Gold Investment - Gold Bullion

Gold bullion is a precious metal that mainly comes in two forms, namely: Gold bullion coins and gold bullion bars (gold bars).

A precious metal from an elementary point of view:

• is any metal which is not radioactive, 

• has a high melting point, 

• occurs naturally and 

• is rare to find, which gives it a high economic value. 

Given the above, it is therefore not strange to find gold, silver, palladium and platinum among the precious metals.

Gold bullion, with the above in mind, simply refers to any form of gold of which the value is almost entirely made up of gold. Almost entirely, because gold bullion in even its purest form, is not 100% made up of gold. The reason for this is because pure gold (24k) is relatively soft and needs to be alloyed with base metals such as copper to make it suitable to use in jewellery, et cetera.

For example: A gold bullion coin or gold bullion bar with the highest grading in terms of purity, which is 999.99, only consists 99.99% of pure gold and is therefore not entirely made up of gold.

In addition to the above, gold bullion coins or gold coins with collector's value connected to it, besides the value of the gold, also plays a role when it comes to the value of gold bullion. 

For example: A higher value is placed on rare gold coins than gold coins minted in high quantities.