What is a Proof Coin?

Proof coins are specially minted coins designed specifically for coin collectors. These coins are produced with a meticulous process that involves multiple strikes using hand-finished dies. The result is an exceptionally detailed coin with a distinct mirror-like background and frosted raised edges.

If you’re new to the world of coins or precious metals investing, it can be confusing to understand the difference between proof coins, brilliant uncirculated coins, and bullion coins. In this article, we’ll break down the differences between each of these coins, including how they differ in terms of appearance, production, accessibility, and value.

Key takeaways:

• Proof coins are high-quality coins specially produced for collectors. They involve a highly specialized process with unique minting methods and multiple strikes, resulting in a distinct polished appearance.
• Brilliant uncirculated (BU) coins are the ‘next level down’ when it comes to coinage. These coins are struck twice using normal minting methods, resulting in a brilliantly shiny finish. While less valuable than proof coins, they are still highly sought after by collectors.
• Bullion coins are designed purely for investment purposes. These coins still exhibit excellent craftsmanship but to a lesser degree than proof coins or BU coins. For that reason, their price is more closely tied to gold’s market price.

What is a proof coin?

A proof coin is a specially minted coin struck with a higher level of craftsmanship than regular coins. These gold and silver coins are usually produced for collectors and have a mirror-like background and frosted raised edges.

Traditional proof coins were early samples of a new coin issued to check a coin’s design and quality. Today, however, proof coinage is a term used to describe high-quality coins that are specially struck with the intent of being a collector’s item, usually with limited mintages.

Proof coins are known for their high quality. They’re often struck multiple times using hand-finished dies. Unlike regular circulated coins, proof coins are not intended for daily use – they’re beautiful and rare coins designed for collection or display.

How are proof coins made?

Proof coins are produced through a specialized minting process that combines high-quality materials with exceptional care and craftsmanship. Here’s a step-by-step look at how proof coins are made.

Step 1: Selecting high-quality blanks

First, a certain number of metal blanks (or planchets) are carefully selected. These are made from high-purity 24-carat gold, fine silver, or platinum, specially chosen to be free from imperfections.

Step 2: Polishing dies

Dies are engraved tools used to imprint designs onto the planchets, or blanks. When making proof coins, the dies are polished to achieve a mirror-like shine, giving proof coins their distinctive mirrored background.

Proof coins are often struck using hand-finished dies, meaning an expert carefully etches the metal die to produce a mirror image imprint. This minimizes the chance of imperfections in the coin.

Step 3: Multiple strikes

Unlike normal coins, which are struck just once, proof coins are struck multiple times using the polished and hand-finished dies. Each strike enhances the clarity of the design and deepens the contrast between the raised elements and smooth background.

When striking, the blank is placed into a coin press by hand and struck multiple times at the lowest speed and pressure possible. This helps avoid any blemishes and produces a sharp, clean design with incredible levels of detail.

Step 4: Quality inspection

After the final strike, proof coins are inspected for quality assurance. If they meet the high standards required for proof coins, they’ll be packaged – usually in a special gift box – and sold to collectors and investors.

This intricate process and multiple strikes means that proof coins take a lot longer to produce compared to regular bullion coins. To give you an idea, in an hour you can produce 3,000 silver bullion coins or just 50 proof coins.

Learn More: How Much Does it Cost to Grade a Coin?

What’s the difference between proof coins and brilliant uncirculated coins?

Proof coins and brilliant uncirculated (BU) coins are both highly-sought after by collectors, but they differ in terms of production, appearance, and rarity. Let’s take a look at the difference between the two.

Production process

The main difference between proof and brilliant uncirculated coins is how they’re made.

Proof coins involve a meticulous production process with multiple strikes using hand-finished dies. This results in a highly polished, mirror-like appearance with intricate details and frosted designs. They’re usually minted in limited qualities and packaged in special boxes or cases for collectors.

Brilliant uncirculated coins, however, use standard minting methods with regular dies and just two strikes. While they’re still high quality coins with a shiny, frosted finish, a brilliant uncirculated coin won’t have the same level of detail and craftsmanship of proof coins.

Appearance

The special production process used for minting proof coins results in a mirror-like finish on the background of the coin with frosted designs on the raised surfaces. This gives proof coins a striking contrast with the highly-polished look they’re known for.

