These days, many investors are turning to gold bullion to diversify their portfolios. Even central banks and governments rely on these coins, bars, and ingots as stable reserves. If you are interested in investing some of your own wealth in this trusted tender, use the following guide to learn more about bullion.

What Separates Gold Bullion From Gold?

While gold can vary in purity, it must be comprised of at least 99.5% pure gold to be officially recognized as bullion. Normal gold can be used to make a variety  of objects, from rings and necklaces to edible gold leaf, but bullion is only found in bars, ingots, and coins. 

The valuation of gold bullion also differs from that of standard gold. While gold objects might derive some of their value from their design, aesthetic beauty, or functionality, bullion’s value is directly attributed to its investment demand. That is why it is sometimes used as legal tender, such as by central banks or investors. 

What Are the Advantages of Investing in Bullion?

While around 20% of gold is stored in central banks as bullion, virtually anyone can invest in some gold bullion of their own. In fact, many investors rely on it to stabilize their wealth. That is because tangible objects like gold bars and coins are not subject to the fluctuations of the stock market, as stocks and bonds are. The value of gold is relatively reliable, so investors can protect themselves against crashes or recessions. 

Compared to bars, gold coins are appreciated for their more interesting appearance and varying designs. Additionally, since they are issued by the government and can be used as legal tender, gold coins are easier to buy and sell. 

If you are interested in investing in gold bullion, head to Coins Plus of Cincinnati, OH. This local coin dealer has been around since 1972 and is the city’s only American Numismatic Association award-winning and Professional Numismatists Guild dealer. They can buy, sell, and appraise coins, so you can depend on their expertise whether you are growing or liquidating your collection. To learn more about their skills, visit the website or call (513) 621-1996 to speak with a team member.