bullion

Bullion refers to precious metal in bulk form that is traded on financial markets for investment or industrial use. The term is most often applied to gold and silver, though platinum, palladium and other metals are also bought and sold as bullion. Bullion is typically produced as bars or ingots, and bullion coins serve as another widely traded format aimed at investors rather than collectors.

Purity and measurement are central to bullion. Bars are manufactured to defined fineness, such as 99.5% or higher for gold and 99.9% for silver, with purity expressed as fineness (for example 999 fine) or, in the case of gold, karat values. Mass is measured in troy ounces or grams. The London Bullion Market Association (LBMA) sets standards for gold and silver bars, including the Good Delivery requirements that define acceptable weight, dimensions, and purity for the largest bars; smaller bars and coins come in a variety of sizes and purities.

Forms and uses. In addition to bars, bullion coins are minted in widely recognized weights and purities and are used for investment. Common gold bullion coins include widely traded examples such as those issued by national mints; while their face value is nominal, price is driven mainly by metal content plus a small premium.

Market and storage. Bullion markets are global and highly liquid, with prices tied to spot metal values and influenced by supply, demand, currency movements, and geopolitical factors. Investors and institutions store bullion in secure vaults or depositories, incurring storage and insurance costs. Security, authentication, and fraud prevention rely on assaying, hallmarking, and provenance documentation.