What is Gold Bullion?
The Foundation of Gold Investment
Gold bullion refers to gold in a bulk form, valued by its weight and purity rather than a monetary face value. It is the standard for physical gold investment and comes primarily in two forms: bars and coins.
Gold Bars
Gold bars, also known as ingots, are typically produced by refineries and minted in various sizes, from 1 gram to 400 troy ounces (the standard London Good Delivery bar). They are valued almost exclusively on their gold content, making them a straightforward way to own gold. Their simple form often means lower premiums over the spot price compared to coins.
Gold Coins
Bullion coins are produced by government mints and have a nominal face value, though their real value is based on their gold content. Popular examples include the American Gold Eagle, Canadian Maple Leaf, and South African Krugerrand. While they often carry slightly higher premiums than bars due to minting costs and collectibility, they are easily recognizable and highly liquid.
Purity and Weight
Both bars and coins are stamped with their weight and purity (e.g., .9999 fine, which is 24K gold). Understanding these markings is crucial for verifying the authenticity and value of your investment. Bullion is the most direct way to own the metal that has been a store of value for millennia.
