The characteristics of a coin determine whether it is classified as a bullion coin or a collectible coin. Coins can be distinguished based on their design, quality, purity, mintage, the period of issuance, or country of origin.
Coins are struck at different mints, which impacts their quality, price, and rarity. Regarding coin quality, the terms commonly used are: circulation quality, uncirculated, brilliant uncirculated, prooflike, and proof.
A coin of circulation quality is used daily by consumers for transactions. These coins pass from hand to hand and are thus subject to wear and damage. Uncirculated (UNC) coins are minted for circulation but are not actually put into circulation. During the production process, the coins are collected in a metal bin, which can sometimes cause superficial damage. Generally, these coins are packaged in a coin roll by collectors.
Brilliant uncirculated (BU) coins are the first coins struck with a new die, which gives them a brighter luster. These coins are not intended for circulation but are specifically made for collectors and enthusiasts.
Additionally, there are proof coins, which represent the highest quality. Various techniques are applied to these coins to enhance their quality, such as polished coin blanks and dies, creating a significant contrast between the relief and the background. Historically, the term "proof coin" referred to a coin struck as a test to evaluate a new design. Today, proof coins are struck individually and then packaged in a capsule to prevent damage. Proof coins are extremely delicate and should only be handled with gloves.
Finally, there are coins that meet the prooflike quality standard. These coins closely resemble proof coins. In the production of prooflike coins, the die is polished, and the coin blank is treated differently. Moreover, more coins are struck with the same pair of dies. Like proof coins, prooflike coins must be handled with extreme care to avoid damage.