What is Gold Bullion?
Bullion is what is referred to when you are speaking of something that gets its value through the content of precious metals, and not the shape. For example, a gold bar is bullion, but a gold ring is not. Bars, ingots, and coins are the most common forms of bullion.
You can do some research and find out all there is to know about this yellow bullion. You can also look at https://www.journeyforward.org/nationwide-coin-and-bullion-reserve-review/ to see what they have to say. They are truly knowledgeable about bullion.
This article will give you a little more information about bullion and some of the uses for it. This is just an article for beginners, and you can learn more about it by doing some research. This is an interesting topic to learn about.
Gold bullion is the purest form that there is. It usually comes in the form of bars, and this has become the preferred way of buying pure gold. The preferred way used to be coins, and that is still a good way to buy it the pure way. Coins were easier to carry and easier to sell until refiners began selling bars for investors.
You can get bullion bars in any size from one gram to one kilogram. You can also get it from one troy ounce to one hundred troy ounces. The largest size that you can get for the retail market are called gold kilobars. In the institutional market, you can get a four hundred troy ounce bar that is considered the standard.
Good Delivery Bars
A four-hundred-ounce bar that is manufactured by refineries that have been accredited for trade in the worldwide bullion market that is based in London is considered a Good Delivery bar: https://en.wikipedia.org/wiki/Good_Delivery. This site can tell you more about the Good Delivery bars.
The local London global physical gold market is overseen by the London Bullion Market Association. London is considered the most important market in the world and is open twenty-four hours a day.
Trust is crucial to the trade because the transactions are between principals and do not go through an exchange. To make sure that there is the trust that is needed, the LBMA imposes a “Good Delivery” standard for the large yellow bars that are sold in London. The only four-hundred-ounce bars that can be traded on the London physical market are from those refineries that are certified “Good Delivery.”
To keep the Good Delivery status, these bars must remain in a LBMA approved vault. Since this is true, the market is given confidence to trade Good Delivery bars, sight unseen. These Good Delivery bars are sold to central banks and governments to add to their gold reserves. Wholesalers who buy this will then split it up and sell to jewelers and mints. Much of today’s jewelry probably started out as Good Delivery bars.
Gold Bullion Coins
Gold Standard coins that are legal tender are 90% pure or better. These were the most commonly held bullion coins in the past. The coins have gold content based on a nation’s gold exchange rate. Today, these nations mint their pure bullion coins based on a full troy ounce, making it easier to keep a standard rate of exchange.
For many years, the coins were made in .9999 pure. Governments around the world have raised the purity for these coins to four nines, or .9999 pure. One of the most popular coins to collect is the American Gold Eagle, yet it only has .9167 pure. This shows that there is no real standard to gold bullion coins.
What is the Difference Between Gold Bullion and Gold?
Gold by itself can be anything that has the yellow color –flakes, ore, jewelry – all are considered gold. Bullion is that which is held to the highest standards and highest purity. Bullion is known for its content and not its form. Jewelry can be 24k and still not be bullion because of its form. The taste of jewelry is in its form and that can change over time, whereas bullion will still contain the same amount of gold and have the same form.
What is the Cheapest Way to Buy Gold?
The two major types of physical bullion products are bullion coins and bullion bars. The coins may offer more benefits and choices, but they are more expensive. Bars are not as expensive, but they do not have the same advantages that the coins have.
The bullion coins are usually issued by national governments as legal tender which gives them the added benefits of being more liquid than the bars. See here to see which countries have coins that are legal tender. Most coins are also more aesthetically pleasing than bars. This makes them collectible, as well as being a great investment for the gold value.
Gold bars are cheaper than coins, ounce for ounce. If you are buying large quantities of bullion, gold bars are the way to go. This would be the most cost-efficient way to buy gold and would save you some money.
Bigger is better even when buying gold since it is cheaper to make one large gold bar than several smaller coins or bars. If you want to save money buying gold, buy it large quantities such as a one-kilogram bar instead of several gram bars. It is often cheaper to buy the larger quantities.
There are many ways to buy this yellow marvel and you just need to decide for yourself which is the best investment for you. If you want it mostly for the investment, larger is better in most cases. If you are wanting to collect gold, you can buy it in other forms such as coins and jewelry. Either way, gold is a great investment for you. You can buy it buy the ounce or you can buy it in collectible coins and beautiful jewelry. You just need to decide for yourself which is better for you.
You will want to make sure that you are only buying products that are at least 90% pure to get your value. In this way you will be able to have a good investment.