Bullion is a terminology used to refer to an amount of gold or silver of purity levels of 99.5% or higher before it has been turned over for coinage. But coins which are not used in financial circulation and are valued only by weight of the metal present are also included under the bullion category. Typically, in India, gold coins, ingots and bars are the ones that are acceptable under the bullion category.
Investment through gold bullion is considered by many to be a wise financial decision. Despite the lowering rates of gold all across the nation, people still have their hopes up on this precious yellow metal. It’s because of the predominance of the gold buying tradition that has ingrained itself deeply into the Indian psyche. Though most of the buying happens in the form of jewellery, gifts are also given in the form of gold coins. These gold coins naturally show up as an investment later on. Contrary to the normal view, investing in gold bars is also as fruitful a decision. Gold, generally available in the market at 22 Karat and 24 Karat purities, should be bought with care and attention should be paid to safeguarding the same.
Gold Bullion Options
Gold bullion is basically gold in forms that are valued as per the amount of the metal in them, devoid of any other financial, artistic or commercial value. Out of ingots, bars and coins are the options that are available for Indians. In addition to that, one can even buy spot contracts and future contracts of gold through registered companies and get a physical volume of the amount of gold in return, in the form of bars.
Gold Bars - Gold bars are readily available at most jewellery stores, banks and even online outlets. These bars come with a certificate of authenticity and their purity is mentioned in the certificate itself. Hallmark BIS gold bars are offered from almost every source that deals in gold bars.
- HDFC Bank - From denominations of as low as 5 grams to as high as 100 grams, HDFC Bank offers gold bars of 24 Karat purity which are imported from Switzerland. These bars also known as Mudra Pure Gold Bars come with a 99.99% purity and have competitive prices based on the market price of gold
- ICICI Bank - From denominations of 0.5 grams to 100 grams, ICICI Bank offers 24 Karat pure gold through select branches and online banking. These come with 99.99% purity and are imported from Switzerland
- FINCO India - This is a popular portal that allows people to buy and sell gold bars of denomination as low as 100 milligrams. FINCO provides market rates for all transactions
Gold Coins - Gold coins are more readily available than gold bars, in denominations of 5 grams to mostly 50 grams. Quite a few shopping portals and online jewellery shops offer BIS Hallmark gold coins of 24 Karat purity through online transactions. These include Snapdeal, PN Gadgil and FINCO India, and banks also offer gold coins in denominations of 2 grams all the way up to 50 grams.
Contracts (Spot and Future) - These are options wherein one has a deferred access to actual bullion. Spot contracts and future contracts are available from MCX, NCEDX, Bullion India, RSBL among others. While spot contracts are delivered immediately, they are subject to a lot of market volatility. Future contracts protect against market volatility of gold rates but come with an extended deferration of delivery.
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