Bullion Market

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DEFINITION of 'Bullion Market'

A forum through which buyers and sellers trade pure gold and silver. The bullion market is open 24 hours a day and is primarily an over-the-counter market, with most trading based in London. The bullion market has a high turnover rate and most transactions are conducted electronically or by phone. Gold and silver derive their value from their industrial and commercial uses; they can also act as a hedge against inflation.

INVESTOPEDIA EXPLAINS 'Bullion Market'

The bullion market is just one of several ways to invest in gold and silver. Other options include exchange-traded funds, futures, options and mutual funds; these can be more appealing to investors, because they offer greater flexibility. Bullion offers less trading flexibility than other gold and silver investments, because it is a tangible object that comes in bars and coins of established sizes, which can be difficult to buy or sell in specific amounts. Bullion is also expensive to store and insure.

RELATED TERMS
  1. Bullion Coins

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  3. Unparted Bullion

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