Bullion

China - 5732266939 Gold - Münzen - Barren

100 Troy oz. Silver Bullion Bar from Johnson Matthey

Agosi Kupferbarren

Bullion refers to precious metals such as gold and silver in the form of bars, ingots, or coins. The value of bullion is primarily determined by its purity and the mass of the precious metal content. Bullion is often kept as a reserve asset by governments and central banks, as well as by private investors seeking to preserve wealth or hedge against inflation and economic uncertainties.

Types of Bullion

Bullion can come in various forms, with the most common being gold and silver. Other precious metals like platinum and palladium are also considered bullion when stored in physical form for investment purposes.

Gold Bullion

Gold bullion is highly sought after due to gold's historical and cultural significance, as well as its use in various industrial applications. Gold bars and coins are popular forms of bullion investment. Notable gold coins include the American Gold Eagle, the Canadian Gold Maple Leaf, and the South African Krugerrand.

Silver Bullion

Silver bullion, while less valuable per ounce than gold, is prized for its affordability and its industrial applications, in addition to its investment and collectible value. Popular silver bullion forms include the American Silver Eagle and the Canadian Silver Maple Leaf.

Investment in Bullion

Investing in bullion can be a way to diversify an investment portfolio. Bullion investments can be made through the purchase of physical metals, bullion coins, bars, or through precious metals exchange-traded funds (ETFs). Investors often buy bullion as a hedge against inflation or currency devaluation.

Storage and Security

The storage of bullion is a critical consideration for investors. Options include home safes, bank safe deposit boxes, and third-party secure storage facilities. Security measures are essential to protect against theft and loss.

Bullion Markets

The trading of bullion takes place in global markets. Prices are set in major financial centers like London and New York. The London bullion market is among the largest global markets for gold and silver, setting benchmark prices known as the London AM and PM fixes.

Regulation and Standards

The bullion market is subject to regulation to prevent market manipulation, fraud, and to ensure the purity and quality of bullion products. Standards for bullion, such as those set by the London Bullion Market Association (LBMA), ensure that gold and silver bars meet minimum fineness requirements.

See Also

• Commodity market
• Investment
• Gold standard
• Silver standard