Precious metals are measured in bulk form as bullion. A precious metal is any metal that is considered to be rare. Examples of precious metals include gold, silver, platinum and rhodium. Bullion is a term most commonly used when discussing masses of gold or silver. While bullion is actually considered to be legal tender, the value varies based on how much the actual metal is worth, according to the weight of the precious metal, not based on a designated value of each coin. Bullion has a higher value when the metal is pure.
The value of gold, silver and other precious metals diminishes when new ore sources are discovered or whenever mining or refining processes are improved. Market value can fluctuate tremendously, though gold and silver have traditionally held their value best because of consistently high demand.
Commodity markets will trade bullion in one of two forms, either in coins that are minted in various countries, or in bulk bricks (also called ingots). There are more than ten countries around the world that currently produce gold and silver coins and issue them as a form of money. When minted, a value is placed on the coin. This value is nominal, and for example, in the United States a gold coin can be worth anywhere from 10 and 100 US dollars. Typically this is far below the actual value of the weight of the gold. Most gold coins weigh in over 30 grams. With the current value at approximately 45 USD per gram, this means that a $10 gold coin can be worth over $1000, based solely on weight. This is merely an illustrating example that the assigned “value” is irrelevant when it comes to bullion.
Each country that mints gold and silver bullion coins uses a different format. These are the most common gold and silver coins in the world:
- Gold Nugget (Australia)
- Philharmoniker (Austria)
- Maple Leaf (Canada)
- Gold Panda (China)
- Centenario, Libertad, and Onza (Mexico)
- Orzel Bielik (Poland)
- Krugerrand (South Africa)
- Vreneli (Switzerland)
- Britannia and Sovereign (Great Britain)
- Buffalo, Eagle, and Double Eagle (United States)
The largest bullion coin in the world is the $10,000 Gold Nugget (Australia). This coin weighs 1 kg and is minted from 99.9% pure gold. While some larger gold or silver coins have been manufactured, they have not been mass produced. Examples of bullion coins larger than the Gold Nugget (Australia) are the 100,000 EU Philharmonic (Austria, 2004), weighing in at 31 kg of gold and the $1,000,000 Maple Leaf (Canada, 2007), which is made from 100 kg of gold.
Bullion value is determined by a formula using three variables-type of metal, purity, and weight. Type of metal is the most important factor, as the values of each precious metal will vary widely at any given time, based on the world commodity market and demand. Coin collectors will often seek the most valuable and most rare coins, though they will often have the most substantial amount of silver, as it is a relatively affordable precious metal to invest in.
The value of gold has risen dramatically in recent months. To buy or sell gold coins and jewelry contact a reputable coin dealer or jewelry expert.
Source by Mark Heppard
Measuring Mass of Precious Metals
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