 |
|---|
Gold Bullion
Bullion is a common word for gold and silver, the jewels being 99.5% pure and in the form of bars or ingots. To create bullion, gold should be first extracted from the earth in the form of ore (a combination of gold and mineralised rock), after being discovered by mining companies. It is extracted with the use of chemicals or extreme heat. The resulting pure bullion is also called "parted bullion." Bullion that contains more than one type of metal is called “unparted bullion.”
Bullion is a legal tender owned by Central banks held in reserves, they own 20% of the mined gold. It is also used by institutional investors to get an edge over the results of inflation on their portfolios. Gold is also held as reserves, a bullion that the bank utilises to repay international debts.
Points to remember:
Bullion is a legal tender owned by Central banks held in reserves.
It is also used by institutional investors to get an edge over the results of inflation on their portfolios.