Whether you are a novice coin collector or an experienced numismatist, research is the most important part of any gold bullion purchase. That is because it helps you not only make wiser financial decisions but also uncover the story behind your investment. To get started, consult a dealer like Coins Plus in Cincinnati, OH. Their knowledgeable team will give you a simple, yet thorough, introduction to this precious metal.    

Gold Bullion: A Guide

What Is Gold Bullion?

Think back to your favorite bank heist movie. Chances are the film showed stacks of shiny gold bars. Those were gold bullion — or at least one kind. Generally speaking, bullion is a precious metal that is at least 99.5% pure. It is often in the shape of a bar or ingot but now most often comes in coin form. Some of the most popular gold bullion coins are the American Eagle, the Canadian Maple Leaf, and the Chinese Panda.

Gold bullion is not considered legal tender, but it is often used by banks, refiners, and fabricators for trade on the market. Private individuals can also buy bullion as an investment or potential store of value.       

How Is It Priced?

The spot price of gold refers to the current market price of gold on a contract. It is derived from the average of the net value of all currently traded gold futures contracts for the nearest month. The price of gold bullion is higher than the spot price due to processing and manufacturing costs as well as a profit for the dealer.  According to the Coins Plus team, this price may change as the spot price of gold fluctuates.  

Is It a Smart Investment?

The practicality of gold bullion depends on your budget, current portfolio, and other personal factors. But, by and large, it is a safe way to store value. Unlike paper currency, gold has maintained its value for decades, so you can easily pass on and preserve your wealth. Likewise, it acts as an excellent hedge against inflation. Lastly, because stocks and gold bullion are not closely correlated, this precious metal will diversify your investment portfolio.

If you have any other questions about gold bullion, call Coins Plus at (513) 621-1996. Their coin dealers have a combined 100 years of experience and will help you navigate this complex market. They also offer coin buying and selling services to serve all your numismatic needs. Visit them online for details.