The bullion market refers to the basic system or structure used for the buying and selling of precious metals, primarily gold and silver and related derivates. Bullion, for the purpose of trading, refers to gold and silver that’s at least 99.5 percent pure and generally in bar or ingot form. As for how the bullion markets typically work, the precious metals experts from First National Bullion, the silver and gold dealers Scottsdale collectors trust for high-quality service and industry knowledge, explain what you need to know if you have plans to buy or sell solid gold or silver.

Over-the-Counter Markets

This is the term commonly used to describe bullion markets due to the nature of how trading works. Bullion markets are typically driven by the consistent value of gold and silver as well as the many industrial uses for these particular precious metals. Large mines also play a role in affecting current market values.

Spot Price

The bullion markets are based on the current market value of gold and silver, referred to as spot price. In other words, this is the price bullion can currently be bought or sold for fairly immediately based on current demand.

Physical Forms of Bullion Traded

It’s common for trading via the bullion market to involve 1-ounce, 10-ounce, and 1-kilo bars. Also, investors are encouraged to work with gold or silver originating from reputable sources and trusted manufacturers to ensure the purity of what’s traded, bought, or sold.

The Leading Bullion Market in the World

There are many different bullion markets around the world today, including ones in New York, Tokyo, and Zurich. However, the London Bullion Market is widely recognized as the leading bullion market in the world for the official trading of gold and silver. Offering 24-hour trading options, this particular market typically sets the standards for bullion trading. Most of the companies trading via this market generate the bulk of their revenue from the exchange of gold and silver.

Less Trading Flexibility

There’s one notable limitation with physical precious metals trading: the fact that what’s being bought and sold is in physical form. Tangible gold and silver in bar or ingot form needs to be stored somewhere and/or shipped as necessary. There are also added expenses for insurance and storage.

Preparing to Buy & Sell Bullion

If you’re weighing your options with gold and silver trading, the bullion markets are just one option to consider. You’re also welcome to explore options such as exchange-traded funds, or ETFs, and mutual funds. A precious metals firm can also help you out by giving you accurate information about what you have to trade or what you might be looking to buy.

With trading on the bullion market, you can do this online. Another possibility is to do offline buying and selling with a mutual fund distributor. With gold and silver trading, it can also be helpful to:

• Brush up on your knowledge of current market conditions
• Get any gold or silver you wish to sell appraised to determine its current value
• Work with an investment professional specializing in bullion and/or precious metals
• Set specific goals for bullion trading that make sense for you 

For information on any aspect of buying, selling, and owning precious metals, call on the experts at First National Bullion and Coin. When they’re looking for accurate information about the markets for precious metals such as gold and silver bullion, Scottsdale collectors trust our reputable dealers. We’re a boutique precious metals firm with experienced professionals, and we work hard to keep our investors informed with the most up-to-date market news. If you’re looking to add precious metals to your portfolio, call us today at (480) 546-5089.

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.