why is gold coins worth more than gold bullion?

Public Comments

1. Gold coins are refined down to almost 100% purity most of the time. Bullion is refined, but is bulky and not as refined.
2. Normally a coin would be worth more for the collector value behind it. It isn't always the case of course. Check the link below for a little more info about numismatics...
3. Coins have artistic, rarity, and other extrinsic properties that are valuable to collectors (who may or may not be investors). As a extreme example, if a 1907 $20 Saint-Gaudens Double Eagle coin carried around by John F Kennedy as a good luck charm while he was president was sold at auction tomorrow, it would sell for a heck of a lot more than another 1907 gold coin in similar condition (because people really, really want stuff touched by JFK). Other, similar, 1907 gold coins will sell for more than a hunk of .96 oz of gold because the coins are prettier, made a long time ago, and more rare.
4. Some of them have value as collectibles because of their rarity. Maybe more important, even commonplace coins have advantages : * they are easier to carry and to trade than bullion, * more people can afford them, * they are OK as presents * all in all, they are more practical... .
5. One answer that I did not see mentiioned is that coins unless they are counterfit, are of known quality. Bullion is not. Therefore they have a value a little more than the bullion because they are of a know weight and purity and therefore somewhat more valuable in that respect.