What's the Difference Between a Refinery and a Mint

Some people get confused between a refinery and a mint. This is because both deal with valuable metals and sometimes mints also refine. It's worth noting that refineries are usually private businesses, while governments typically own mints. However, there are some essential differences between the two. Let's quickly see what sets a refining and mintage apart.

About Refinery

Refineries have a crucial job: they refine valuable metals. They take things like old jewelry, scrap, and items with precious metals like gold, silver, platinum, palladium, and rhodium. Then, they break them down, melt and purify the valuable metals, and turn them into pure bars. Refining makes the metal more valuable in the market.

Refineries can also change big bars of precious metal into smaller or larger ones. They check how much precious metal is in something, weigh it, and determine its value. Some refineries make and sell bullion or parts for jewelry and other things. They might also store precious metals or trade them globally.

The Refining Process and Its Stages

Refining means removing impurities from a substance. Most metals, when extracted from their ores, are not pure. We call the impure metal "crude metal." The final step in metal production is refining. It makes the metal free from impurities. The method used for refining depends on the metal's physical and chemical properties. There are various methods to purify a metal:

Distillation

Some metals, like zinc and mercury, have low boiling points. Heating them makes them vaporize and leave impurities behind. The vapor is then turned back into a metal.

Liquation

Liquidation is for metals with low melting points, such as tin. The impure metal is heated, and it flows down a slope. While flowing, impurities stay behind, and the pure metal collects at the bottom.

Poling

They are used for metals with oxidized impurities, like copper or tin. A green wood log is used to stir the liquid metal, and the wood's hydrocarbons reduce the metal, removing oxygen as CO2 gas.

Electrolytic Refining

The most common method applies to most metals. The impure metal becomes the anode, and the pure metal becomes the cathode. An electric current is passed through an electrolyte solution, and the pure metal collects at the cathode, while impurities either dissolve or accumulate at the base of the anode.

Vapour-Phase Refining

The metal is converted into a volatile compound by heating it and then quickly recovered.

Zone Refining

They are used for high-level metal purification. Impure metal is placed in a container filled with inert gas and heated with a circular heater. The pure metal crystallizes while impurities move with the heater and are separated.

Chromatographic Method

This method involves the use of chromatography. Impure metal is placed in a liquid or gas medium and moved through an absorbent. Different components absorb impurities at different levels, which are then removed using a suitable solvent.

About Mint

Mints make coins like those we use daily and special ones for collecting and investing. Sovereign Mints, also called Government Mints, make a country's official money. A mint follows strict rules to ensure the weight, purity, and value of the precious metal products they create. These stringent practices make their bullion products known for their quality worldwide.

For example, the United States Mint, Royal Canadian Mint, and Perth Mint in Australia are some government-owned mints. Many Sovereign Mints are famous for their annual bullion coin series, which collectors and investors love for their beauty and government-backed value. These coins often cost more per ounce because they're popular and trustworthy.

Some mints, like the Royal Canadian Mint and Perth Mint, refine precious metals, which helps them make coins more efficiently and cost-effectively. They can even create investment-grade bars to sell for extra money. Bullion Mentor is here to assist you in making an informed investment decision by offering price comparisons.

Private Mints, however, don't make official money. This type of precious metal mint creates its own branded products with designs and specifications without any legal requirements.

The Minting Process and Its Artistry

Coin mintage incorporates art and advanced technology. Here's how coins are made:

Coin Design & Engraving

An artist creates a design. Next, it is turned into a 3D model using either plaster or 3D software. This model is then used to make a synthetic version.

Dies

The design is engraved into steel to create a reduction punch or die. This die transfers the design to a softened steel block through a pressing process. It makes a master die with a negative impression of the coin.

Blanks

Blanks undergo a process to give them a raised rim and a smooth surface, which includes rimming, burnishing, inspection, and degreasing.

Coining

The coining process differs for circulation, collector, and investment coins. Circulation coins, made from base metals, undergo high-pressure striking. Collector and proof coins receive more meticulous attention, and investment coins utilize precious metals.

Medals

The Precious Metal Mint also manufactures medals to commemorate historical events and achievements.

Quality Control and Packaging

Coins are inspected for quality and then packaged for circulation or sale.

Conclusion

Refineries focus on refining valuable metals, removing impurities, and assessing their value. They may also produce bullion and other products. Mints, on the other hand, specialize in coin mintage. Mostly government-owned and known for their high-quality bullion coins. They also create medals to commemorate historical events. Each serves a distinct role in the world of precious metals. When you take the next step towards investing, head to Bullion Mentor, which gives a quick and effective price comparison. Get detailed specifications, choose from the best deals offered by various vendors, and get a seamless coin purchase experience.

FAQ's

1. What is refined bullion?

Bullion refers to refined non-ferrous metals with high elemental purity. It commonly describes bulk metal used for making coins, especially precious metals like gold and silver.

2. What does a refinery do with gold?

Gold refiners play a vital role in the precious metal industry. They take raw materials like gold nuggets and use heat and chlorine gas to separate the pure gold from other metals. Once it's pure, they test it to ensure it's high quality before casting it into bullion products like coins and bars, ensuring that the gold is of the best quality for various uses.

3. What is mint in precious metals?

A mint or manufacturer is a company owned by the state or private. It shapes precious metals like gold, silver, platinum, palladium, and copper into coins, bars, rounds, or special pieces.

4. What is a bullion mint?

A bullion mint is a place that makes gold and silver products like bars, coins, rounds, and more. These facilities can be private or government-owned.