Gold bullion is a term that you’ll hear frequently in regards to investing in gold. It is favored by most financiers due to its ease of liquidity, established weight and international recognition. The word “bullion” denotes gold in bulk, which is valued primarily on its weight and purity. It can be purchased in two variations, which are coins and bars.

Bullion Coins

Bullion coins are usually smaller than bars and are circular in shape. Many of the major governments of the world (such as the Canadian, Australian or United States government) have their own official bullion coins struck in gold. The price of these coins is closely tied to gold’s spot price along with manufacturing fees. They cannot be purchased directly from government mints in most cases and must instead be acquired through authorized dealers who will charge a markup for profit.

Due to their smaller size bullion coins are easier to transport, store and secure than bars and it is also easier to liquidate them. As such they are ideal for those who are just getting started in precious metals investment. Bullion coins should never be confused with numismatic coins which are valued based on aesthetics or rarity.

Bullion Bars

Gold has been manufactured as bars for centuries, and there is a very good reason for this. They are the best option for investors who want to acquire gold in bigger quantities. Their rectangular shape also makes them ideal for storage and transport. In some European countries it is still possible to purchase them over the counter at banks. However, bullion bars are best for those who are experienced, and there are several reasons for this. First, they can be difficult to liquidate. When you do liquidate them it can be more expensive than liquidating coins and because they tend to be larger they have less versatility.

Bullion bars are the perfect investment for those who are extremely wealthy, who have lots of gold in coin form and are looking to diversify their holdings into a different form of bullion. You will need lots of space for bars which is why many owners store them in vaults. Another difference between bullion bars is that they are largely free of the artistry which appears on bullion coins. Many bars will feature little more than the weight, purity, and logo of the manufacturer. While the major governments of the world all have official bullion coins, less emphasis is placed on bars.

Bullion, whether in coin or bar form, is the simplest and most affordable way to own gold. They are easy to sell for cash when you need to and they are recognized at most major and smaller sized banks worldwide, as well as many coin shops. By using the internet it has become easier than ever to compare prices, check the current spot price for gold, and ensure that you get the best deal for your money.