As an investor, your goal is to minimize risk as much as possible. While there’s no such thing as a sure thing when it comes to investments, it’s true that some investments are much safer than others. If you’re looking for a stable investment, there are limitless opportunities in the world of precious metal bullion, which is any piece of precious metal that is at least 99.5% pure. This quick guide will give you an introduction to investing in precious metal bullion.
What is Bullion?
By definition, bullion is the pure form of a precious metal such as gold, silver, or platinum. Since precious metals are not pure in nature, mining companies must extract the bullion from ores before being cast or minted. The defining attribute of precious metal bullion is that it’s valued by its mass and purity rather than by a face value as money or by its rarity or historical significance as a collectors coin.
Types of Bullion
Bullion is typically cast as ingot or bars, though investors can also purchase bullion coins. Like gold and silver bullion bars, bullion coins are guaranteed as to weight and purity by various official mints worldwide. However, bullion coins like the American Gold Eagle have the added advantage of being legal tender.
Benefits of Investing in Bullion
For some time now, precious metal investments have been viewed as a smart way to hedge against inflation and sudden economic crisis (take the global financial collapse of 2008, for example). The benefit of investing in precious metal bullion in particular is that it has a low premium over its “melt” value. In other words, when you buy gold or silver bullion, you aren’t paying much more than the actual value of the precious metal.
California Numismatic Investments can help you navigate the world of precious metal bullion. We offer numerous types of precious metal bullion investments, including gold, silver, platinum, palladium, and rhodium. If you have any questions about in precious metal investing or need help deciding between the different types of bullion, please call us at (800) 225-7531.