Gold has long been regarded as a reliable store of value, particularly during times of uncertainty. As more people look to protect their wealth, interest in physical gold, particularly bullion, continues to grow. But before you buy, it’s essential to understand what gives gold in bullion form its value and how pricing works in the market.
In this article, we’ll break down how gold bullion is valued and guide you on where to buy it safely and confidently.
Key Takeaways
Gold in bullion gets its value from purity, weight, and the global spot price, with premiums added for mint, product type, and market demand.
The spot price serves as the foundation for gold pricing, but buyers pay additional premiums that cover minting, packaging, and dealer margins.
Macroeconomic factors, such as inflation, interest rates, and central bank purchases, directly influence the value of gold in bullion.
Safe purchasing options include trusted online dealers, local bullion shops, and financial institutions.
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What is Gold Bullion?
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Gold bullion is physical gold that comes in the form of bars, coins, or rounds, primarily used for saving or investing, rather than spending. Gold bullion, or gold in bullion, comes in the form of bars, coins, or rounds, primarily used for saving or investing, rather than spending.
1. Common Forms of Gold Bullion
Now that you know what bullion is, let’s look at the most common forms it takes and how each one is used for investing.
Gold Bars – rectangular pieces of pure gold, often sold by weight.
Gold Coins – legal tender coins made of pure gold, like the American Gold Eagle or Canadian Gold Maple Leaf.
Gold Rounds – they resemble coins but are not official currency.
2. Purity Standards
Before buying any gold product, it’s essential to understand how purity is measured and what those numbers mean for your investment.
