Gold Bullion

You’ve most likely dreamed of it as a child. After seeing it on pirate shows, reading about it in treasure hunt books, learning about it in Australian history…

Having the chance to hold a big chunk of gold is something that nobody would turn down.

Well, it turns out there are actually big chunks — or bars — of gold, which are used for trade in the market.

They call them bullions.

It comes from the old French term bouillion, meaning ‘boiling’. People used it to describe a melting house.

And that tends to be the end point for these gold bars…once they’ve changed enough hands, of course.

Central banks tend to be holders of the Good Delivery gold bar — a 12.4kg hunk of perfection that sits as reserved assets.

Alternatively, the kilobar — where its weight is in the name — is what is usually used for trading and investment. The premium of these bars is low compared to the spot value of gold, so its perfect for smaller transfers between banks and traders.

Investing in Bullions

The value of a bullion is based on the purity of its metal. In the EU, the minimum purity for a gold bullion fit for investing is 99.5%…so pretty close to perfect.

Imagine getting your hands on such pure gold!

As an investment, gold bullion is popular for many reasons.

It can be used to hedge against inflation risks, geopolitical and currency risks, while also adding diversification to your investment portfolio.

Many market sectors are in on the gold bullion trend as well, including banks, fabricators, refiners, and of course, brokers.

Gold for the potential

In times of increasing economic uncertainty, such as we are in now, gold bullion can work well to provide a sense of security. Especially as cash is now becoming rarer and rarer, it is important to have a physical store of wealth in hand in times of crisis.

Before investing you should consider carefully the risks involved. If you have any doubt as to the suitability seek independent financial advice.

Bullion investments are seen as an insurance against inflation or economic upheaval.

Seriously, who wouldn’t be better off with a block of gold in the safe?

At Money Morning, we have a handful of gold experts who can provide insight into when to buy bullion and how to get the best deal.

With updates daily, you’ll get the best chance to secure a physical piece of that leprechaun’s cauldron.

The Fed Reignites Gold

It makes sense that gold would start to rally if interest rates are going to stay lower for longer. If the recent weakness in economic data worldwide continues, gold may even become a safe haven investment again.

Why Gold’s Not Worth the Paper It’s Written On

The gold us ordinary people are mostly allowed to access is ‘fake gold’. Like our paper system of money, it’s built on a system of trust. With central powers lying at the heart of it all. This ‘fake’ gold market is worth $7 trillion.

Why Trump Could Be Good for Gold

Yesterday I discussed the gold price and provided some reasons as to why the yellow metal could move higher in the months ahead. Let me emphasise the word could.

Why the Gold Bull Market Is Set to Continue

Aussie gold stocks have outperformed strongly during the market’s recent convulsions. They are a great hedge in times of increasing economic uncertainty like we’re in now. The bull market conditions are set to continue for gold. The Aussie dollar gold price is approaching $1,750 an ounce, the highest price since mid-2016 and enough to fatten most well run gold miners’ margins.
Money Morning Australia