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WHAT IS A BULLION?

PRECIOUS METAL is a rare, naturally occurring metallic element of high economic value. Historically, precious metals were used as currency (gold coins and silver coins), but are now regarded mainly as investment and industrial commodities.

Precious metals in bulk form (bars, coin, wafer or ingots) are known as bullion. BULLIONS are struck from precious metal and kept as a store of value or an investment, rather than used in day-to-day commerce and are traded on the market.

South Africa was the first country to mint bullion coins, the Krugerrand.   Bullion coins tend to be quite rare, many with mintages of less than 10,000. They have been minted since the late 1960s by a variety of countries, although most have been minted since 1980. They are designed to be bought and sold based on their metal content, not their face value.

Bullion coins sell for a premium over the market price of the metal on the commodities exchanges (strength of the dollar and the price of the metal due to predominant buyers). This is also due to their comparative small size and the costs associated with manufacturing, storage and distribution. The margin that is paid varies depending on what type of coin it is (bar or coin), the weight of the coin (1 lbs or 1 oz), and the precious metal (Gold, Silver, Platinum).

INVESTMENT OR COLLECTION?
BULLION comes in different type’s bars, coin, wafer or ingots. Most of these precious metals are kept as investment particularly gold bullions.  Investors view this as a hedge against inflation or a store of value.

BULLION coins can also be collected especially the silver coins. Silver bullions are much more in-demand than Gold for their affordability to the public.  The numismatic value for these coins primarily makes them into collectables.

As each individual person has their own  persona, collecting to invest is always a good way to make use for these bullons.

REAL OR FAKE? 
Gold and silver are not magnetic, so if you are buying in a pawnshop or anywhere else, carry a high power magnet.
It is highly unlikely that official minted coins could be fake, but be careful with unmarked bars.  Be cautious in buying over eBay. Learn more about the seller and what are they actually selling. 100 mills are not real metal; instead they are 1/10 of an inch thick over a base metal.

BUY GOLD SAFELY: Everything you need to know about buying Gold