What Is Bullion?
The dictionary definition of bullion is any precious metal that is valued by weight. An example of bullion would be an assayed gold or silver bar. They are made from either pure gold or silver and have been examined by qualified experts to verify the fact that they are in fact pure rather than mixed with other metals.
You will find bullion traded as ingots, coins and bars. Any other form of precious metal, such as jewellery is not classified as bullion. The value of bullion is affected by its purity, weight and the metal it is made of.
Why Buy Bullion Rather Than Other Kinds of Precious Metal?
If you are buying precious metals such as platinum, gold or silver as an investment it is important to buy it as bullion rather than in any other form. When you buy bullion, you get true value for money.
If you buy jewellery or commemorative coins, you will be paying a premium over and above the value of the precious metal they contain. This means that you are wasting some of your money. By buying bullion, you get more in terms of weight of the precious metal than you get when buying jewellery or something similar.
Where to Buy Bullion
It is important that you buy your bullion from a reputable dealer. That way you can avoid buying ingots or coin that have been mixed with non-precious metals. The ingots that you buy should be stamped with an assay stamp. If you are buying bullion coins, buy them only from authorised dealers. In the UK, the Royal Mint maintains a list of reputable dealers who are authorised to sell the coins that they produce.
Never, ever buy bullion that is priced well below the current market value for that particular precious metal. There is no way that a reputable dealer is going to give away their products. The fact that it is priced below the market value is a good indicator that it is fake or has been stolen. If your bullion is to be sent to you, make sure that it is sent via an insured method.
Bullion By Post provides an easy way for everybody to buy bullion. They are authorised Royal mail, Umicore and Metalor dealers.
