Buying bullion can be a lucrative way to invest your money and a great way to diversify your risk. However, as with any other form of investment, the degree of your success will be determined by the soundness of your strategy. Let’s start with the basics:
What is Bullion?
Bullion is a bulk quantity of precious metal, such as gold, silver, platinum or palladium, measured by weight and typically cast as bars. Gold and silver are also bought and sold as coins (platinum and palladium coins exist but are rarer): and gold is traded in the form of small grains.
What are Bullion Coins?
Bullion coins are cast from precious metals and bought for investment purposes. Their value is based on their bullion content and prices fluctuate daily. Well-known examples are the British Sovereign, Canadian Maple Leaf, American Golden Eagle and the South African Krugerrand.
Because they are classed as legal tender they enjoy a favorable tax treatment in many jurisdictions.