What is Bullion?

The term used to describe items made of precious metal: particularly silver, gold, and platinum. Often produced in the form of ingots, bars, rounds, and coins. “Bullion value” is the value of the metal the object contains.

The world Bullion is derived from the French word for boiling, “Bouillon” and references the process of melting precious metals to create bars, and ingots. The worth of a bullion bar or ingot is determined by the value of the precious metal it contains. Bullion bars are most often traded above the precious metals spot price of the overall value of precious metals it contains. Investors and collectors can expect to pay a premium price for bars and coins that are considered collectible items with prices far above the melt value price. Depending on the grade and mint dates of privately struck bullion, they can be considered collectible pieces, increasing the value of the bar, ingot, or coin, etc.

Bullion is traded on international financial markets to protect against the impact of potential financial losses of fiat currencies. Bullion coins are considered to be a better investment than fiat currencies and are held by in reserve by counties and citizens alike. Specifically, Bullion investments are considered a safeguard against financial turmoil such as inflation, and currency devaluation, etc. Gold and silver bullion are the most valuable forms of precious metals investments.

Bullion coins in particular are highly valuable both as a solid investment and as a collectible item within numismatics circles from a historic perspective. Bullion coins are struck by governmental minting agencies as commemorative items and for investment purposes. Generally, contemporary bullion coins are not put into the circulation even if they have both legal tender and monetary face value status within the markets they have been minted.

What people ask…

What is bullion coin worth?
Is there sales tax on silver bullion?
Can you own gold bullion?
What is bullion banking?

See Also…

Asset, Commodity, Share, Bear Market

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