12 July 2017, By Mater Lotteries

What is Gold Bullion?

3 min read

The latest Mater Prize Home lottery includes $50,000 worth of gold bullion.  But what exactly is bullion?

Bullion

The term bullion refers to gold, silver and other precious metals (such as platinum and palladium) in the form of bars, ingots (blocks) and coins.

The word bullion is thought to have originated from the French language.

Bars and ingots

The most common image of bullion you’ll see are bars. The difference between a bar and an ingot is its size.

Ingot cast moulds are larger in size, and bars are usually smaller and made by minting or stamping.

You can purchase bullion bars and ingots in a range of sizes and weights from 1g, 100, 500g, 1kg and 12.5kg.

Coins

Various mints around the world produce bullion in the form of coins. The market rate and precious metal content determines the coin value. Coins are considered a more flexible and convenient way of buying gold in relation to being able to make a quick sale in times of need.

Value

Gold bullion value is based on its rarity and purity. All gold bullion must be made from new gold (mints and dealers will not use old gold) and to be suitable as an investment asset it must be at its purist level­—being 24 carat (or 999.9% pure).

Unlike money that can be printed and therefore lose value; gold is a natural metal and is limited in the world. It is said that although gold is not a high-yielding asset (meaning you could make larger sums of money by investing in other assets that are higher risk), gold is an asset whose value will endure.

Why trade bullion?

You may choose to invest in gold bullion for many reasons. Bullion is less risky than currency, and you may find it a good way to hedge against inflation and geopolitical risks (remember the GFC?). Bullion can also add diversification to your investment portfolio.

Where to trade/buy/sell bullion?

There are many registered bullion dealers and traders throughout Australia – a simple google search will deliver a handful in seconds. Make sure you your research and look for competitive premiums and commission rates. Secondly, always compare the rate to that of the Australian market.

Gold is also traded on the bullion market and is open 24 hours a day.

The Exchange Traded Funds (EFTs) is a convenient and cheap way to trade. However by purchasing your bullion through EFT, the actual buy is held by a  large global bank (such as HSBC or Morgan Stanley) and not by the provider. If another GFC were to occur, you could see your investment gone. According to Money Morning, there are reports that there are now one hundred times more ‘paper gold’ in the world than physically exists above ground. To safeguard yourself, it is always better to hold the physical asset of gold bullion.  $50,000 worth of actual, physical gold bars will be handed to latest Mater Prize home lottery winner.

Where to store your bullion?

You can invest in a home safe, but a better alternative is to hire a safe deposit box. You can store your bullion with a dealer or private company for a fee. Or, you can use a safe deposit box at a bank. Just be aware that should the bank go bankrupt, your asset may be lost.

How to make money from gold bullion

The aim is to buy when prices are low and sell when prices are high. However much like every other market, timing is everything. You can never predict a crash in the market so gold bullion is ideally a long-term investment asset to hold onto and sell when the time is right.

$50,000 worth of gold bullion could be yours

If you are the lucky winner of the amazing Highgate Hill apartment on offer from Mater Prize Home, you will also be walking away with $50,000 worth of gold bullion.

All you’ll need to do is decide whether to cash it in or hold onto your investment and start your own investment portfolio! What will you do?

All this could be yours from as little as $2.So, Get your tickets today and maybe you will be living this $1.7 million Brisbane lifestyle!

Buy Tickets

 

References:
https://www.bullionbypost.co.uk/index/gold/what-is-gold-bullion/
https://www.moneymorning.com.au/20111210/how-to-buy-gold-and-silver.html
https://en.wikipedia.org/wiki/Bullion
http://www.investopedia.com/terms/b/bullion-market.asp