What is bullion?is a regularly asked question by many gold and silver investors entering the bullion market. Let’s now see a historical perspective on the term bullion. In the precious metal industry the term “bullion” refers to a coin or a bar made from a precious metal like gold, silver, palladium or platinum. The term bullion originates from the French word bouillon which means mint or a melting house. Throughout history, monetary financiers and countries have pursued the stability and financial security that gold and silver bullion offered.

Bullion coins and bars made of gold, silver and other precious metals are available in various weights. They come in several sizes like 1 gram, 2 grams, 2.5 grams, 5 grams, 10 grams, 20 grams, 1 tola, 2 tolas, 5 tolas, half ounce, 50 grams, 100 grams, 250 grams, 500 grams, half kilo, 1 kilo, 100 ounce and 500 ounce bullion bars.

In the precious metal market, bullion bars and coins are sold over their spot price. This is because it takes a considerable amount of time and effort for a refiner to refine and manufacture the bullion product. The margin, also called a premium, differs from one refiner to another. For example, bullion coins have a higher margin than bullion bars on certain occasions. The premium is also affected by the demand for the bullion product. For example, panda gold bullion coins are generally more expensive than other bullion gold coins.

The London Bullion Market Association (LBMA) is the peak body in the world that regulates and sets refining standards for gold and silver refiners. The LBMA oversees the gold and silver markets in London and Europe in general. The LBMA sets and upholds the utmost standards in refining, detailing and storing every gold and silver bar allowed to circulate.

Membership of the LBMA is tightly controlled and it is extremely difficult for a refiner to get membership because they must show exceptional refining standards when refining gold and silver bullion. That is why many refiners are not recognised by the LBMA. Refiners that are recognised by the LBMA are called Good Delivery Refiners.

Almost all gold and silver bullion that Gold De Royale sells are from Good Delivery Refiners. For example, PAMP of Switzerland, Valcambi of Switzerland, Argor Heraeus of Switzerland, Johnson Matthey of Canada and Royal Canadian Mint of Canada are all Good Delivery Refiners of the LBMA. Therefore you can be guaranteed that what you buy is one of the best bullion products in the world.