Bullion is gold, silver, or other precious metal in the form of bars or bars. Usually, bullion is used for trading in the market. The word "bullion" comes from the ancient French word bouillon , which means "to boil", and is a term used to describe the activity of a melting house.
The value of bullion is usually determined by the value of the precious metal content, determined by its purity and mass. To assess the purity of gold bars, centuries-old fire test techniques are still used, along with modern spectroscopic instruments, to accurately determine their quality to ensure owners receive fair market value for it. It is also weighed very accurately.
Retailers can sometimes market ingots and basic metal bars, such as copper, nickel, and aluminum as "bullion", but this is not a widely accepted definition.
Video Bullion
As an investment
Bullion specifications are often governed by market or regulatory bodies. In the EU, the minimum purity for gold bars, which are treated as investment gold with regard to taxation, is 99.5% for bullion bars and 90% for bullion coins.
Investors may choose to buy physical gold bullion for several reasons - to try to hedge against currency risk, inflation risk, geopolitical risk, or to add diversification to the investment portfolio.
Maps Bullion
London Gold Market
The London bullion market is an over-the-counter market for wholesale trade in gold and silver. The London Bullion Market Association (LBMA) coordinates the activities of its members and other participants in the London bullion market. The LBMA establishes and promotes quality standards for gold bars and silver bars. The acceptable minimum fineness from the Good Delivery Bar is 99.5% for gold bars and 99.9% for silver bars.
Coins
Bullion coins depict contemporary precious metal coins that are printed by authorized agents for investment purposes. Historically, most currencies in the form of bullion, silver and gold coins are the most common metals. Some bullion coins have been used as currency throughout the 20th century, such as Thaler Maria Theresa and Krugerrand. However, modern bullion coins generally do not go into the general circulation despite having a legitimate tender status and nominal nominal value. Some modern bullion coins, such as American gold and silver eagles, are produced as business strikes and a collection of unreleased evidence and versions. Business strikes are usually sold at prices that are commensurate with their precious metal content, while billable versions are sold at a significant premium price in excess of the true bullion value. In some cases, the value and value of a business strike coin can affect their value, so they are considered numismatic goods rather than bullion.
Usage
Various professional market players are active in the bullion market, such as banks, fabricators, refiners, and dome operators or transportation companies, as well as brokers. They provide facilities for refining, smelting, testing, transporting, trading, and gold and silver dome bars.
In addition to direct bullion traders, other professionals such as investment companies and jewelers use gold in the context of the products or services they produce or offer to customers. For example, the stock of the world's largest gold exchange-traded fund, SPDR Gold Shares, represents ownership in domed bullion.
Private people use gold primarily as an investment or a potential value store. Gold bars and gold bars are the most important form of physical precious metal investment. Bullion investment can be considered as insurance against inflation or economic turmoil and may not involve direct counterparty risk.
Compared to numismatic coins, bullion bars or bullion coins can usually be bought and traded at lower margins and their trade prices closer to the values ​​of precious metals contained.
See also
- Bullionism
References
Source of the article : Wikipedia
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