Bullion: what is it exactly? We hear the term all the time, and we often don’t know if it’s talking about chicken broth or gold and silver! I am going to define what bullion is, and why we call gold and silver bullion! Are you ready to learn something new?
Bullion | What is it?
Bullion typically refers to a naturally occurring metal, which in this case is gold or it can be silver. In this case what we are talking about is highly valued, but that isn’t always necessarily the case. We only hear that term a lot in relation to gold and silver, because we don’t really deal or trade in anything else.
There isn’t a demand for pennies although there are some that are rare, however, copper in itself isn’t really a currency, and neither is nickel. Gold is the primary, and of course silver follows closely behind simply because both are plentiful in the world today because they can still be mined naturally.
So, because these are naturally occurring like many others, what makes them so special? Gold and silver are much less reactive in nature, and they have an incredible luster to them. This is what makes them appealing to the eye.
Bullion | Gold, Silver, and Platinum
So, what else is considered bullion? Just in case you weren’t aware, gold, silver, palladium, and even platinum have their own ISO currency code.
This means that technically any of these things could be traded, however gold is the only one that is the most naturally occurring. Because of this we know the price will continue to go up because it will be in high demand.
In fact, right now, with the market so hot on gold prices, it’s the only thing people are really talking about. This is why sales in gold jewelry having slowed down, putting many jewelers out of business.
With the value going up and thus the price of necklaces, earrings, and more, it’s no surprise that the prices are nothing like what they used to be. These metals obviously have practical use, but they also retain their value if not exceed what it was in times past. Make sense?
Bullion | What Determines the Value?
The reality is that bullion value is determined by its demand, or in terms we talk about today its market value. When these precious metals are packaged together in bulk form, they are referred to as bullion, and that is why you hear that a lot when it comes to gold and silver.
It’s important that when you buy gold bullion that you know what you are getting, and that you know what its true fineness is before buying. For example, pure gold is marked 999.9 on gold bars, and indicates that you are getting the real deal.
So, where do you buy your gold? I have some great news for you! I know where you can buy your gold bullion today safe and secure by CLICKING HERE!