Bullion market is a forum where one can buy or sell gold and
silver in pure form. The gold and silver should be at least in form of
99.5 per cent pure bars or ingots and they are usually traded over the
counter which is open 24 hours a day. Bullion market has a high turnover
rate and basically these transactions are done electronically or over
the phone. Gold and silver derive its value from commercial and
industrial use and they also work as a hedge against inflation.
Bullion market is one of the several option through which one can invest in gold and silver, the other options like mutual funds, exchange traded funds are more flexible and appealing to investors because bullion trading is done in tangible form of gold and silver bars of a specific established size also these are difficult to store and secure. Bullion market continues to be the lowest premium generator but investors prefer it to insulate them against investment market decline, currency depreciation, inflation, increasing national debt. Bullion is also a subject of speculation as other investment options especially like futures and derivatives but bullion metals have always shown a correlation with crude oil which makes it an alluring option to invest in.
Bullion market is one of the several option through which one can invest in gold and silver, the other options like mutual funds, exchange traded funds are more flexible and appealing to investors because bullion trading is done in tangible form of gold and silver bars of a specific established size also these are difficult to store and secure. Bullion market continues to be the lowest premium generator but investors prefer it to insulate them against investment market decline, currency depreciation, inflation, increasing national debt. Bullion is also a subject of speculation as other investment options especially like futures and derivatives but bullion metals have always shown a correlation with crude oil which makes it an alluring option to invest in.
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