If you are a newcomer to the world of investing in precious metals, you’ve probably seen some terms like “investment grade” or “numismatics” being used when referring to these metals. Just what do those terms mean and how do they impact your decisions about where and what to investment to make is our topic today. 

It’s pretty simple really, precious metals are ‘graded’ using a number of different methods and these terms refer to that grading. Precious metals are typically graded by a third-party grading service based on the quality and purity of the precious metal and ensure you of its of proper quality for investment. 

There are three commonly used grades for precious metals: 

• Investment 
• Bullion 
• Numismatic 

Investment grade metals are of the highest quality and typically produced through government-approved mints. They are typically sold as bars or coins and are stamped for authenticity. It is thought to be the most popular investment as it is of the highest quality, easier to liquidate and retains its value over time. 

Bullion may be of slightly lower purity than investment grade and produced by a variety of parties. It is still suitable for a long term investment for storing wealth and is typically sold in bars, coins and rounds. It is easy to liquidate, making it a favorite among investors. 

Numismatics are coins or bars with a collectible value – rare or old coins. These coins or bars are of a higher grade and will carry a higher premium.  As collectibles, they may also have historical significance and be highly sought after. These coins typically command a price higher than spot price, but they carry additional risk as their value is dependent upon the rarity, condition and demand for the coin.