Gold bullion is referred to as “physical gold;” it’s pure gold (99.9%) that can be bought or sold for investment purposes. Investors can buy gold bullion as bars or coins through banks or bullion dealers, but they must pay a certain premium over the spot price. Investors may hold gold bullion for many purposes including the protection of their wealth.
Since 2002, there has been a significant rise in gold prices and, as a result; those who bought gold bullion bars and coins have done really well.
Going forward, the prospects of holding gold bullion look great. There’s a significant amount of demand emerging from the central banks, which, to begin with, were actually against holding the yellow metal. There’s also huge demand from consumers around the globe, but consumers from India and China are at the forefront of it. They are buying. If the demand remains as it has been, then the price of gold bullion could rise significantly, and those who are buying now will see solid returns on their investments.