What Is Bullion? Bars, Coins, Rounds — Explained for New Buyers

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Beginner’s Guide to Buying Precious Metals

What Is Bullion? Bars, Coins, Rounds — Explained for New Buyers

If you’ve ever asked, “what is bullion?” — you’re not alone. Thousands of new investors ask this every day as they explore gold, silver, platinum, and palladium for the first time.

At its core, bullion is precious metal — refined to high purity and formed into standardized shapes like bars, coins, or rounds — valued by its weight and fineness, not by face value or collectibility.

Whether you’re looking to hedge against inflation, diversify your portfolio, or simply own a tangible asset, understanding what is bullion is your essential first step.

In this guide, we’ll break down:

  • The official definition of bullion
  • Differences between bars, coins, and rounds
  • Which metals qualify as bullion (gold, silver, platinum, palladium, rhodium)
  • How to buy bullion online safely
  • Top starter products for beginners

Let’s demystify bullion — once and for all.

What Is Bullion? The Official Definition

According to the London Bullion Market Association (LBMA), bullion is:

“Gold or silver in bulk form, refined to a high standard of purity, and typically stored as bars or ingots.”

In practice, the term “bullion” also includes government-minted coins (like American Eagles or Canadian Maples) and privately minted rounds — as long as they meet minimum purity standards (usually .999 fine or higher).

Key characteristics of bullion:

✅ Valued by weight and purity — not rarity or design
✅ Typically .999 fine (99.9% pure) or higher
✅ Comes with assay certificates or mint guarantees
✅ Traded close to “spot price” + a small premium

Example: A 1 oz PAMP Suisse Gold Bar (https://metalbullion.store/product/1-oz-pamp-suisse-lady-fortuna-gold-bar-in-assay/ ) is bullion. A 1933 Double Eagle is a collectible coin — not bullion.

What Is Bullion: Bars vs Coins vs Rounds

Not all bullion looks the same. The three main forms are bars, coins, and rounds — each with unique benefits.

  1. Bullion Bars — Lowest Premium, Highest Efficiency

Bullion bars are rectangular ingots cast or minted by private refineries like PAMP Suisse, Valcambi, or Engelhard.

Pros:

  • Lowest premium over spot price
  • High purity (often .9999 fine)
  • Ideal for stacking and long-term holding

Cons:

  • Less recognizable than government coins
  • May require testing when reselling (unless sealed in assay)

Top Picks:

  1. Bullion Coins — Government-Backed, Easy to Resell

Bullion coins are minted by national governments and carry a legal tender face value (though their metal value is far higher).

Pros:

  • Recognizable worldwide
  • Easy to resell
  • Often feature beautiful, changing designs

Cons:

  • Higher premiums than bars
  • Face value is symbolic (e.g., $50 on a 1 oz Gold Eagle worth $2,300)

Top Picks:

  1. Bullion Rounds — Private Mint Designs, Lowest Premiums

Bullion rounds look like coins but are minted by private companies (not governments). They have no face value.

Pros:

  • Lowest premiums (often cheaper than coins)
  • Unique, artistic designs (e.g., Aztec Calendar, Tree of Life)
  • Great for gifting or themed collecting

Cons:

  • Less liquid than government coins
  • Buyer must verify purity/weight

Top Picks:

What Metals Qualify as Bullion?

While gold and silver are the most common, several precious metals qualify as bullion:

🥇 Gold Bullion

The original store of value. Must be at least .995 fine for IRA eligibility.

→ Start with: 1 oz PAMP Suisse Gold Bar (https://metalbullion.store/product/1-oz-pamp-suisse-lady-fortuna-gold-bar-in-assay/ ) or 20 x 1g Valcambi CombiBar (https://metalbullion.store/product/20-x-1-g-valcambi-gold-combibar-in-assay/ )

🥈 Silver Bullion

The “people’s metal.” Must be .999 fine. Used in industry and investment.

