Bullion traditionally stands for gold bars, silver bars and other precious metals bars or ingots. A bullion coin is a coin that is valued by its weight in a specific precious metal. Unlike commemorative or numismatic coins valued by limited mintage, rarity, condition and age, bullion coins are purchased by investors seeking a simple and tangible means to own and invest in the gold, silver, and platinum markets.

The market value of precious metals comes from the "COMEX" (the commodity exchange, where precious metals are traded) at the time of purchase. The spot price plus a "premium" is what determines the cost of bullion to our customers. 

The premium is the cost above market value or "spot price" that gets passed from manufacturer to wholesaler to distributor to retailer to customer. The calculation for bullion premiums depends on five key factors:

• The current bullion market supply and demand factors.
• Local, national, and global economic conditions.
• The volume of bullion offered or bid upon.
• The type of bullion products being sold.
• The bullion seller’s objectives.

The AGW/ASW of a bullion coin or bar is the amount of pure gold/silver content in troy ounces. The physical size and total weight is irrelevant to its AGW/ASW (how much pure gold or silver) it contains. Most modern gold and silver coins and bars are 999.9 pure however, in the case of the American Gold Eagle and South African Krugerrand they are only 91.7% pure gold. Both coins still contain 1 oz of gold but are then mixed with copper and silver which makes them weigh more but still have an AGW of 31.1 grams 

There are 31.1 grams in a "troy" ounce.