The word „bullion“ refers to bars, ingots, or other forms of precious metal that are valued by weight, rather than by the item’s form or design. The word has its roots in the medieval Latin word “bullire”, which means “to boil”.
The word “bullire” is used in many fields, such as chemistry and physics, to refer to the process of boiling, but it was also used in metallurgy to refer to the process of refining metal – likely referring to the process of refining gold and silver, which involves melting the metal and removing impurities by skimming off any dross that rises to the surface.
The word “bullion” first appeared in the English language in the 14th century and was used to refer to the bars or ingots of precious metal that were produced during the refining process. These bars were typically stamped with the weight and purity of the metal, and were used as a form of currency or as a store of value.
During the Middle Ages, bullion was transported by merchants and traders as a means of payment, it was also used to mint coins. The word “bullion” is used to refer to a coin that is made of gold or silver.
In modern times, the term bullion is primarily used to refer to large bars of gold and silver that are traded on the commodity markets, and are valued based on the spot price of the metal. These bars are typically produced by government mints or by large refineries, and are used as a form of investment. Bullion can also refer to other precious metals like Platinum and Palladium.
The word “bullion” is used to refer to a coin that is made of gold or silver.
Bullion is also classified into two types, one is un-circulated bullion which is the bullion that has not been used as currency, and the other is Circulated bullion which is the bullion that has been used as currency. Investors tend to buy bullion to hedge against inflation and currency fluctuations, as the value of gold and silver tends to increase when the value of other investments decreases. Bullion is also considered a safe haven asset during times of economic uncertainty.
Bullion is usually bought and sold in standard weights like troy ounce, gram or kilogram. The standard weight of gold bullion is 1 troy ounce (31.1035 grams) and silver bullion is 1000 troy ounce (31,103.5 grams). Bullion can be purchased in various forms such as coins, bars, rounds.
Overall, bullion is a widely recognized and accepted form of investment, with a history dating back centuries. Its value is based on the weight of the precious metal it contains, and it is considered a safe haven asset in times of economic uncertainty.