→ Start with: Silver Eagle Tube (https://metalbullion.store/product/2022-1-oz-american-silver-eagle-tube-20-coins-bu/ ) or 100 oz Engelhard Bar (https://metalbullion.store/product/100-oz-silver-bar-engelhard/ )

🥉 Platinum & Palladium Bullion

Industrial powerhouses. Used in catalytic converters, electronics, and green tech.

→ Start with: 1 oz Platinum Maple Leaf (https://metalbullion.store/product/1-ounce-platinum-maple-leaf-coin/ ) or 1 oz Palladium Bar (https://metalbullion.store/product/1-oz-palladium-bar/ )

🚀 Rhodium Bullion

The most volatile precious metal. Prices can swing 50% in weeks. High risk, high reward.

→ Start with: 1 oz Rhodium Bar (PAMP Suisse) (https://metalbullion.store/product/1-oz-rhodium-bar-pamp-suisse/ ) or 1 oz Rhodium Tuvalu Dragon Coin (https://metalbullion.store/product/1-oz-rhodium-tuvalu-dragon-coin/ )

What Is Bullion Purity? Understanding .999, .9999, and .9995

Purity is everything in bullion. It’s expressed in “fineness” — parts per thousand.

  • .999 = 99.9% pure (standard for silver and some gold)
  • .9999 = 99.99% pure (“four nines” — common for Canadian/Gold Maples)
  • .9995 = 99.95% pure (standard for platinum and palladium)

For IRAs, the IRS requires:

  • Gold: .995+ fine
  • Silver: .999+ fine
  • Platinum/Palladium: .9995+ fine

Always check the product description. Reputable dealers like Metal Bullion (https://metalbullion.store ) list purity clearly.

Why Do People Buy Bullion? 5 Core Reasons

Understanding what is bullion is only half the battle. Why do people buy it?

  1. Inflation Hedge

When currencies lose value, bullion often gains. Gold rose 500% during the 1970s inflation crisis.

  1. Portfolio Diversification

Bullion has low correlation with stocks and bonds. It reduces overall portfolio risk.

  1. Crisis Insurance

In wars, bank failures, or hyperinflation, physical bullion retains value when paper assets fail.

  1. Tangible Asset

You can hold it, store it, and pass it down. No counterparty risk.

  1. Industrial Demand (Silver, Platinum, Palladium)

Unlike gold, these metals have real-world uses — in solar panels, EVs, and medical devices — creating organic demand.

How to Buy Bullion Online — A Beginner’s Checklist

Ready to buy? Follow this simple checklist:

  1. Choose Your Metal: Gold for safety, silver for affordability, platinum/palladium for growth.
  2. Choose Your Form: Bars for lowest cost, coins for liquidity, rounds for art/design.
  3. Pick a Reputable Dealer: Look for SSL, physical address, and reviews. → Metal Bullion (https://metalbullion.store ) is A+ BBB rated.
  4. Compare Premiums: Don’t overpay. Bulk bars (10 oz, 1 Kilo) offer lowest premiums.
  5. Verify Authenticity: Buy sealed assay bars or government coins. Avoid “too good to be true” deals.
  6. Plan Storage: Home safe, bank box, or vault. → Read: How to Store Gold & Silver at Home (https://metalbullion.store/how-to-store-gold-and-silver-at-home/ )

Top 5 Starter Bullion Products for New Buyers

Overwhelmed? Start with one of these beginner-friendly picks:

  1. Multigram Portfolio (https://metalbullion.store/product/multigram-portfolio-qty-16-2-5-gram-bars-4-ea-in-gold-silver-platinum-palladium/ )
    Get 4 metals in one: gold, silver, platinum, palladium. Only 2.5g each — perfect for learning.
  2. American Silver Eagle Tube (20 Coins) (https://metalbullion.store/product/2022-1-oz-american-silver-eagle-tube-20-coins-bu/ )
    Affordable, iconic, easy to resell. The #1 silver coin in America.
  3. 1 oz PAMP Suisse Lady Fortuna Gold Bar (https://metalbullion.store/product/1-oz-pamp-suisse-lady-fortuna-gold-bar-in-assay/ )
    Sealed in assay, beautiful design, globally recognized. The gold standard for beginners.
  4. Aztec Calendar Silver Rounds (60 Coins) (https://metalbullion.store/product/3pack-of-60-coins-1-oz-silver-round-aztec-calendar/ )
    Ultra-low premium, exotic design. Great for stacking or gifting.
  1. 20 x 1g Valcambi Gold CombiBar (https://metalbullion.store/product/20-x-1-g-valcambi-gold-combibar-in-assay/ )
    Break off 1g pieces as needed. Ideal for emergencies, travel, or teaching kids.

