Bullion refers to any precious metal in a form where its primary
value comes from the worth of the metal it’s made from, and not
from an artificial currency value. Bullion is most often traded as
a commodity or as coins minted by national governments, or in
bulk ingots.
Governments issue coins which have a nominal value assigned to
them when they are minted, this value is virtually always clouded
by the commodity value of the metal itself. For example, most
government issued gold coins have a currency value of between
$10USD and $100USD, but normally contain at least one troy
ounce of gold, Silver, Platinum or the metal they’re minted in.
Given that the exchange rate of gold, Silver or any commodity
rises and falls over time, as do other things in the stock market.
They are a good investment, and better than most because of
their stability. From the beginning of the twenty-first century
as an example, Gold was worth about $350USD per troy ounce,
at the closing of the market on 8/1/08 it’s value was $912.50USD,
and in contrast Silver a year ago was woth $12.00USD and closed
on 8/1/08 at $17.47. So it can be can seen that the government-
assigned currency value of a bullion coin is essentially meaningless.
The value of bullion is determined by three factors: the metal, the
weight and it’s purity. The metal the bullion is comprised of is
obviously important in determining its overall value …
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Tags: Bullion what is it, Silver, silver bullion coins, Silver Dollar, Silver Eagle, silver investing
