 oz coins | ~8–15%+ | Expensive per ounce |
| 1 g–5 g bars | ~10–25%+ | Gift-sized; worst value per ounce |
| Pre-1933 US gold (non-rare) | Varies widely | Semi-numismatic; can trade above or near melt |
Premiums widen when demand spikes. Panic buying has pushed small-coin premiums well past these ranges before. Premiums also vary with payment method, since card payments typically cost about 3–4% more than wire or check.
Worked example. A 1 oz Gold Eagle at a 5% premium costs about $4,194.40 × 1.05. Ten 1/10 oz Eagles at a 12% premium cost about $4,194.40 × 1.12 for the same total gold. The fractional route costs roughly 7% more, which is the price of being able to sell a small piece at a time.
For live values by product, see our gold coin and bar values page. For bar sizes from 1 gram to 1 kilo, see how much a gold bar is worth.
Popular gold bullion products in the US
These trade easily at nearly any dealer in the country:
- American Gold Eagle (22K). The most recognized US bullion coin, and IRA-eligible despite being 22K. See Gold Eagle value.
- American Gold Buffalo (.9999). The US Mint's 24K coin, which typically costs a bit less than the Eagle.
- Canadian Gold Maple Leaf (.9999). Has strong security features and is widely traded.
- South African Krugerrand (22K). The original modern bullion coin, often among the cheapest 1 oz government coins. See Krugerrand value.
- 1 oz and 10 oz bars from LBMA-accredited refiners (PAMP Suisse, Valcambi, Perth Mint, Royal Canadian Mint, Argor-Heraeus).
- Costco gold bars. These are legitimate PAMP and Rand Refinery bars, sold to members at prices near typical dealer levels. See our Costco gold bar page.
Coins vs. bars vs. rounds: the trade-offs
| Government coins | Bars | Rounds | |
|---|---|---|---|
| Cost per oz | Highest | Lowest (at 10 oz+) | Low |
| Recognition when selling | Best | Good (brand matters) | Fair |
| Counterfeit risk | Lower (mint security features) | Higher for unbranded bars | Moderate |
| Divisibility | Excellent (fractionals) | Poor at large sizes | Good |
| IRA eligible | Most | If .995+ and approved refiner | Generally no |
There is no universally right answer. Bars minimize cost, and coins maximize liquidity and recognition. Many buyers hold some of each.
Where to buy gold bullion in the US
- Online dealers (JM Bullion, APMEX, SD Bullion and others) usually have the tightest premiums, especially on bars and wire payments. Shipping is typically insured and discreet.
- Local coin and bullion shops let you inspect the gold and leave with it, with no shipping risk. Premiums are often a bit higher, but you can negotiate.
- Costco sells a narrow range of products, usually with purchase limits, and gives Executive members a rewards kickback.
- US Mint direct sells at a premium over dealers and in limited bullion supply. It is mostly a collector channel.
- Banks in the US rarely sell bullion.
- Avoid TV and radio "gold specials," cold callers, and anyone pushing "exclusive" or "limited edition" coins. Those carry markups of 30–100%+ and are often numismatic products dressed up as bullion.
Before you buy, check the dealer's buyback price on the same product. A small gap between their buy and sell prices is a good sign the dealer is honest. Our full walkthrough is in how to buy gold.
Selling gold bullion
Recognized bullion coins and bars sell back near spot, often at 97–100%+ of spot. Popular coins sometimes fetch a small premium when demand is hot. That is far better than scrap jewelry, which typically pays 70–95% of melt depending on the buyer.
To get the best price:
- Check spot right before you call.
- Get at least three quotes: an online dealer buyback, a local coin shop, and one more.
- Ask for a quote in percent of spot or dollars over or under spot, so you can compare offers directly.
- Keep original packaging and assay cards, because some buyers deduct for missing ones.
Dealers do not resell pawn-shop or gold-party offers, and you shouldn't accept them for bullion either. Step-by-step details are in how to sell gold.
Taxes and reporting
- Collectibles tax. Long-term gains on physical gold (held more than a year) are taxed as collectibles at up to 28% federally. That is higher than the 15–20% rate on stocks. Short-term gains are taxed as ordinary income. Gold ETFs that hold metal are treated the same way.
