Apr 2012


Apr 2012

Gold Bullion

By StoneX Bullion

Gold Bullion Forms

Gold bullion is produced under two forms of coins and bars available to investors and people that want to add another asset to their portfolio for diversification and safety and also to persons that just a want profit from speculating on the evolution of gold. These two forms are purchasable under different weights, sizes, purities, and denominations.

It is also available under the form of futures and options which are mainly addressed to people that are actively involved in trading and make a profit on the base of speculations.

Numismatic coins and jewelries are not included in the category of gold bullion because in its definition does not involve any artistic manufacturing, it is only gold produced in its purest form. The precious metal smelted and refined in order to be used in manufacturing bullion coins or bars it is also what gives the value of the forms in which is available. Therefore, investors will benefit from the intrinsic value of the gold content.

If you orientate yourself towards investing into gold bullion you should know that its price is called gold spot price and it is announced twice a day, at the opening of the market and at its closing there is another price formed. The gold spot price is formed under the influence of supply and demand, a phenomenon valid for all commodities, and it is also found under the influence of speculations made by global gold traders.

There is also another price, the benchmark price which is fixed also twice daily during a meeting between 5 representatives of major traders, taking place in London. The price of gold bullion is in its essence how many US dollars you require in order to buy one troy ounce of gold. Therefore, it is also an indicator for the evolution of the US dollar.

Gold Bullion as Coins

When it comes to gold bullion produced in the form of gold coins the main thing about them is that they require less substantial funds when making an investment compared with gold bars. It is a beautiful way for an investor to have as an asset physical gold. Their price is established by adding a small premium to the gold spot price therefore their price also fluctuates. As a consequence, investors should choose their time well, whether we are talking about coins or bars.

Gold bullion coins are mainly bought for their high purity and the one with the highest purity 99.999% is the Canadian Mountie minted by the Royal Canadian Mint and other coin preferred by investors, minted by the same mint, is the Canadian Gold Maple Leaf. The Krugerrand is the most bought gold coin and it has been produced in an impressive quantity of 1,400 tones.

To sum up, when it comes to gold bullion coins, investors have a wide variety of opportunities from which to choose.

Gold Bullion as Gold Bars

Gold bullion bars are very easy to purchase. All you need is a quite large quantity of funds and a good dealer. You should do your research well regarding the person from which to purchase gold bars.

Another important thing about gold bullion bars is that they have four inscriptions that should be checked: the serial number, the weight which is expressed in troy ounces, the gold makes, and the purity percentage which is the same on all of them 99.98%.