Gold bullion definition
The term gold bullion describes a large quantity of physical gold that is at least 99.5% pure metal, it can be cast in bars, ingots, or coins.
Investors often purchase gold bullion as an alternative physical investment to hedge their risk against other financial exposure to markets. Gold bullion is a tangible asset that is regarded as both an alternative and safe-haven asset.
Gold the element
Gold is a chemical element. The symbol is Au, and the atomic number is 79, one of the highest naturally occurring atomic, number elements.
The rarity of gold increases its demand and worth, and it’s considered a safe-haven asset during market turbulence. Although central banks do not issue gold as a currency, the precious metal has monetary value, usually measured internationally versus the US dollar.
Expressed as a tradable security, gold is quoted as XAU/USD on most trading platforms and is typically priced in ounces per US dollar.
Like other precious metals such as silver, gold’s value also derives from its industrial use, it’s an excellent conductor of electricity.
The World Gold Council (WGC) estimates approximately 200,000 mined metric tonnes of gold in circulation, with an extraction rate of 3000 metric tonnes annually and 54,000 accessible metric tonnes left to excavate.