Bullion: Gold, Silver & Platinum
Gold, Silver and Platinum can be used for more than just stunning pieces of jewellery. Bullion is classified as gold, silver and other precious metals that are often sold in bars, coins or ingots. Throughout history, bullion has been used as a hedge against inflation and portfolio diversifier by banks and investors in times of economic turmoil and recession. This is due to its ability to hold value while government backed fiat currencies, ie the US Dollar are falling in value.
In 1971, the US dollar was removed from the gold standard. This essentially turned the US dollar into debt and gave the Federal Reserve the right to print money as and when they needed. Though whenever money was printed, it would devalue the dollar and other government backed currencies (fiat) which drives up inflation due to the increased amount of that currency in the system.
Since then the value of gold has sharply increased, especially during times of war, inflation and recession as people look to protect the value of their money as their fiat currencies are losing value due to the excess printing of money. As gold and silver are essentially minerals that are mined from the ground, they are in limited supply which is the reason why they are able to hold their value. This is why many investors flock to metals markets during these difficult economic periods. Take a look at the index chart below and see for yourself how the prices of gold and silver have changed over the years.
If you are viewing on a mobile device please rotate your device to landscape. This chart is provided by Bullion Vault.
Today buying bullion has never been easier. With so many bullion traders online and the options of ETF’s, mutual funds, derivatives markets and even buying shares in mining companies, it can be difficult to know where to start if you want the best prices and are new to the world of bullion.
ETF’s and other so-called ‘paper trades’ are more often than not just IOU’s on a lot of exchanges. This means that if for whatever reason you want to withdraw your bullion in physical form, you will not be able to do so as the exchange will not have it. This is why here at Argemti we use Bullion Vault for holding our precious metals.
Bullion Vault is a well respected and responsible online bullion trader with some of the best and fairest precious metal prices on the market. Not only that, but Bullion Vault actually owns the precious metal they sell online and you can choose if your bullion is to be stored in their secure London, Zurich, New York, Toronto or Singapore vaults for safe keeping. This also means that you can request your physical gold and silver in the form of 100g bars should you need or want to, which gives you the peace of mind that you actually own the metals you are trading.
This is for informational purposes only and should not be taken as financial or investment advice in any way. Trading is always risky and you should never trade with more money than you can afford to lose. Argemti in no way claims to be an expert in this subject.