What is Bullion? How to Gauge its Worth and Get an Accurate Price
If you are wondering what bullion actually is and how to find out what it is actually worth, read on to find out all you need to know from expert silver and gold bullion dealers and silver and gold bullion buyers.
What is a “bullion?”
Bullion is silver and gold that’s officially recognized as containing a minimum of 99.5% and is 99.9% pure. It comes in the form of ingots or bars and is often times kept as a reserve by central banks and governments.
Gold Bullion and Silver Bullion Dealers
In order for bullion to be created, it is first discovered and then mined by removing it from the earth in the form of ore. Once it is mined, the gold or silver is extracted, and extreme chemicals and/or heat are used to separate the bullion into a pure form.
Gold bullion dealers and silver bullion dealers use certain factors when they come up to their rare coin appraisal figures which determine how much they are willing to pay for a piece of bullion.
Silver Bullion Buyers and Gold Bullion Buyers Spot On Calculations
When purchasing silver and gold, dealers use a method to determine how much they are willing to give silver bullion sellers and dealers called the spot price. It is calculated by the forward month’s future contract with the most volume. This figure may be two or more months into the future or it can be the current month’s projection. It is influenced by the fluctuations that arise from the COMEX in the United States, a division of the New York Mercantile Exchange which acts as a gage for rare coin appraisals.
The spot price is traded close to 24 hours a day during week days but is not active on weekends. It is derived not only from COMEX, but also from exchanges that are located in Chicago, China, London, Zurich, and Hong Kong. It is not based on market fundamentals necessarily but on a gold derivative hologram which determines the value that gold bullion dealers set the value of gold at and that silver bullion dealers set the value of silver at in keeping with the figures and calculations.
Common Practices of Gold Bullion Buyers and Silver Bullion Buyers
If you want to invest in silver or gold or do business in these realms, you will need to become familiar with the practices within the industry that influence rare coin appraisal, which will determine what price gold and silver bullion is bought and sold at.
Typically, the price of bullion hovers over the spot price. When it comes to gold bullion, most physical gold bullion products are sold for a little over the spot price. The flow of gold’s spot price is leveraged on bets worldwide that figures in what the prediction of future exchanges are.
Miners dig gold from the ground and derive it from sources other than the ground such as a byproduct, as there are not many only gold producing mines left in the world since it has been over-mined. The miners sell the mixed gold and ore bars to fine bullion refiners who price their wares below the gold spot price. Then they melt and purify the ore into near pure bullion bars and sell then to mints or gold bullion dealers for a tad above the gold spot price. Retail dealers like gold and silver bullion buyers come in and sell the gold and silver at competitive prices to the public. When getting a rare coin appraisal this is the price that is ultimately offered.
Silver Bullion Dealers
Silver bullion dealers operate like gold bullion dealers. The silver is mined and sold in a less than pure state and then is melted and purified, then sold to silver bullion buyers, just as gold is sold to gold bullion buyers. Those buyers sell to retailers at a price that is slightly above the spot rate.
How to Determine the Spot Rate of Gold and Silver
With a little research online, you can get the spot rate that silver bullion dealers and gold bullion dealers are working with each day. That will help you to determine what the value of your gold or silver should be and what you can sell it for. Likewise, if you are buying gold or silver, you’ll know what the price will be based upon.
Buying and selling silver and gold bullion is a complicated subject but the more you dig into it, the more you’ll learn and the better you will become at buying or selling bullion.