Bullions

Bullion refers to bars and ingots of precious metal, although it has also gained the meaning of coins made primarily out of a metal piece and plated with precious metal. Most bullion is made of either gold or silver, but platinum has been gaining in popularity as well. Bullion is commonly purchased as an investment, since the value of precious metals tends to hold fairly steady and is less subject to economic forces like inflation.

Bullion bars or coins tend to be easier and cheaper to purchase than coins with a similar amount of metal due to the historical and collectible significance of the coin. As such, bullion can be a gateway for consumers who want to own gold or silver, but don't want to pay the premium associated with collecting coins. Bullion also makes a nice gift for similar reasons.

Older bullion bars are usually inscribed with information about the bar such as weight or purity. This contrasts with much of the bullion that is advertised to consumers today, which tends to be stamped or plated in some commemorative or decorative fashion.

Quick Facts

• The krugerrand, a bullion coin from South Africa, is uncommon in that it is used daily as legal tender
• The United States Mint issues proof versions of the platinum eagle bullion coin. These coins change reverse designs annually, adding to the intersection of investor and collector
• The term bullion probably descends from an old French word meaning "to boil," referring to the minting process. It could also be ascribed to a French Minister of Finance from the 16th century, Claude de Bullion