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Buying and Selling Gold: What is Bullion?



Buying and Selling Gold

If buying or selling gold, one option is to buy or sell gold in the form of gold bullion.

The current instability in the economy and uncertainty of things to come means that investors have rallied around traditional safe havens such as gold. As such, one key investment to consider is an investment in gold bullion itself. You can then sell this gold at the right time to Gold buyers Sydney to get your desired return.

Buying and Selling Gold: What is Gold Bullion?

Gold is often incorporated into other objects of worth, such an item of jewellery, watches or other objects of artistic value. However, for the person who wishes to invest, solely in the underlying asset of the gold. An investment in gold bullion may be the best option.

In short, gold bullion is any form of physical gold which is traded for its value as gold, rather than for any added value properties, such as is the case with jewellery or collectable coins. Gold bullion takes a wide range of range of formats from bullion grade antique coins such as the Sovereign to modern gold bars and ingots.

Buying and Selling Gold: Types of Gold Bullion

If buying of selling gold bullion, here a just a few of the options available.

Bullion Grade Coins – Well known examples include the British Sovereigns, Swiss Francs and Dutch Guilders. The main advantage of such coins is the aesthetic value of the coin and the wide spread recognition of the coins as a unit of bullion. The small size of the coin also gives the seller a greater deal of flexibility, than if larger unites of bullion are purchased.

Modern Coins – Modern coins, which include Krugerrands are based around the concept of providing the market with an easy to value gold bullion unit. The standard coin is a 1 troy ounce offering, thus the spot value of gold on the day reflects the value of a 1 ounce coin. Modern coins are also produced in fractions of an ounce, with half ounce and quarter ounce coins being common place. Most countries produce a modern one ounce coin a few are illustrated below:

  • South Africa – Krugerrands
  • UK – Britannia’s
  • USA – Eagles
  • Canada – Maple Leafs
  • China – Pandas

Bullion Bars and Ingots – These are the most famous of all the forms of gold bullion. Sizes range from the gigantic brick sized bars stored in central banks to tiny novelty bars designed as gifts, rather than investments. Bullion bars can often be the cheapest way to invest in gold. However, the size of larger bars can lead to limited resale options and an inability to sell smaller qualities of gold if desired.

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