Getting Started: New to Precious Metals
Bullion is physical gold, silver, platinum, or palladium in the form of coins, bars, or rounds whose value is based mainly on metal content and weight. Investors buy bullion to help preserve purchasing power, diversify their portfolios, and own a tangible asset that is not tied directly to stocks or bonds.
Bullion products are priced primarily on their metal content plus a premium, so they closely track the underlying metal price. Collectible or numismatic coins can trade at much higher prices because of rarity, age, condition, and collector demand, and their value may move differently than bullion.
Spot price is the current market price for one troy ounce of precious metal for immediate delivery in global wholesale markets. Retail products are priced at spot plus a premium that reflects refining, minting, distribution, and dealer costs, as well as product‑specific demand.
Precious metals are quoted in troy ounces, which are approximately 31.1035 grams, slightly heavier than the everyday ounce used for food and most consumer items. When you see “1 oz” on a bullion coin or bar, it almost always refers to one troy ounce.
A premium is the amount you pay above the metal’s spot price for a specific product. Premiums vary by product type, mint, size, and market demand; popular government‑minted coins typically carry higher premiums than generic rounds or large bars, especially in periods of high demand.
Gold is compact, highly valued, and often used as a long‑term store of value or “wealth insurance.” Silver offers a lower cost per ounce and more exposure to industrial demand, and many investors choose to hold some of each to diversify within their metal’s allocation.
There is no one‑size‑fits‑all allocation. Many investors treat physical metals as a hedge or insurance and adjust their percentage based on risk tolerance, time horizon, and what else they own, ideally with input from a financial or tax advisor. We always encourage you to speak with a financial or tax professional about what makes sense for your specific situation before making larger allocations.
Smaller pieces—such as 1 oz coins or bars—are easy to understand, widely recognized, and flexible when it comes time to sell. Larger bars may offer lower premiums per ounce but are less flexible if you want to liquidate only part of your holdings.