Bullion: What it is and How to invest in it?


Are you looking for something to invest in? Fortunately, you are in the right place. This article concerns a highly valuable asset that enhances your portfolio and money. 

What Is Bullion?

Significantly, Bullion refers to physical Gold, and Silver contains at least 99.5 or 99.9 purity, whose weights vary. In addition, they are in the form of coins, bars, and ingots. Markedly, central banks and the government keep Bullion as a reserve asset.  

Mining companies mine Gold for Bullion. Initially, the Gold is in the form of Gold ore, a combination of Gold and mineralized rock. Afterward, chemicals and external heat help to extract Gold from ore. This pure Gold forms high-quality bullion.

Bullion as Legal Tender

Investors, collectors, and central banks often buy them to hedge against inflationary effects on their assets or portfolios. Significantly, central banks actively reserve 20% of mined gold globally. 

The motive of the central bank to buy Bullion is to settle international debt or stimulate the economy via Gold lending. Hence, they lend Gold from their bullion reserves to bullion banks at a bit higher rate to help raise money.

Bullion Banks

Bullions banks are involved with precious metals. Some banks are involved in activities like clearing, trading, risk management, hedging, or mediating between borrowers and lenders. In addition, all the bullions banks are associated with the London Bullion Market Association (LBMA). Generally, it is an over-the-counter (OTC) market that provides no transparency in its dealings. Furthermore, OTC markets are dealer networks for securities, commodities, and financial products. 

Here is the list of 12 LBMA market makers

  1. BNP Paribas
  2. Citibank
  3. Credit Suisse
  4. Goldman Sachs
  5. HSBC
  6. ICBC Standard Bank
  7. JP Morgan Chase
  8. Merrill Lynch
  9. Morgan Stanley
  10. TD Bank
  11. UBS
  12. Standard Chartered Bank

Purchasing and Investing In Bullion

There are many ways to own or invest in bullion. But also keep in mind that, like other investments, bullion prices also fluctuate. To clarify, there’s a risk of loss, but before investing, if you do proper research, you get benefits. 

Below we mentioned the best ways to invest in bullion to avoid risk. 

  1. Physical Form 

A collector or inverter can purchase bullion in physical or paper form. So, Gold and silver coins or bars can be easily purchased from reputable mints or authentic websites like AU Bullion and kept in a safe deposit box at home or bank. Also, you can keep them in a third-party depository. 

Apart from this, you can buy bullion in an allocated account at the bullion bank. To put it differently, you will have full legal ownership of the gold. In case, the bankrupts, the creditors have no claim to the bullion as it belongs to the owner, not the bank, at any cost. 

  1. Exchange-Traded Funds (ETFs)

Investing in Gold and Silver bullion via ETFs allows investors or collectors to access the precious metal market. Basically, these are the funds that have securities, while other typical funds track the underlying index. Also, it has low fees and makes it much easier for investors to access the precious market.


Well, this is a short introduction to the bullion to know more about Gold and Silver coins or bars, you can contact AU Bullion. Au bullion is one of the most reputable sellers in Canada that will assist you entirely with bullion.

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