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.

  1. Bullion Coins

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

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  3. Ingot

    A material that has been cast into a shape in order to be transported ...
  4. Unparted Bullion

    Bars or ingots of precious metals that contain substantial amounts ...
  5. Gold Fund

    A mutual fund or exchange-traded fund (ETF) that invests primarily ...
  6. Gold Bug

    An individual who is bullish on gold. Gold bugs believe that ...
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