In the world of precious metals, bars and coins made of pure gold or silver are known as "bullion". These are preferred investment assets for private investors and for countries around the globe. How does one determine what is "bullion", what is the difference between bullion for investment and bullion for collecting, and how does one go about purchasing them?


Often, a way to invest in precious metal is to buy gold and silver in their pure form, when they are not alloyed with any other metal. This is how leading private investors around the world do, in the same way as do many of the states that hold gold, such as the United States of America, countries of Europe, China and Russia. The professional term that describes assets made of pure gold is bullion. Gold and silver are mined from within the earth when they are combined with different materials, such as minerals. In order to cast bullion, the precious metal must be refined. A main reason for preferring to invest through bullion is that holding physical assets allows the investor to move with them and sell them anywhere in the world, at any time. Most of the assets in the precious metals market which, as said, are only derivatives of the prices of the physical metals, do not provide these significant advantages.

 

Bullion for Investment

Bullion for investment refers to a quantity of refined precious metal in a defined weight, which can be purchased at close to the price of the metal on the world market. This is a recognized concept among those who invest in precious metals, including gold, platinum, palladium and silver. Bullion can be acquired in two main forms – as coins and bars.

 

Bullions for InvestmentPictured: Bullions for Investment - Bars and Coins – issued by The Holy Land Mint and other World mints.

 

Bullion is tested according to its degree of fineness and weight:

  • The fineness of bullion is measured as a percentage. The fineness should be at least 99.5% pure. On the Israel Coins and Medals Corp. website, you'll find gold and silver products with a .999 fineness, which means that the precious metal has been refined to a degree of 99.9%.
  • The weight of bullion is usually measured in ounces, an ounce being equivalent to approximately 31 grams. The wide range of weights, starting with a few single grams, makes it possible for an investor in bullion to start with relatively small purchase amounts.

 

The leading markets for bullion trade are in London, New York, Tokyo and Zurich. In Israel, the leading website for trade in bullion is the Israel Coins and Medals Corp. website, on which precious metal prices are based on the world exchange prices. This means that one who purchases a bar or coin for investment or other assets made of fine gold and silver, can be assured of their high level of tradability around the globe, whether in periods of highs or lows in the metal prices.

Incidentally, if you are wondering what the meaning of the word "bullion" is, you may be interested to know that the root of the word comes from old English and French, stemming from two French words "billet", meaning a banknote, and "bouillon", meaning boiling hot soup – which refers to the melting process of precious metal.

 

Casting of GoldPictured: Casting of Gold.

 

Bullion for Collecting

Special bullion often also includes a high collector value. For example, on the Israel Coins and Medals Corp. website, you'll find some prestigious series of bullion meant for collectors that also arouse great interest among investors.
The uniqueness of these series creates an opportunity and adds value for investors, since collector interest increases their value to a level beyond the market price of an ounce of gold or silver.

The "Jerusalem of Gold" Bullion Coin Series issued by the Bank of Israel in limited mintages includes one-ounce coins struck from fine gold .999. The unique bullion coins in this series are legal tender in Israel. That is to say that they are official coins of the State of Israel with a 20 Shekel face value.

The bullion coins in the "Jerusalem of Gold" Series have been issued annually since 2010 and they feature a variety of subjects connected to Jerusalem, from the Tower of David to the new train to Jerusalem. These bullion coins have very high collector value and are therefore worth more than the market price of an ounce of gold.

 

Train to Jerusalem Bullion

Pictured:  The Holy Land Mint "Train to Jerusalem" Bullion, 10th in "Jerusalem of Gold" Series 

 

In the investment category on ICMC's website, you can select the products you would like from The Holy Land Mint gold and silver investment products, which are produced by Israel Coins and Medals Corporation. The wide product selection, including weights ranging from one-gram to one-kilo, provides an opportunity for beginner investors to learn, make first investments with ease and with small sums. Alongside ICMC products, you will also see a choice selection of investment products from the leading mints of the world.

 

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The information contained in this website should not be construed as investment advice or as a substitute for investment advice suited to your own individual financial needs for purchase or investment, investment activities or transactions, or as recommendations or opinions as to the benefits of investing in gold or in any other specific products. The information contained in this website does not constitute an alternative for investment advice and you should not act upon it, before seeking advice adapted to your own personal situation and needs.