Bullion Explained

Precious metals, more commonly gold, in bulk form is known as bullion.  The value of this bullion is determined by its traded value on the commodity markets, which means the price can fluctuate hour to hour.  Bullion metals are commonly cast into ingots or coins.  Goverments can only authorize the production of coins.  Where any company can produce bullion or medallions.  One of the defining characteristics of a bullion metal is that it is valued by weight and not face value, like money.

This is interesting because a country, may mint gold bullion into coins and assign them a face value.  There was a time time when the money was equal to the metal.   Typically now it is for marketing purposes that governments give coins a face value.  People do not want to purchase medallions like the Grant Hill coins.  For instance, Canada has a $50 dollar face valued coin.  But when you compare that to what it is worth by weight, approximately $1100, as bullion, it is worth more by weight than at face value. Nations do this to give the coin a numeric value in addition to their bullion value.  Now you can see why gold coins, and other precious metal coins are so popular with collectors.  When the price of the precious metal goes up, the coin’s value goes up based on bullion, and when the price goes down, so does the value.

For more information about gold, refining and bullion, please visit Manhattan Gold & Silver today.  We have a broad range of services to help you refine your precious metals.

Manhattan Gold & Silver Update

We’re currently open from 9:30am – 4:00pm Monday-Friday.  Customers are now allowed to enter the exchange with a mask and witness melts as usual.

If you have any questions you can still contact us at 212-398-1454 and sign up for our newsletter for further announcements.

Most importantly, please stay safe! 

Skip to content