Bullion refers to precious metals — typically gold or silver — in bulk form, valued by weight rather than by artistic or numismatic value. Bullion can take the form of bars, ingots, or special coins minted primarily for investment rather than circulation.
Central banks hold bullion as part of their foreign exchange reserves. Fort Knox, the Bank of England’s underground vaults, and the Federal Reserve Bank of New York store thousands of tons of gold bullion, representing national wealth and financial stability.
Why It Matters
Gold bullion has been a store of value for thousands of years. When currencies fail, markets crash, or geopolitical crises erupt, investors flock to gold as a “safe haven.” The price of gold is often inversely correlated with confidence in fiat currencies and stock markets.
The term also appears in slang: “bullion” can mean wealth or riches in general, and the image of gold bars remains a universal symbol of untold fortune.
Examples
- Fort Knox: The U.S. Bullion Depository holds approximately 147 million ounces of gold.
- Gold ETF: Exchange-traded funds that track the price of gold without requiring physical storage.
- Krugerrand: A South African gold coin, one of the most widely traded bullion coins.
Related Terms
- Gold standard, fiat currency
- Ingot, bar, coin
- Safe haven, commodity, reserve