Any precious metal in bulk form is known as bullion. Precious metals are those that are rare to find for example Gold and Silver. Due to their value, they are traded in commodity markets. Bullion metals may be cast into two different forms, either into ingots or into coins.
Gold bullion does not have any artistic component in its value, like jewellery or numismatic coins do. It is hard for some people to comprehend why it still has high value. The answer to this is simply in the major monetary role of gold. With the rising value of gold, it is advisable to people to invest as much as possible in gold.
The value of a bullion rises because of its mass and purity rather than by its face value. Gold Maple Leaf is a minted coin by Canada with a face value of $50 and its weight was equivalent to one troy ounce. By September 2007, the coin was worth $737 as bullion. 99.9% purity in most cases is demanded however, this may vary. The Canadian Gold maple leaf series is recorded to have purity level up to 99.999%. It is impossible to attain 100% purity level as complete purity can only be asymptotically approached.
Amongst the few very well known historic and modern bullion coins is 22 carat Crown gold. The largest bullion coin in the world to be ever made is the 10000-dollar Australian Gold Nugget. This coin consists of a full kilogram, and purity level of the gold is up to 99.9%.
Transactions and trade affiliated to gold bullion coins is pretty much equivalent to the world gold price. However, a premium of 4% is usually charged when you buy in bulk and 8% when you purchase smaller amounts. The sizes of bullion bards vary as per the suppliers manufacturing process. The weight range of gold bullion bars ranges from a few grams up to 3 kg 1 to 3 kg bars are welcomed by people involved in professional markets of Zurich and New York.
London is the main physical bullion marketplace. Bars of 12.4 kg are available about eleven inches long, and have manufacturer’s name, weight of bar and its purity level printed on it. The bullion is not as firm and strong as it looks, it is actually much softer.
Often due to the softness, its surface is scratched and it gets flattened on its edges. Gold bullions when stored are stocked on top of each other, which also leave a dent on their surface. All gold bullions that are delivered against a London spot market trade must fulfil certain requirements, which include purity level to be at least 99.5%.
The bars will be accepted provided that they are of a standard shape almost weighing about 400 oz. They should be accurately assayed so that the exact gold content of the bar is known; the weight and purity should be stamped on the bar. The market only approves of those bars that are manufactured by a listed group of refiners.
Source by Jack Wogan
What is Gold Bullion?
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