Bullion Market

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.

BREAKING DOWN '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

    Gold and silver that is officially recognized as being at least ...
  2. Gold Fund

    A mutual fund or exchange-traded fund (ETF) that invests primarily ...
  3. Bullion Coins

    Coins made from precious metals that are generally used for investment ...
  4. Unparted Bullion

    Bars or ingots of precious metals that contain substantial amounts ...
  5. Silver Certificate

    Former legal tender (paper currency) issued by the U.S. government ...
  6. Digital Gold Currency - DGC

    An electronic, private currency backed by gold bullion. Companies ...
Related Articles
  1. Options & Futures

    Getting Into The Gold Market

    Add some sparkle to your portfolio by getting in on this classic commodity.
  2. Mutual Funds & ETFs

    The 4 Largest Silver ETFs (SLV, SIVR)

    Learn the names of the four largest silver ETFs by asset size. Discover some basic facts about each of these ETFs and what differentiates them from one another.
  3. Mutual Funds & ETFs

    (BK, SIVR, AGQ) 3 Bond ETFs in the Silver Sector

    Find out about the top ETFs that track the silver sector, such as the iShares Silver Trust ETF, ETFS Physical Silver Shares ETF and ProShares Ultra Silver ETF.
  4. Investing News

    London's Effect On Gold Prices

    Read about the nearly 100-year-old London gold fix, why the process may be winding down and how Shanghai now threatens London as the world's gold master.
  5. Investing

    Why Gold and Silver Prices are Diverging (GLD, SLV)

    Gold and silver prices are seeing a big performance divergence in 2016. Here's why.
  6. Mutual Funds & ETFs

    (GLD) SPDR Gold Shares: Who Is Invested?

    Learn about SPDR Gold Shares, including why it may be a good way to diversify a portfolio, who owns it and how it has performed in recent years.
  7. Mutual Funds & ETFs

    The Top 3 Silver ETFs (SLV, SIVR)

    Like any tradable asset, silver and silver ETF prices are governed by the fundamental market economic forces of supply and demand.
  8. Options & Futures

    An Introduction To Trading Silver Futures

    Silver Futures are becoming popular trading instruments. Here is a primer on how to trade them.
  9. Options & Futures

    How Safe Are Gold And Silver Investments?

    Contrary to both tradition and popular opinion, gold and silver may not be the best hedges against inflation nor the safest of havens.
  10. Mutual Funds & ETFs

    GLD: iShares Gold Trust ETF

    Learn about the SPDR Gold Shares ETF, how it tracks the price of gold, and what type of investors may want to hold shares in their portfolios.
RELATED FAQS
  1. What other options does an investor have to buying physical silver?

    Explore the various investment choices available for traders seeking to invest in the silver market, along with the advantages ... Read Answer >>
  2. For investors, what are the alternatives to owning physical gold?

    Learn some of the primary alternate ways that someone can invest in the gold market besides simply purchasing physical gold ... Read Answer >>
  3. Can I invest in gold or silver with my Roth IRA?

    Learn how you can purchase gold coins and bars with your Roth IRA, or how you can diversify part of your assets by purchasing ... Read Answer >>
  4. Has gold been a good investment over the long term?

    Examine the performance of gold as an investment, dating back to 1933, when President Roosevelt required all gold bullion, ... Read Answer >>
  5. What options strategies are best suited for investing in the metals and mining sector?

    Learn about options strategies for the metals and mining sector, such as call and put options for gold exchange-traded funds, ... Read Answer >>
  6. Why should you invest in tangible assets?

    Read about some of the possible benefits of investing in tangible assets, such as bullion, real estate, art, collectibles ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center