Why is Gold Bullion So Much in Demand?

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Why is Gold Bullion So Much in Demand?

Precious metals are the ones that are rare on our planet and very hard to find. They can lose their value if a new source of ores is discovered, or even if there is a better way invented for the mining or the refining processes for the existing ores. Another important factor in estimating the status of a precious metal is its high demand and the current market value.

Normally, if we are talking about any precious metal in bulk, it would be in the form of bullions. All precious metals are turned into bullions and traded in a commodity market. Bullion metals can be either casted into the form of an ingot or minted into coins. Bullion is always valued according to the mass and purity level it has and not by its face value in monetary terms as would have been the case with any other item.

Different nations throughout the world mint gold bullion coins. Originally, these coins serve the same purpose as currency notes and hold the value of a legal tender, but the value of these coins as bullions is a lot more than their value as currency.

Canada, for example, mints the famous gold bullions known as the Gold Maple Leaf. Now these coins have a face value of $ 50, and they contain one troy ounce of gold. These coins are limited in number and you will be lucky to get one for a minimum of $ 950 if not more. A bullion coin seems to have a special value after being minted by the national governments as this also acts as a certificate of the coin’s purity.

The purity of gold bullion is different from coin to coin, and is normally set for 99.9%. The purest bullion coins ever to be mass-produced will have to be from the Canadian Gold Maple Leaf series. The purity level for these coins has been set at 99.999%. We cannot achieve 100% purity level, because no matter how refined and sophisticated methods we use to extract gold, it will still have some quantity of impurities that we would be unable to separate.

Gold is the most popular precious metal used as an investment. Investors feel safe in buying gold as it is considered to provide shield against most of the economic crisis. During the times of inflation, gold investment can earn handsome profits.

Gold bullions today are in great demand. The world is facing one of the worst financial crises of all times and people are trying to guard their wealth. It seems that the best way to do it with success will be to invest in gold bullions. Investment in gold can be achieved by directly buying gold bullions or own gold coin.

Moreover, in times of war, people have a tendency to think that their assets might be seized by the government and the currency may not hold any value anymore. Gold bullion is considered a solid asset in these conditions as it will always retain its value.

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