For over six millennia, bullion has been has been used for monetary purposes. Whether it was fashioned into a particular shape or measured by weight to distribute, its purpose has not changed. By definition, bullion does not identify any particular metal. In fact, it is defined as a precious metal in bulk form. Thus, it is not bullion if it is not identified as “precious”.
Looking at some examples of bullion, consider these three precious metals – gold, silver, and platinum. Bullion can be distributed as a coin, ingot, or even nuggets. With reference to coins, typically an alloy of the precious metal is created that does not necessarily diminish the value. Take the U. S. Gold Eagle coin; it is made up of approximately 91.67% gold, 3% silver, and 5.33% copper. This coin is still considered 99.9% pure by referring only to the gold content and not by including the alloy aspect.
With a better understanding of what bullion is specifically, let’s consider what affects its value determination. Metal, weight, and purity all have a profound impact on just how valuable bullion will be once it is prepared for availability by a minting process. Different types of metals already have a base value assigned due to commodity market influences. Gold is worth more than silver, yet platinum is worth more than gold.
gold bullion
Next, weight has a proportional consideration with the metal. A standard measurement used with precious metals is a troy ounce. This is defined as being 480 grains, 31 grams, or more easily understood in U. S. measurement as one twelfth of a pound, or 1.33 ounces. As an example, Austria has a 1000 oz. minted gold coin in 2004 and was labeled as the largest ever minted by the Guinness Book of World Records.
Finally, consider purity of a coin. For instance in this case, gold will be explained. After going through a refining then a smelting process, the gold is sent to an assay laboratory. This lab is where the purity is defined. From a process called “fire assay”, the gold goes through several steps that include being wrapped in lead foil with a certain amount of silver. Once heated in a porcelain crucible all of the impurities and silver are removed. A ball of gold is now flattened, dried, and determined to be 99.999% pure. 100% purity is not attainable.
Bullion is considered the oldest form of currency which has been the subject of obtaining power, starting wars, and realizing financial freedom for more than 6,000 years. Of course, time has a creationism tone for the purpose of bullion history. In essence, one could say that bullion is made up of a process determined by several factors. To this writer, it is made up of a fascinating history with countless stories that can take anyone through a journey in time.
Silver Bullion
By James R Eberts. James is a research and creative writer for EverDream Web. He specializes in educational and informative articles that are readable and have contextual integrity. This article was sponsored by Raymond Lee Jewelers, the most referred jewelry store in all of Florida. Raymond Lee Jewelers, for jewelry or luxury watches. Sell jewelry, buy jewelry or have repairs done!
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