Gold Bullion is valuable precious metal – namely gold or silver. It comes in two main forms :- Gold bullion bars, and Gold bullion coins. What makes it gold bullion is simply that its value derives entirely from its precious metal content.
Unlike jewelry, or numismatic coins, gold bullion has no artistic component in its value. Some people do not understand why without that artistic component a relatively useless material like gold should have such a high value. To understand that you need to understand gold’s monetary role.
If you want to buy some gold bullion these days it is relatively easy to do so.Gold bullion coins trade quite close to the world gold price, but you will still pay a premium of perhaps 4% when you buy in quantity, and usually 8% when you buy smaller amounts. You should expect to suffer a similar 4-8% discount when you sell gold bullion coins back to the dealers too.
Bullion bars come in many sizes. Bought from private suppliers for private possession you will usually pay dealing costs similar to those for bullion coins.
Gold bullion bars can weigh anything from a few grams upwards. 1kg and 100 oz (~3kg) bars are sometimes accepted by participants in professional bullion markets in Zurich and New York – though under strict controls to ensure bullion integrity. There is usually a premium on those locations, because London is the world’s main physical bullion marketplace.