Bullion is non-ferrous metals like gold and silver that you can use as investments. These precious metals have been around for centuries and are considered valuable assets.
However, what are the advantages and disadvantages of these investments? What are the different types of bullion? Read on to find out more.
Gold
When purchasing gold bullion, one must remember that the gold itself has value, and this value will fluctuate. This is why it is important to research the value of gold in a given currency before investing.
While gold is not legal tender, it is often held in reserves by central banks, which use it to hedge their portfolios against inflation. Worldwide, central banks hold approximately 20% of all mined gold as bullions. Central banks use gold lending to boost the economy, lending the gold to certain banks at a 1% rate.
The purity of gold in gold bars is determined by the weight of the gold content. Click here for more information about the fineness of precious metals. A typical 1 oz gold bar contains 0.9999 or 0.999 percent pure gold.
As with any other form of investment, gold has several different forms. Some are used for jewelry, but are not intended for investment purposes. However, there is ample value in these types of items. They will not carry exact purity or weight markings, but the value can be significant if sold in the right way. This is important information for those considering an investment in gold.
Silver
There are many ways to purchase physical silver. Some dealers will offer a free shipping option, while others will charge a small fee to ship the bullion. Either way, you should do your research before making any purchases.
There are also many online silver bullion dealers that offer excellent prices and easy browsing. When buying bullion, you should also be aware of the different types of prices.
Physical silver is more expensive than coin or round silver because it has a lower density. As a result, it requires more space.
Fortunately, you can store the silver in your own home or at a safe deposit box at another location. Fully insured non-bank gold depositaries are a great option. Bank safe deposit boxes are not FDIC insured. So, if you can’t afford to purchase silver coins or bullion bars, you may want to invest in physical silver.
Another benefit of investing in silver coins is the security of backing by the government. Although the face value of these coins rarely matches their value in silver, they are still an option for investors.
Many coins are backed by a national government, which is a comforting sign for those who want a high level of consistency and security. Furthermore, the official government’s backing guarantees the purity of the coin, as well as a defined pool of buyers.
Platinum
There are many different ways to own platinum bullion. You can buy bars and coins that contain platinum, which is one of the most valuable precious metals in the world.
Depending on the weight of your bar, you can purchase up to six kilograms of platinum. New bars typically weigh five kilos, or about 155 ounces. Platinum is sold at lower wholesale prices and is not subject to a premium like gold.
Another way to buy platinum is to invest in an ETF that tracks its price. This type of ETF is more liquid than traditional gold or silver products. You can buy and sell platinum bullion easily, and the price of each share varies throughout the day.
A typical platinum ETF costs less than $100 a share and is easy to buy through an exchange. Investing in platinum bullion can also help you to diversify your portfolio and hedge against inflation.
Palladium
Coinage is another way to invest in palladium. Palladium coins are made of the rare, silver-white transition metal. ISO 4217 has assigned this metal the code XPD. Coins were first produced in 1966. These rare metals are considered to be the future of coinage.
Choose a reputable dealer. You can buy palladium bullion at a reputable dealer who offers a range of products to meet your needs.
Pay close attention to payment methods and quantity discounts. Be sure to check out reviews (like the one found here: https://investingingold.com/midwest-bullion-exchange-review/) to help you get in touch with a reputable dealer. Buying a single product in a bulk quantity is likely to earn you the most favorable discount, so pay close attention to payment options. Make sure to choose a bullion dealer who accepts the payment method you prefer.
While palladium is rarer than platinum, it is in a limited supply. Due to its low cost, it was used as an alternative metal in catalytic converters. However, with limited mines worldwide, the price of palladium has skyrocketed.
Today, it is higher than silver, platinum, and gold. You can diversify your portfolio by purchasing palladium bullion. When buying palladium bullion, remember that you’re buying the metal for investment purposes.
Platinum-palladium
In recent years, platinum and palladium prices have appreciated substantially. In fact, palladium is now used in the automotive industry as a catalyst. These converters convert nitrogen and hydrocarbons into less offensive substances.
Because of its catalytic properties, platinum and palladium are becoming the metal of choice for many industries. Investors can benefit from these properties and invest in platinum-palladium bullion.
Historically, platinum was the more commonly used of the two metals. It is often used in automobile catalytic converters and in the production of surgical instruments.
Palladium is also a component of white gold, and it is a vital component of high-end watches. It was first identified in 1803 but was not used in coins until the 1960s. The coins then were commemorative and not popular with investors. But in the 1980s, countries began to produce official palladium bullion and other coins with palladium.
In recent years, palladium has also seen a rise in popularity.