What Is Bullion? Common Myths Debunked

Let’s clear up some confusion:

Myth 1: “Bullion is only for the rich.”
Truth: You can start with silver rounds under $30. The Petit Papillon Bracelet (https://metalbullion.store/product/petit-papillon-bracelet/ ) is a beautiful, affordable entry point.

Myth 2: “Bullion coins are money you can spend.”
Truth: Their face value is symbolic. A Silver Eagle’s $1 face value is irrelevant — its metal value is ~$30.

Myth 3: “All that glitters is bullion.”
Truth: Costume jewelry, plated metals, and collectibles are NOT bullion. Bullion must be high-purity and valued by weight.

Myth 4: “Bullion is illegal to own.”
Truth: Totally false. The U.S. banned private gold ownership from 1933–1974 — but it’s 100% legal today.

Myth 5: “You need a safe deposit box.”
Truth: A quality home safe is sufficient for most buyers. → See our guide: How to Store Gold & Silver at Home (https://metalbullion.store/how-to-store-gold-and-silver-at-home/ )

What Experts Say About Bullion in 2025

  • World Gold Council: “Central banks will continue to buy gold as a reserve asset, supporting prices.” (https://www.gold.org )
  • Silver Institute: “Silver faces a structural deficit. Industrial demand will outstrip supply by 200M oz in 2025.” (https://www.silverinstitute.org )
  • Kitco News: “Platinum and palladium are undervalued relative to gold. Auto sector recovery will drive prices.” (https://www.kitco.com )

What Is Bullion? Your Next Steps

You now know what is bullion — and why it matters. Here’s what to do next:

  1. Decide Your Goal: Insurance? Growth? Gift? → Read: How Much Should You Invest in Precious Metals? (https://metalbullion.store/how-much-should-you-invest-in-precious-metals/ )
  2. Pick Your First Product: Use our Multigram Portfolio (https://metalbullion.store/product/multigram-portfolio-qty-16-2-5-gram-bars-4-ea-in-gold-silver-platinum-palladium/ ) to sample all four metals.
  3. Learn Storage & Safety: → How to Spot Fake Bullion (https://metalbullion.store/how-to-spot-fake-bullion-7-red-flags/ ) + How to Store It (https://metalbullion.store/how-to-store-gold-and-silver-at-home/ )
  4. Buy with Confidence: All products at Metal Bullion (https://metalbullion.store ) come with authenticity guarantees and 30-day returns.

Ready to Buy Your First Bullion? Start Here

Don’t wait. The best time to start was yesterday. The second-best time is today.

👉 Shop Beginner Bullion Bundles (https://metalbullion.store )
→ Start with: Multigram Portfolio (https://metalbullion.store/product/multigram-portfolio-qty-16-2-5-gram-bars-4-ea-in-gold-silver-platinum-palladium/ )

👉 Explore Gold Bars & Coins (https://metalbullion.store )
→ Start with: PAMP Suisse Gold Bar (https://metalbullion.store/product/1-oz-pamp-suisse-lady-fortuna-gold-bar-in-assay/ )

👉 Browse Silver Eagles & Rounds (https://metalbullion.store )
→ Start with: Silver Eagle Tube (https://metalbullion.store/product/2022-1-oz-american-silver-eagle-tube-20-coins-bu/ )

Have questions? Our bullion specialists are standing by at support@metalbullion.store or 1-800-BUY-BULLION.

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