Bullion
Precious metal in bulk investment form, such as bars and coins, valued mainly by its weight and purity.
Bullion is precious metal in its investment form, bars, coins and rounds, valued for what it is made of rather than how it is crafted. Investment gold bullion is typically 99.9 percent pure, and its worth is set almost entirely by its weight and purity at the current metal rate, with little added for design. It is the raw material that jewellery is made from and a reference point for the metal cost inside every piece.
What counts as bullion
Bullion comes as cast or minted bars, coins and rounds, usually stamped with their weight and purity. Investment grade gold is normally 999 or 999.9 fine, and it is bought and sold close to the spot metal price. The whole point is metal content, so unlike collectible or numismatic coins, standard bullion carries little premium for rarity or craftsmanship.
Because value tracks weight and purity, bullion is priced per troy ounce or per gram of pure metal. A one troy ounce 999 gold bar is worth essentially its 31.1 grams of pure gold at the current rate, plus a small dealer premium for fabrication and handling.
- Comes as bars, coins and rounds.
- Investment gold is usually 999 or 999.9 pure.
- Valued on weight and purity, not craftsmanship.
- Traded close to the spot metal price.
How bullion relates to jewellery
Bullion is where jewellery metal begins. Manufacturers buy pure gold bullion, then alloy it down to 22K, 18K or 14K to make wearable pieces. So the bullion price, driven by the spot rate, is the base cost that flows through purity and weight into the metal value of a finished piece.
It also gives buyers a reference. Because a bullion coin is priced almost purely on metal, it shows the raw gold value with none of the making charges, wastage or design premium that a piece of jewellery carries. That makes bullion the cleanest way to hold gold purely as an investment.
- Bullion is precious metal in bars, coins and rounds.
- Investment gold bullion is typically 99.9 percent pure.
- It is valued on weight and purity, near the spot price.
- It is the raw material and price reference behind jewellery metal.
Bullion, in short.
What is the difference between bullion and jewellery?
Bullion is valued almost entirely on metal content and high purity, with minimal premium. Jewellery adds design, making charges, wastage and often lower karat alloys, so it costs more than its raw metal value.
How pure is investment bullion?
Investment gold bullion is typically 999 or 999.9 fine, meaning 99.9 percent or higher purity, which is why it trades close to the pure gold spot price.
Why do people buy bullion instead of gold jewellery for investment?
Because bullion carries little premium over its metal value, so more of the money buys actual gold. Jewellery adds making charges and design costs that are hard to recover on resale.
Related terms
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