Precious Metal Bullion
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A Precious Metal Bullion is a investment asset in the form of physical precious metal (traded primarily for its intrinsic value based on the content of the metal).
- Context:
- It can (typically) be considered highly liquid, as it is widely recognized and easily traded globally.
- It can (typically) be bought and sold based on the Spot Price of the metal, with an additional premium to cover manufacturing and distribution costs.
- It can (often) be subject to Material Purity Standards, with gold bullion, for example, typically being at least 99.5% pure.
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- It can be held as a form of investment, often as a hedge against inflation or economic instability.
- It can be stored in secure locations such as vaults or safety deposit boxes to protect against theft or loss.
- It can be issued by governments (as in the case of bullion coins) or private mints.
- It can be used in industrial applications, especially for metals like platinum and palladium.
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- Example(s):
- Gold Bullion, typically composed of gold bars or coins with a high degree of purity.
- Silver Bullion, often available as coins, bars, or rounds, used both for investment and industrial purposes.
- Platinum Bullion, available as bars or coins, known for its high value and rarity.
- Palladium Bullion, primarily used in automotive and electronics industries, but also available for investment.
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- Counter-Example(s):
- Fiat Currency, which does not have intrinsic value based on metal content.
- Base Metal, such as copper or zinc, which is not classified as a precious metal due to its lower economic value.
- Cryptocurrency, which is digital and not tied to any physical metal content.
- See: Gold Reserve, Commodity, Hedge Against Inflation, ISO 4217, Physical Asset.