If you were thinking of the value of gold bullions, here’s what research has to say: A one kilo gold bullion bar costs 32 times more than the price of a typical modern-day government or private mint issued 1 oz gold bar. Tempting, isn’t it?

Bullions are traded in physical markets while gold is traded in physical quantities as well as in the futures market. Here’s all that you need to know before investing in gold bullion.

Be Wary of Numismatic Gold

You can invest in the American Gold Eagle or other forms of gold bullion through government or private mints, precious metal dealers or even jewellery stores. But you must be careful about buying rare or value gold coins or other gold items. They are prepared and made for gift giving or collection purposes, and as an investor, that is not what you need.


When you’re deciding where to buy gold from, you need to consider the idea of reselling it. Some businesses have a habit of buying back the gold they sold, while others may even buy the gold they never sold. But keep in mind, they may lower prices for it in comparison to the price of their own sold items.


One size does not fit all, especially in the case of gold bullion. You need to take your time to evaluate which deal suits you best from an economic standpoint. Why? Because sellers may quote different prices for the same items.

One way of doing this is to evaluate bullion options by the price and premium on the gold spot price. Like everything else in life, opportunity knocks only once. So, you may not necessarily get this premium back upon the sale.

Exchange Traded Funds (ETFs)

You can make money and follow the price of gold bullion a.k.a. yellow metal. This way, you will gain access to holding physical gold bullion or a gold futures contract. But holding gold bullion and owning it are two different things—in this case, your gold ETF that tracks gold bullion cannot be redeemed for the actual yellow metal.

Lower Risk Investment

Having said that, if you invest in gold bullion through ETFs, it provides you security by acting as a hedge against economic and political uncertainty. You can also avoid the hassle of buying and storing the yellow metal.

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