What is Gold Bullion?
Gold bullion is a gold investment in which you purchase gold with a recognized weight at the current market price, along with the small percentage costs which are incurred in the refining and fabricating as well as shipping. Bullion basically refers to a refined weight of valuable metal. Today the most common gold bullion which is available for you is gold bullion bars and gold bullion coins.
Gold bullion is gold in its purest form, which is smelted and refined into bars or coins of varying sizes, weights and purities. Gold bullion is often used by investors as a commodity as a hedge against recession and inflation. Although it is volatile like most commodities, it always maintains a relatively high value.
If properly handled and cared for, the value of gold coins appreciates and depreciates along the same lines as gold bars. Gold bars are as valuable and as delicate as coins, so care should be exercised when handling them. It is now cheaper and easier to buy gold bullion than ever before. And it’s still, by a long way the safest way to own gold
How pure is a Gold Bullion Coin?
They all differ a bit, but the coin that might be the purest is the Canadian Gold Maple Leaf at 99.999% The American Gold Eagle is 91.67% gold. Not e that you can’t have a coin that is 100% gold.
What size does Gold Bullion come in?
You can find Gold Bullion in 1 oz, 1/2 oz, 1/4 oz, 1/10 and 1/20 oz. sizes.
Trading of the Gold Bullion
In London, the benchmark price of gold bullion is fixed twice daily by representatives of five firms that trade bullion. From trading in globally based gold markets the spot price of gold is derived. Supply and demand is the fundamental economic concept on which the price of the gold is based. As the supply of gold increases, demand and consequently the price for gold will decrease, and vice versa. Purity and weight of the individual gold bullion are the other important factors that contribute to the price and purity of the gold bullion.
When purchasing gold bullion make sure to buy your bars from a reputable bullion dealer, one who has been in the business for a long time, and with a good reputation to uphold. On each gold bar there are four important markings, which identify the gold maker, the serial number to the particular bar, weight stated in Troy ounces, and the purity percentage (on average this is 99.98% pure).