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What Is Gold Bullion? 

April 29, 2022

Gold bullion has been touted as one of the solid investment options in the world today. And it’s rightly so, with the minimal risks, huge profits, and quick cashing options. 

If this is your first time planning to invest in gold bullion, then you may need to gain some clarity on the different options available and how to choose the best for you. 

And this guide will help you understand this type of investment and provide you with all the necessary details to make a decision. 

 

Gold Bullion Meaning — What It Is and the Different Forms to Invest In? 

 

Gold bullion is a solid investment. But what exactly is it? 

The term ‘gold bullion’ refers to gold coins, gold bars and other physical forms of gold that have been minted or stamped by an official agency. The gold bullion you buy should carry an official stamp of purity. 

They need to be at least 99.5% pure and they must be approved by a government agency and have a legal tender status like the London Bullion Market Association, U.S. Commodity Futures Trading Commission, or the International Organization of Securities Commissions (IOSC). 

Gold bullion is often sold in the form of bars and coins. Gold bars are larger and more valuable than most coins, although their value varies depending on their weight, rarity and the current price of gold. 

Bullion is distinguished from numismatic or collector coins with a higher value based on factors such as condition, rarity, and date of the coin itself and not just its precious metal content. 

 

Are Gold and Silver Bullion Investments Worthwhile? 

bullion bars

 

Gold and silver bullion refers to a product valued by and sold mostly for its metal content and purity. While gold has many uses, it might be best known today as a precious metal investment. There are different types of physical gold bullion, from bars to coins, and each varies in terms of design and size. 

Gold and silver are both commodities universally recognized as having monetary value. Silver is valued much lower than gold but has risen in value over time. Bullion is the place to turn when you want a secure investment that will always hold its value.  

There are several reasons why gold and silver bullion investments are worthwhile: 

 

They are more stable than stocks and bonds. 

 

The bullion price has remained fairly stable for decades, with only minor fluctuations up and down. When the stock market crashes, these two precious metals stand firm against the economic turmoil. 

 

They provide insurance against inflation. 

 

Physical precious metals investments are always better to brace against inflation and currency risks. If you invest your money in paper currency, it will lose value. Gold and silver have long been recognised as a hedge against inflation and a store of value when stock markets are volatile. Both metals have performed well during times of economic turmoil. 

 

They’re a great way to increase your wealth. 

 

Gold is often considered a haven investment when financial markets are volatile, as it has historically proven itself to be a reliable way to preserve wealth. As governments debased their currencies and inflated away the value of their paper money, investors turned to hard assets such as gold and silver to protect their wealth. 

 

They’re flexible enough to aid in times of need. 

 

Silver and gold were once used as currency, and though this is no longer the case, they are still considered valuable stores of wealth that can be exchanged for goods and services. For example, if you owned some silver coins, you could likely exchange them for goods at any coin shop or even some jewelry stores.  

 

How to Time Your Investment in Gold Bullion Bars? 

 

gold silver bars

The gold bullion markets are extremely volatile, with prices changing daily in response to the current economic climate. As an investor, you must learn how to evaluate the market and make informed decisions based on what you see. 

One of the most important things that any investor can do is to identify when a market has reached its peak and then be able to determine how long it will take for the next peak to occur.

To do this, you need to know how long it takes for one particular type of assets, such as gold and silver bullion investments, to reach its maximum value. This is called “market timing.” 

To accurately predict the price of any particular type of commodity, you must be able to identify when a specific type of commodity has reached its peak and then be able to determine how long it will take for the commodity’s price to continue rising. To be able to evaluate any type of investment opportunity effectively, you must have a good understanding of market timing. 

Fortunately, many different online tools can help investors keep track of market timing for modern bullion coins, gold bullion bars and other contemporary precious metal coins. These software programs allow investors to make educated guesses about when specific markets will experience a peak. 

 

How Can You Invest in Gold Bullion? 

 

You can buy pure gold in bullion form. Bullion refers to bars, coins or other forms of pure gold that have been refined to a high degree and are valued for their weight in the precious metal.

There are many different ways you can buy gold bullion in Australia and here is a simple 3 step process on how you can do that.

 

  1. Choose Your Preferred Form of Bullion

     

There are many different types of gold bullion available, including bars and coins. Most investors choose to buy bars because they offer the best value for money, but some prefer minted coins because they are easier to store and transport.

You may also be interested in numismatic coins, which are collectable items with a higher premium than regular bullion coins.

 

  1. Choose Your Preferred Method of Purchasing

     

You can purchase gold bullion online or over the phone through a gold dealer such as Gold Secure.

The process is relatively straightforward and takes just a few moments if you already know which type of bullion you want to purchase and how much you want to spend.

 

  1. Choose Your Preferred Method of Payment

     

Most gold investment companies and brokers are pretty flexible in the payment modes they accept. Most accept debit cards, credit cards and direct bank transfers.

If you’re looking to make payments through cash, you can check with the local gold dealers to find the acceptable payment modes. 

If you’re looking for a reliable and experienced gold dealer to buy bullion, contact us.

With over 30 years of buying and selling gold with the people of Australia, we’ve become one of the most experienced and renowned companies to give complete value for your money. 

 

 

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