Gold has been seen as a way to invest money for a long time. One way to invest in gold is to buy gold jewellery, but a more simple, and safer, way is to buy bullion gold from bullion dealers. Bullion comes in the form of bars, coins or ingots, and is basically pure gold that is usually traded on commodity markets. The value of gold bullion depends on the gold content it contains (for most bullion dealers this will be 24 carat gold, as this is the most valuable and pure), and what the size and weight of the bullion coin or bar is. They come in many different weights, depending on how much someone wants to invest.
Are you going to buy or invest in Bullion Gold? There are several ways to invest in or own gold. Always keep in mind that precious metal prices can also fluctuate, just like other investments. When investing or buying physical gold, this also means that there is a risk of loss. Keep that in mind.
When you are in search of Bullion Gold, you will propably run into the term: "Ingot". This term is used for gold poured into a shape. An ingot is typically rectangular, ideal for stacking the gold during transportation. The process of making these rectangular ingots is over a thousand years old, and still being used. In 1987 the LBMA (London Bullion Market Association) was founded by the bank of England and regulates the market ever since.
They have drawn up rules to which Ingots are bound, known as: "Good Delivery Rules". Gold bullion bars require the LBMA to consist of 99.5% pure gold, i.e. 995.0 parts per thousand fine gold. It is the industry association for the over-the-counter gold and silver market in London. The association is responsible for regulating refinement standards, commercial practices and the certification of the precious metal used to make gold bars and coins.
The main difference between bars and ingots is their sizes. Ingots are the molds that larger bars are cast in, and bullion bars tend to be smaller, and are often just minted separately. When you see big bars of gold in movies, these will be ingots because of their size, and would be highly valuable. However, you can buy bars that weigh as little as a gram.
Bullion coins are considered to be easier to invest in and trade with, purely because they are smaller and therefore easier to sell if you find you need to access some cash quickly. They are closer in looks to bullion bars than they are to normal currency, although they are considered legal tender in some countries (such as the Gold Sovereign in the UK). Mints will produce these coins, which are different for certain countries, such as the USA's Gold Eagle, the UK's Gold Sovereign and Britannia, and the Canadian Maple Leaf.
There is only so much gold in the world, and therefore it will always hold its value to some degree, which makes it a relatively safe investment, and more desirable to own. However, money is produced all the time, and the value of different currencies changes every day, as do stocks and shares, so many investors prefer to put their money into something more tangible, like gold bullion. When buying gold jewellery, some of the value is held in the design and craft of the piece, and could go down in value, depending on how current the style is, plus it's more likely to hold some sentimental value. Whereas a bullion's value is entirely in the gold content, and has nothing to do with how it looks. Bullion gold is purely purchased as an investment.
Bullion dealers buy and sell bullion gold, so it's fairly easy for people to invest in, as long as they have the funds to buy it. Reputable dealers will follow the standards set by the LBMA (London Bullion Market Association), which are named the Good Delivery Rules, and are internationally recognised. This ensures you receive bullion gold that is correctly hallmarked, stamped with a serial number, and contains the minimum purity of gold. Buyers will be charged a small percentage on top of the bullion price, both when buying and selling, depending on how much is purchased. The more someone buys, the lower the percentage they pay.
Investing in bullion gold is becoming more and more popular, and people are realising that it's a smart way to invest their money, which only makes it more sought after and increases the value of gold even further.
You will be amazed by all the opportunities to buy bullion gold loacally, also near you! Find locall gold dealers near you, search for dealers by continent or sorted by country. Use buttons below to see the list you like most, and find the gold dealer that suites you. (Propably because it's near you) But why sticking with the local gold dealers? These days also in the bullion gold business, it is quite common to order your gold at a online "bullion gold dealer". A local gold- dealer/shop near you, might be a good one. But is their price competitive?