What is a bullion, and what are its characteristics? Bullion is gold bars, silver bars, or other bars, or ingots, of precious metals. The word bullion comes from the French Minister of finance Claude de Bullion. The value of the bullion is determined by the value of the precious metal content, which is defined by its purity and mass.
The specifications of bullion is regulated by market bodies or legislation. In the European Union, the minimum purity for gold bullion which is treated as investment gold with regards to taxation, is 99,5% for gold bars and 90% for gold coins.
The price of gold bullion is influenced, by demand from companies who use gold to make jewelry, and other products, and by perceptions of the overall economy. For example, political, or financial instability, affect the price of gold bullion.