Understanding the Bullion Market

Understanding the Bullion Market

Coins or bars containing palladium, gold, platinum, and gold are referred to as "bullion." Because a coin's intrinsic value is what determines its value, daily bullion prices fluctuate directly with global spot market prices. It's easy to buy, sell, and keep an eye on prices.

Every day, the global markets determine the spot prices of precious metals. The spot prices for the day can be seen here.

One troy ounce serves as the foundation for the listed spot price. The size of a bar can range from one gram to hundreds of ounces. Although there are coins in larger denominations, the majority of coins range in size from one tenth of an ounce all the way up to one ounce.

The spot price of various goods can be traded for a variety of premiums or amounts. For instance, the American Gold Eagle listed next to it is more expensive than the gold bar shown above.

The product's open market demand typically drives these premiums. Because premiums are added to cover manufacturing and distribution, no one can buy gold or silver spot price. On the wholesale market, bullion is more expensive than spot.

Why should I buy actual coins?

Physical bullion does not have debt, a board of directors, or counterparty risk. You can hold this genuine wealth, and its value will never decrease. By purchasing bullion, you can bet against potentially destructive global fiscal policies and remove some of your wealth from the global financial system.

For more than three thousand years, gold and silver have been used as money stores. Gold and silver safeguard wealth when all other options fail, even if every paper currency eventually devalues to zero.

Compared to holding precious metals mining stocks or ETFs, physical bullion provides significantly more privacy.

Metals prices fluctuate independently of stocks, bonds, and real estate, providing significant stability and profits in times of poor performance for other investments.

Understanding the Bullion Market Gold has been an integral part of the global financial system for a long time. The price of gold experienced one of the most spectacular runs of any major asset class in recorded history, roughly from 1971 to 1980. This was an increase of 2,300%. We believe that gold appears to offer greater value than ever before in this era of unprecedented global debt.

Most importantly, owning physical precious metals gives you a more private way to pass on tangible wealth to future generations than any other investment class. You can now acquire an unlimited quantity of physical bullion in complete secrecy. You are not required to provide your Social Security number in order to open an account, and we are not required to report your purchase to the IRS or any other government agency.

However, when you sell back to us, certain kinds of bullion must be reported to us. Please let us know if you value your privacy so that we can steer you away from those products. The ICTA reporting requirements can be found here.

Which kind of coin works best for you?

Having a well-thought-out plan in place from the beginning to the end is the key to success. Our expertise may be of great assistance in this situation. Numerous precious metal-based products are available; Which ones to keep is a personal choice that needs careful consideration. In light of this, you will learn about the three aspects of the bullion market that are essential to your portfolio in the sections that follow: bars and coins crafted from contemporary gold and silver, as well as Canadian gold.

Do you require additional assistance? We will be able to provide you with the most effective plan for your specific goals and objectives in a matter of minutes if you simply fill out this form or call us.