The dictionary definition of bullion is any precious metal that is valued by weight. An example of bullion would be an assayed gold or silver bar. They are made from either pure gold or silver and have been examined by qualified experts to verify the fact that they are in fact pure rather than mixed with other metals.
You will find bullion traded as ingots, coins and bars. Any other form of precious metal, such as jewellery is not classified as bullion. The value of bullion is affected by its purity, weight and the metal it is made of.
Why Buy Bullion Rather Than Other Kinds of Precious Metal?
If you are buying precious metals such as platinum, gold or silver as an investment it is important to buy it as bullion rather than in any other form. When you purchase bullion, you get true value for money.
If you buy jewellery or commemorative coins, you will be paying a premium over and above the value of the precious metal they contain. This means that you are wasting some of your money. By buying bullion, you get more in terms of weight of the precious metal than you get when buying jewellery or something similar.
Where to Buy Bullion
It is important that you buy your bullion from a reputable dealer. That way you can avoid buying ingots or coin that have been mixed with non-precious metals. The ingots that you buy should be stamped with an assay stamp. If you are buying bullion coins, buy them only from authorised dealers. In the UK, the Royal Mint maintains a list of reputable dealers who are authorised to sell the coins that they produce.
Never, ever make a deal on bullion that is priced well below the current market value for that particular precious metal. There is no way that a reputable dealer is going to give away their products. The fact that it is priced below the market value is a good indicator that it is fake or has been stolen. If your bullion is to be sent to you, make sure that it is sent via an insured method.
Various Ways to Acquire Bullion Gold
There are several ways to buy bullion gold. Each strategy might be great for many people but all wrong for others, and each method would have pros and cons connected with the procedure. One way to find and buy gold in bullion form is to visit a local coin and rare metal seller. This can determine possible gold bullion for sale but the price paid might be more than the price with other techniques. A local dealer might also have a very limited selection of gold to pick from.
Another possible choice is to make use of an on-line broker. Lots of legitimate retailers have professional websites that offer to purchase and sell gold. This method may offer a wide variety of gold bullion weights and selections for sale, and the business online model helps to keep prices low so that the savings are passed along to consumers. Gold can be purchased at a substantial discount while still acquiring top quality.
Selecting an online seller to get bullion gold should include several precautions. Make certain that the seller is ethical and legitimate. Ensure that the gold purchased is actually the gold received, and that the bullion is of the highest quality whether coins, ingots, or bars are picked. Look at the complaint forums and feedback boards to ensure that the dealer is not running a scam on unsuspecting customers.
Gold bullion can be bought in bar form, and the bars can weigh anywhere from 1 ounce up to Four hundred ounces. Which means that a bar can be purchased for a price that ranges from close to $1,600 an ounce up to a bar that may cost thousands and thousands of dollars. The weight flexibility signifies that gold can be bought with almost any investment budget and large weight specifications are not a problem.
Lower budgets may mean coins or ingots, and in some cases small bars, larger budgets and available discounts mean a cost that is lower per ounce as a result of a bulk purchase. The cost savings seen from purchasing bullion on-line can be substantial.