Gold Bullion

Gold bullion is defined as ingots, nuggets, or bars of the metal refined to great purity. Australia and China are some of the biggest gold bullion producers in the Eastern Hemisphere. Many countries invest in gold bullion coins because these coins are perceived to be economically stable. Gold coins may oftentimes be worth more for their pure gold value than for their currency value. A case in point is the U.S. $10 gold coin, which was minted in 2004. This $10 coin contains almost eight grams of gold. It is worth well over $100.For decades, individual investors, private businesses, and indeed entire countries have invested in gold bullion. The United States government originally tried to keep the price for gold bullion steady to prevent inflation or currency runs. During 1934, in the heart of the Great Depression, the U.S. capitulated and allowed gold to rise to $35 per troy ounce.In the 1960s, the U.S. could no longer contain the price of gold by itself and turned the task over to a conglomeration of European and United States banks. Together, these institutions defended the price of gold bullion. However, in May of 1968, this pricing scheme for gold collapsed, and gold bullion valuation was de facto handed over to the free market.Gold bullion storehouses abound the world over. The largest is Fort Knox, a property of the United States Federal Reserve Bank. While gold bullion remains the 'workhorse' of the precious metals commodity market, many collectors and private investors prefer to speculate and invest in the silver bullion market, since fewer people compete over silver.