Brilliant uncirculated coins still have a shiny finish, but they lack the polished mirror effect of proof coins. Because they’re only struck twice, their design also doesn’t stand out as much as in proof coins.

See: How to Read a Coin – Components of a Coin: Obverse, Reverse, Edge and Inscriptions

Rarity

Proof coins are produced in more limited quantities compared to BU coins. This makes them rarer and usually more valuable. Because of the extensive time and craftsmanship involved in minting proof coins, they also tend to carry higher premiums.

Brilliant uncirculated coins, however, are minted in larger quantities and often less expensive than proof coins. This makes them more accessible to the average collector.

Proof coins vs brilliant uncirculated coins

The below table summarises the key differences between proof coins and brilliant uncirculated coins.

	PROOF COINS	BRILLIANT UNCIRCULATED COINS
PRODUCTION PROCESS	Uses a highly specialized process using hand-finished dies and multiple strikes	Uses standard minting processes but with two strikes
APPEARANCE	Mirror-like background contrasted with frosted designs on the raised surface	Shiny finish across the whole coin, lacks the mirrored effect
RARITY	Produced in limited quantities	Produced in larger quantities
PREMIUMS	Carry higher premiums	Carry lower premiums compared to proof coins
COLLECTIBILITY	Highly sought-after by collectors	Prized by collectors but also more accessible

Difference between proof coins and bullion coins

Proof coins are also different to bullion coins, which are primarily produced for investment purposes. Here are their key differences:

• Production: Proof coins are produced during meticulous methods while bullion coins are mass-produced using standard minting methods.
• Purpose: Proof coins are specially made for coin collectors while bullion coins are made for precious metals investors.
• Appearance: Proof coins have exceptional levels of detail and a polished finish while bullion coins have a standard finish.
• Premiums: Proof coins often carry a premium above the spot price of gold while bullion coins are generally priced according to gold’s market value.
• Packaging: Proof coins are often packaged in special boxes or cases designed for display, while bullion coins are usually sold in simple, practical packaging.

Proof coins vs bullion coins

The below table summarises the key differences between proof coins and bullion coins.

	PROOF COINS	BULLION COINS
PRODUCTION PROCESS	Meticulous process with specialized minting methods	Mass-produced with standard minting methods
PURPOSE	Made for coin collectors	Made for precious metals investors
APPEARANCE	Distinct mirror-like finish with exceptional detail	Standard finish
PREMIUMS	Often carry premiums above gold’s spot price	Carry lower premiums compared to proof coins
PACKAGING	Usually packaged in special boxes or display cases	Sold in simple packaging

Should I buy a proof coin, brilliant uncirculated coin, or bullion coin?

Deciding whether to buy proof coins, brilliant uncirculated coins, or bullion coins depends on your investment goals, budget, and personal preferences. To help you decide, here’s what each of these coins offer in terms of investment.

Proof coins

Proof coins are ideal if you’re a collector looking for a rare investment with excellent craftsmanship and beauty. Because of their limited mintages and rarity, these coins carry higher premiums over the spot price, meaning you’ll be paying more than the intrinsic value of their precious metal content.

Brilliant uncirculated coins

Brilliant uncirculated (BU) coins can be thought of as the middle-ground between proof coins and bullion coins. They still have a brilliant shine compared to standard bullion coins, but they have lower premiums compared to proofs. BU coins are a good option if you’re looking for an investment vehicle that still has a touch of collectibility and aesthetic appeal.

Bullion coins

Bullion coins are the ideal choice for investors who are solely focused on precious metals content. These coins are more closely linked to gold or silver’s spot price, making them the most cost-effective option for accumulating wealth. They’re highly liquid and easy to trade, but lack the rarity and intricate detail seen in BU or proof coins.

Keep Reading: Bullion vs Numismatic Coins

Start investing in precious metals today

Investing in proof coins, BU coins, or bullion coins provides a way to preserve or grow your wealth with the value of precious metals. Each of these coins offers something different. If you value aesthetic appeal, rarity, and collectibility, proof coins are the ideal investment. If you’re looking for a more practical way to benefit from precious metals, bullion coins are excellent investments.

At StoneX Bullion, we offer an extensive range of gold coins, silver, platinum, and palladium coins for investors of all budgets and preferences. Explore our range and start growing your coin collection today.