Gold Bullions

Gold bullion is used to facilitate the transfer and liquidity of gold as a commodity. Bullion also assists average people in owning a precious commodity, however small. While the concept of a bar or coin of gold has existed since very early history, gold bullion as a modern concept began with the creation of the krugerrand. The krugerrand is a one ounce gold coin minted in South Africa since 1967. It was conceptualized as a coin meant to trade for its gold value, not its face value.

Some gold bullion coins are not pure gold, despite containing their weight in gold. The American eagle and the krugerrand are two examples of this. These coins contain roughly nine percent of their total weight in an alloy that is meant to reduce wear. Both of these coins are legal tender at their face value, which allows them to be freely traded and transported without legal restrictions or taxes.

Not all gold bullions are in the form of coins, however. Some gold bullion is minted in the form of ingots or bars. Bars tend to be cheaper than coins, since coins have added elements of artistic and collectible value. Some private mints provide artistically minted gold bars, such as the Pamp Suisse mint in Switzerland. These bars readily command premiums over plain ingots and have achieved a level of collector interest on their own.

Quick Facts

• It is estimated that all of the gold currently mined throughout history could be melted into one cube with sides measuring 166 feet
• Australian kangaroo gold bullion coins are the heaviest bullion coins in the world, weighing in at two pounds each
• Fort Knox, which contains the United States gold reserves, holds just over nine million pounds of gold within its walls