The market for gold and silver bullion, bullion coins, and bars has become forefront in everyone’s mind. With the growing costs of living, groceries, and gasoline, people continue to decide what they can do to build a nest egg as a hedge against continued inflation.
What is Gold Bullion?
Gold bullion and silver bullion are at least 99.5% to 99.9% pure. The bullion is in a bar or ingot. An ingot is an oblong block of gold or silver. Bullion is a reserve asset by governments and central banks.
Bullion is created after a mining company removes the precious metal from the earth in gold ore. Gold is a combination of gold and mineralized rock. After the ore is extracted from the earth, it goes through a process that uses chemicals and extreme heat to separate the gold from the rock. What is left is “parted bullion.” If gold contains more than one type of metal it is called “unparted bullion.”
Bullion is a legal tender or in other words able to be used to pay a debt. Bullion is often held in reserves in central banks or used by institutional investors as a hedge against inflation. Did you know that about 20% of mined gold is held by central banks worldwide?
The bullion that is held by central banks is used to pay international debts or stimulate the economy through lending the gold bullion. When a central bank lends gold to bullion banks for a certain period, the central bank receives cash for the gold lent. The bank lends the money on the market at a specific rate which is known at the Gold Forward Offered Rates (GOFO).
The bullion bank can either sell the gold or lend it to mining companies. If the bullion bank sells the gold on the spot market, they receive cash for the transaction at that specific period. The spot market is where bullion is traded. If there is an increase in the supply of gold, the market rate is reduced, if there is a decrease in the supply of gold, the market rate increases. When the specific loan period is complete, the bank buys the gold and returns it to the central bank.
The Purity of Gold
Simply said, the purer the gold, the more money it is worth. Gold bars, gold bullion, gold bullion bars, are made of 99.9% pure gold. Gold bullion products bring the most money when you buy gold. They sell for the most money.
Pure gold sells for the current spot price, which ebbs and flows with the market. By 2030, it is estimated that gold will sell for US$ 7,370 per troy ounce. Now that is a return on investment. Gold buyers understand the inherit risks of buying gold and look to buy gold bullion when the price is lower. This is the same when they purchase gold coins. They want to ensure they are buying low and selling bullion high.
Different Types of Gold Bars and Bullion
Gold Eagle and Canadian Gold Maple Leaf Coins and Bars
The United States Mine produced American Eagle Bullion Coins in four weights. They come in ounce, half ounce, quarter ounce, and tenth ounce weights. If the bullion coin has a “W” on it, it was minted in the West Point Mint in West Point.
The bullion coins were authorized to be minted under the Gold Bullion Coin Act of 1986. The observe side of the coin features Augustus Saint-Guardens full length of Lady Liberty. Her hair is flowing, and she holds a torch in her right hand and an olive branch in her let. In 2021, the reserve design features a close up side profile of an eagle.
The Canadian Gold Maples are produced at the Royal Canadian Mint. In 1979, the coin was introduced as a legal tender in Canada. It had a face value of 50 Canadian dollars. The bullion coin was produced at the Royal Canadian Mint. It’s opposite design features the profile of Queen Elizabeth II, and the reserve side has a maple leaf.
Gold, gold coins, gold bullion, scrap gold, and other forms of physical gold can be purchased online from a gold dealer, and from a pawn shop. Some gold dealers have lower premiums. A premium is the fee associated with buying gold bullion, and the cost of doing business.
The value of gold fluctuates, so you want to make sure you buy when the price is low and sell when it is high. Gold, gold bullion, gold bullion coins. Gold bars, and scrap gold are all options to build your investment portfolio through gold products.
Western Loan and Jewelry
Western Loan and Jewelry in East Los Angeles, CA is a gold dealer. The pawn shop has a team of leading gold and silver experts. They value gold and silver based on the current market value of each. There are several types of gold, such as; 10k, 14k, 18k, 22k, pure, and a few others. These types typically identify the percentage of gold in the item you have. For example, 14k means 58.5% gold, where 22k means 91% gold. The purer your gold or silver, the more we pay.
Silver has standards of its own. Such as Fine Silver, Britannia Silver, Sterling Silver and a few others. Fine silver has a millesimal fineness of 999 and is 99.9% pure. Britannia Silver has a millesimal fineness of at least 958 and is 95.84% pure. And Sterling Silver has a millesimal fineness of 925 and is 92.5% pure.
Western Pawn and Jewelry is a gold shop with the most experience in lending Cash For Gold in their community. They also buy and pawn silver coins, gold class rings, gold and silver jewelry, or any other type of gold and silver you may have. Whether your gold is 8 karat or 24 karat, they will pay you top dollar. The price for gold and silver is the highest in years, and now is the time to sell that stash of gold. They accept all things of value in their pawn shop.