Everything You Ever Wondered About Bullion
Last time on the Stewart Kuper Jewelers blog we discussed why gold is valuable both to people and jewelers and as a part of economies and for holding wealth. This time we are going to continue that train of thought about gold and look at gold bullion! Don’t know what that means or what bullion is? Don’t worry, we are going to cover what it is, why it is, and more! Consider this Bullion 101!
What is Gold Bullion
Bullion is gold that is recognized as being 99.5 – 99.9% pure and is in the form of gold bars or ingots. It represents wealth as the gold is pure and there is a bulk of it. Silver bullion exists as well. Rarely can they be used as legal tender.
How Bullion is Made
To make bullion you have to break a few eggs – er, rocks! It starts with mining, extracting gold ore from the earth. Gold ore is a combination of the gold metal and surrounding mineralized rock. Gold is then extracted from the ore using extreme heat and chemical processes. The gold is then shaped into bars or ingots of the desired size. These gold bullions can also be called “parted bullion” referring to the gold having been ‘parted’ from the ore.
What’s the Difference Between Coins and Bullion
The main difference between gold coins and bullion is in their use. Gold coins are minted by a government mint and usable as legal tender. Gold bullion meanwhile is typically minted by a private mint and therefore not usable as legal tender.
Why Use Gold Bullion
Bullion is used for one thing – to keep in reserve to provide stability. Governments and banks will keep their bullion as an asset in reserve because it acts as a hedge against investment risk. People tend to buy gold as a sort of ‘safekeeping’ way of storing their wealth. A precious metal like gold can rise in value when economies are struggling or hit hard, making it a great asset to keeping value in uncertain times.
The Value of Gold Bullion
We have discussed the price of gold previously and our readers know that the spot price of gold changes constantly. It is always in flux.
How Do You Buy Gold Bullion
At Stewart Kuper Jewelers we don’t deal in gold bullion. If you are interested in buying gold bullion, look for one of the recognized markets to make sure you’re buying reputable gold.
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