What Is Gold Bullion and How to Use It: A Guide

What Is Gold Bullion and How to Use It: A Guide

Many people are interested in Bitcoin as a kind of digital gold. Nothing, though, can quite compare to a heavy bar of gold sitting in the palm of your hand.

So what is gold bullion or gold bars? Are there different forms of gold? Is it easy to invest or buy gold?

To answer these questions, keep reading and find out what may be your next best investment goals or even a new hobby.

What Are Your Options For Precious Metal Bullion?

Before you look for where to buy gold bars or ingots or bullion, you have to know what they are.

Bullion likely isn’t what you think it is. When most people hear the word “bullion” they think of a bar of silver, platinum, palladium, or gold, stamped with “999.9” or 99.9% or the like.

Instead of worrying about shape for value, bullion relies on content and weight. So what are your options and what do they mean? What are the most common forms of bullion?

  • Coins
  • Rounds
  • Bars

That said, while jewelry isn’t considered bullion nominally, depending on the level of purity, it can be somewhat considered bullion. numismatics are collectible coins made for commemorative purposes and no one really agrees on their price very easily.

Thus, these two forms of gold — jewelry, and numismatics — even if they are pure enough to get considered as bullion are generally not thought of in this way.

Rounds and bars cannot be used as legal tender, only as investments. Coins, on the other hand, are usually produced by governments as legal tender and bullion value. They have an issue date and denomination stamped on them.

How Is Gold Bullion Measured?

Bullion is measured in two ways. The first is fineness, of which carats is a measure (24k for example) or parts of gold per thousand (999.9).

Next is weight, measured in troy ounces.

Coins usually get produced in 0.05, 0.1, 0.25, 0.5, and one troy ounce. Bars are in 1, 10, 20, 50, 100, 1000 gram denominations or 1, 10, and 100 troy ounces. The exception is the LGD or London Good Delivery bar, which is for institutional use and comes in at 400 troy ounces.

What About Ingots?

Ingots are bars of metal at any level of purity and weight. Rather, it’s simply a cast metal block for use in bulk. This could be steel, aluminum, gold, silver, or any metal.

There’s no standardization, for an “ingot” in reality, so they aren’t used for investment purposes beyond, perhaps, slang.

What’s the Best Way to Buy Gold?

One of the ways that many average investors enter the gold investment market is by buying coins. Coins are smaller and easier to secure than a bar. Rounds are the next largest size, and not legal tender, so it’s a logical progression.

From there, buying in larger amounts helps you to buy in bulk or wholesale, which is always less expensive. That said, many people like trading coins and rounds for their aesthetic quality, so you may be able to find buyers willing to pay more than the spot price.

There’s no true “best” form to buy gold because everyone has different preferences. This means the opportunity to make a profit is at all levels of investment.

Still Asking “What Is Gold Bullion?”

So, what is gold bullion? Do you have the answer?

Now that you know what gold bullion is and that governments mint their own gold bullion coins, it may be interesting to track down the relative prices of the different types of currency available, as well as research different gold reserves.

In either case, you need more information. Keep browsing our articles for the latest and best advice in investment, business, and more!

The post What Is Gold Bullion and How to Use It: A Guide first appeared on ULearning.

This content was originally published here.

Rate:

0 out of 5 stars(0 ratings)

Subscribe to Our Newsletter

money for gold logo

Learn About Buying and Selling Gold for the Best Prices

Get the latest news and expert advice on Gold!

We don’t spam! Read our privacy policy for more info.

Leave a Reply

Related

Dec 29, 2020  · Silver Coins. Silver coins are the most popular form in the precious metal market and are highly…

Read more

Rumors of $1000 an ounce silver have been swirling on the Internet over the weekend as bullion suppliers halt sales…

Read more

By JP CorezMoney Metals News Service, Eagle, IdahoTuesday, March 30, 2021U.S. Rep. Alex Mooney, R-West Virginia, today…

Read more

Share Great Content for Our Resource Section

About

MoneyForGold.com is a resource site created for those looking to sell their personal collection of gold - whether it’s jewelry, coins, bars, antiques, etc., anything made from gold can be sold for quick cash. We encourage visitors to signup and share quality “Money For Gold” resources.

Have a question or comment? Email us at: contact@moneyforgold.com

Navigation
MoneyForGold.com
50% Complete

Learn Where to Sell Your Gold for the Best Prices

Free 3-Minute, Practical Stories Delivered to You Everyday!
Buy, Sell, Invest in Gold Today!