- Dealer reporting. Dealers must file a 1099-B for certain sales, such as 25 or more 1 oz Krugerrands, Maple Leafs or Mexican Onzas, or bars totaling 1 kilo or more. Gold Eagles generally aren't on the reportable list. Either way, your gains are taxable whether or not a form is filed.
- Cash over $10,000. Dealers file Form 8300 for cash payments over $10,000.
- Sales tax on bullion varies by state. Many states exempt it, but some don't, or only exempt purchases above a threshold.
Storage and insurance
| Option | Typical cost | Watch out for |
|---|---|---|
| Home safe | One-time safe cost | Homeowners policies often cap precious metals at roughly $1,000–$2,500 unless you schedule them |
| Bank safe deposit box | ~$50–$300/yr | Contents are not FDIC-insured and may be excluded from your policy |
| Private depository (allocated/segregated) | ~0.1–1% of value per year | Confirm insurance, audits and that the metal is in your name |
At current prices, a modest stack can be worth tens of thousands of dollars. Call your insurer before you buy, not after a burglary. Keep receipts and photos either way.
How to avoid fake gold bullion
Counterfeits are a real problem, especially tungsten-filled bars and fake coins sold online and in person. Tungsten has nearly the same density as gold, which makes it the counterfeiter's favorite filler.
- Buy from established dealers, not marketplace sellers or strangers offering "under spot." Nobody sells real gold below spot.
- Weigh and measure. Check weight to the hundredth of a gram and compare diameter and thickness against the mint's published specs. A 1 oz Eagle or Krugerrand weighs 33.93 g. Maples and Buffaloes weigh 31.1 g.
- Magnet test. Gold isn't magnetic, so a strong pull means a fake. Passing the test proves little, though, because tungsten isn't magnetic either.
- Ping test. Genuine gold coins ring with a long, clear tone when gently tapped. Fakes thud.
- Electronic verifiers such as a Sigma Metalytics device check the metal below the surface without damage. Many coin shops will also XRF-test a piece for free or a small fee.
- Check security features. Maple Leafs have micro-engraved marks, and many PAMP bars carry Veriscan or other serialized assay cards.
If a deal looks too good, it is.
The bottom line
Gold bullion is the plain, honest form of gold: its price is weight × purity × $4,194.40, plus a premium. Larger bars give you the most gold per dollar, while government coins buy you recognition and easy resale. Fractionals and gram bars cost the most per ounce. Buy from reputable dealers, compare premiums and buyback spreads, plan your storage and insurance before the metal arrives, and remember the 28% collectibles tax when you sell.
Sources
Frequently asked questions
What is the difference between gold bullion and gold coins?
Bullion is any gold valued mainly by its weight and purity, and that includes coins, bars and rounds. Bullion coins like the Gold Eagle or Maple Leaf are one type of bullion, while rare numismatic coins are not bullion because their value depends on scarcity and condition.
How much is a 1 oz gold bullion coin worth?
A 1 oz coin contains gold worth about {{gold_oz}} at spot. Dealers typically sell popular 1 oz coins for roughly 3–7% over spot and buy them back near spot.
Is it cheaper to buy gold bars or gold coins?
Bars are usually cheaper per ounce, especially at 10 oz and 1 kilo sizes, where premiums can drop to about 1–3%. Government coins cost more but are easier to verify and resell.
Is 22K gold bullion worse than 24K?
No. A 1 oz 22K coin like the Gold Eagle or Krugerrand contains a full troy ounce of pure gold. The added alloy makes it heavier and more durable.
Where is the best place to sell gold bullion?
Bullion dealers and coin shops typically pay 97–100%+ of spot for recognized coins and bars. Get several quotes in percent of spot, and avoid pawn shops and gold parties for bullion.
How is gold bullion taxed?
In the US, long-term gains on physical gold are taxed as collectibles at up to 28% federally. Short-term gains are taxed as ordinary income.
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AIJessica · AI market analystJessica is one of GoldTrack USA's AI writers. Figures are checked automatically against live market data, and sources are listed above. Not financial advice.
