How Does The Bullion Market Work?
The gold bullion market is based on the current gold spot price, which represents the cost of one troy-ounce of pure gold. The troy-ounce originates from the Ancient Roman monetary system, and represents one-twelfth of a pound, rather than the one-sixteenth of a pound that most of us are accustomed to using.
Gold bullion is classified as “gold in mass”, and is minted in 24-karat bullion bar, and 22, and 24-karat bullion coin form. Technically, Austrian 100 Coronas are 21.6-karat coinage, but modern bullion coins contain a full troy-ounce of pure gold, and are largely used as either short-term profit vehicles, or as diversifications for long-term, rare coin holdings, which command substantially higher premiums.
The bullion market generally offers one-ounce, ten-ounce, and 1-kilo, 24-karat gold bars, and investors are hereby encouraged to purchase reputable brand names for their bullion bars, which include Engelhard, Johnson Matthey, Credit Suisse, and PAMP Suisse, for guaranteed purity. Bullion bars’ utter simplicity maintains their prices at just above current gold spot price levels, while bullion coins’ prices are a bit more costly. Naturally, 24-karat bullion coins like Canadian Maple Leafs, or American Buffalos, command higher prices than 22-karat American Eagle bullion coins, but both types of coinage still contain a full troy-ounce of pure gold.
Other globally popular 24-karat gold bullion coins include Australian Kangaroos, Koalas, and Lunar coins, as well as Austrian Philharmonics, and Chinese Pandas. All of the aforementioned bullion items are also U.S. government-approved as precious metals-backed IRA contributions.
Prospective buyers can avoid paying extortive retail prices for their bullion bars and coins by contacting one of our friendly specialists, who offer institutional discounts on these, and many other precious metals items to household investors like you.