Bullion as a word comes from French and the Orignal meaning of bullion is Boiling. This term was used for the activity of the melting houses, in which the creation of the ingots or bars from the raw material happened. The value of bullion is specifically calculated by the value of its precious metals content, which is defined by its purity and mass. Presently, a variety of methods are available through which we can test the purity of metals.
In today's World Bullion is a term, which is used to refer to the metal that has been refined to a high standard of elemental purity. The term is generally applicable to the bulk metal used in the production of numerous forms of precious metals such as coins, bars, and rounds.
Why invest in bullion??
Individual Investors, financial institutions, and commoners prefer precious metals for their financial security. There are multiple advantages of investing in Bullions. Firstly, it is a great hedge against inflation. Secondly, it is highly liquid as compared to other forms of currencies. In addition to this, there is no counterparty risk involved in owning physical bullion, and people treated this as a secure way of investment. As buyers possess these metals all the time in their own hands therefor they treated these as a secure way of investment. Return on bullion is higher when we purchase these in higher quantities otherwise when we buy bullion in low quantity, we have to pay a very premium. Hence, this is a thing that investors should consider before buying this.
Where To Buy These Bullion??
Due to the upward trend in the popularity of billions, Nowadays both offline and online modes are available. Earlier it was very difficult for a buyer to trust these sellers but with the presence of state-of-the-art technological equipment, it is very easy to assess the quality of precious metals. Moreover, the legislation regarding consumer protectionism is highly stringent throughout the globe. Hence, both online and offline way of shopping is easy, secure, and instant.
Types of Bullion
1. Coins
A bullion coin is a product that gets minted by a government entity, and it has legal tender attributed to it (for example, the 1 oz gold Maple Leaf coin has a $50 face value). While typically the precious metal value of bullion should always be higher than the face value, these pieces do come with a premium cost as the designs are intricate and detailed.
2. Bars, Ingots, and Rounds
Unlike coins, the value of a bar, ingot, or round depends upon the level of purity in precious metal. These forms of metals are not for circulation and have no legal tender. Basically, these forms of metals are sold at a lower premium than bullion coins. Akin to this, a buyer can buy these at a lower premium cost.
Types of Mint
A mint refers to a manufacturing facility that produces coins, Bars, Ingots, and Rounds. Throughout the world, a variety of mints is available, which are famous for their specific advantages, which are mentioned above.
Australian Mint
Asahi Mint
Royal Canadian Mint
Perth Mint
Sunshine Mint
Valcambi Mint
Credit Suisse
Engelhard
Heraeus
Istanbul Gold Refinery
Johnson Matthey
PAMP Suisse
Republic Metals Corporation
In comparison to numismatic coins, bullion bars or bullion coins can typically be purchased and traded at lower price premiums over the fluctuating spot price and their trading bid/ask spreads or buy/sell price differences are closer to the values of the contained precious metals.