Strictly defined, bullion is a mass quantity of a purified precious metal. During the early stages of civilization, tribes valued rare metals for their reactivity, luster, and malleability. The most well-known kind of bullion is gold. However, platinum, silver, osmium, palladium, and even iridium bullion can be found. Since bullion metals tend to be nonreactive with oxidizing elements in the atmosphere, they can be stored practically indefinitely. The largest storehouse of gold bullion in the entire world is located in Fort Knox, Kentucky. Some nations actually make coins directly from bullion. For instance, the U.S. has a $10 gold bullion coin. Curiously, the actual money value of this coin in gold is worth about 10 times as much as its value as currency. China and Australia are also known for having large stashes of gold bullion. Be wary of any dealer who claims to have a 100 percent bullion coin or ingot. Given the exceptional engineering difficulties associated with rare metal purification and processing, the purest bullion can only be about 99.99 percent pure. Typically, when catastrophic events traumatize the market, investor interest in gold bullion and other fundamental commodities rises significantly. For instance, in the wake of the September 11 attacks on New York City, the gold bullion market spiked. Similarly, during the July 7, 2005 terrorist bombings in England, the bullion market went way up for the day. Despite the proliferation of so many gold bullion coins, ingots, and bars, collectors tend to enjoy trading and pricing silver bullion far more. |
