Introduction to Buying Gold Bullion
Gold has long been treasured by humankind for its striking appearance, inherent, yet fluctuating value, and for its myriad of uses. Buying gold bullion has many potential benefits alongside potential risks. Before you start building your gold stack, its important to understand the basics.
Why Buy Physical Gold Bullion?
Gold bullion has plenty of qualities that make it appealing. Just in case you’re new to the wide and detailed world of coins and precious metals, gold bullion is gold in its physical form. Bullion can come in the form of a bar, a coin, or even a round. The gold bullion price is known as the spot price, and this varies during trading hours each day. For more information about Spot Price, Melt Price, Premiums, and more, read this Info-Vault article.
As for the qualities that make physical gold appealing, they are numerous. In addition to its value, gold bullion simply has eye appeal. It just looks good whether it’s a bar or a minted coin with an intricate design. Many also appreciate having the ability to hold their gold as opposed to owning it on paper such as with an Exchange-Traded Fund (ETF).
Types of Gold Bullion
Unlike silver, gold bullion rounds are scarcely produced. The overwhelming majority of available products are gold bullion coins and gold bullion bars. What separates a gold bullion coin from a round is who minted it and whether it has a face value or not. A coin must be issued by a government and has a face value. A round can be struck by any Mint and does not have a face value.
Some prefer bars because of their shape. This makes them very easy to store. Gold bullion bars also tend to have reasonable premiums. Depending on the specific products you’re looking at, they may offer more value for the price. Additionally, when gold bars are new from the Mint, many of them are sealed with an assay card. This card displays information about that specific bar, such as its weight, purity, and serial number.
Gold bullion coins tend to come with higher premiums, but they offer a quality gold bars do not. Gold coins can have collectible value in addition to their bullion value. A key date 1 oz. American Gold Eagle has the same amount of gold as a 1 oz. gold bar, but it can be worth more depending on its year of issue and mintage.
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