- The purpose of bullion is to use precious metals as a store of value; bullion is typically stamped with a given weight and refinement (18k gold, 24k gold, etc.) to make it easy to account for.
- Most commonly, bullion is used to refer to metal bars or ingots, but it can also refer to other shapes that are of uniform size and weight.
- Coins composed of precious metals are often thought of as distinct from bullion, however, coins traded solely for the value of the metal they contain are a form of bullion and are sometimes called bullion coins.
- The size of individual pieces of bullion can vary greatly; a bullion coin might weight less than an ounce, while a large brick of gold could weigh more than 10 pounds.
- Bullion is a common investment since the value of precious metals changes versus paper currencies over time; investing in bullion carries high risk and high potential reward.
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