What Is Gold Bullion?

What Is Gold Bullion?

What Is Gold Bullion?

The American Eagle Bullion program was started in 1986. When it began it consisted of gold bullion coins and silver bullion coins, although platinum bullion coins were added in 1997. The main difference between a gold bullion coin and any other gold coin is that gold bullion coins are valued by weight of the precious metal they are made of.

History shows us that gold has been valued as far back as the third millennium BC which is the oldest known archeological find to turn up gold jewelry. Although the earliest finds were of jewelry instead of coins it is clear that gold was indeed highly valued to be included in the burial decorations. As countries advanced in their search of civilization gold became the basis of most currency.

The gold standard was established in 1821 to stabilize global economies. This standard stated that all printed currency must be backed by gold. In other words if they did not have gold held in reserve they could not print more money. While this was a good idea it did not long survive. By the end of the First World War countries were being allowed to keep reserves of currency instead of gold. The great depression marked the end of the United States exportation of gold.

Gold bullion continues to hold its value even in modern times. When inflation soars and other investments begin to crumble, gold retains its value and often increases in value. Gold bullion is one of the major exports of several indebted countries because of its intrinsic value. The limited amount of gold on the market helps to increase its value as well. Any time something is in short supply its value becomes higher. However, some of the popularity of gold can be explained by the economic problems in the world today.

Gold bullion, unlike some other investments, retains its value even in the face of troubled economic times. Gold bullion coins have an intrinsic value over and above the value given by the market. Gold bullion is not just another commodity to be traded on the stock market but is an actually currency itself. Many people choose to invest in gold bullion because of this fact. They know that their investment will be secure even if the market crashes because of the intrinsic value of gold bullion. This makes investing in gold bullion one of the safest options for investors in uncertain economic times.

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