Most people make the mistake of thinking that gold or silver coins are not considered “bullion”. This is is a misinterpretation that we at Accurate Precious Metals would like to correct.
The dictionary defines bullion as “gold or silver considered in mass rather than in value”. Bullion is gold or silver that has been refined and then stamped. The majority of the consumers that purchase bullion do it for investment purposes. It is a great alternative to paper assets as it is a physical object and adds to the credibility of your fortune. The great thing about owning bullion rather than currency is that currency is always going to be worth the same amount. A $100 bill will always be worth $100. A gold bar or coin might be purchased at $50 and in a few years the price of gold may go up. So that $50 bar could be worth $75 later on down the road.
There is a difference between gold bullion bars and gold bullion coins. When you have bars, shape isn’t an issue. With a coin, they have to be round and because they are more prone to wear and tear, alloy needs to be added to the coin which makes the coin only about 92% gold. However, the upside to having coins instead of bars is that they are easier to liquidate than gold bars. Because they are smaller, they are easier to melt down so you would be saving some production costs by having coins instead of bars.
Interested in learning more about Gold Bullion? Contact us today!