What Is Gold Bullion?
Gold bullion refers to physical gold in the form of bars, ingots, or coins that is valued primarily by its precious metal content rather than its numismatic or collectible value. For centuries, gold bullion has served as a store of value and medium of exchange.
Understanding Gold Bullion
What Qualifies as Bullion?
| Characteristic | Requirement |
|---|---|
| Purity | Minimum 99.5% (995 fineness) |
| Form | Bars, coins, ingots, or wafers |
| Valuation | Based on metal content, not rarity |
| Certification | From recognized refiners/mints |
Types of Gold Bullion
Gold Bars vs Gold Coins
| Feature | Gold Bars | Gold Coins |
|---|---|---|
| Premium | Lower (2-5% over spot) | Higher (5-15% over spot) |
| Sizes | 1g to 400oz | 1/10oz to 1oz typically |
| Liquidity | Good | Excellent |
| Recognition | Depends on refiner | Universally recognized |
| Storage | Easy stacking | More space needed |
| Best For | Larger investments | Smaller holdings, gifts |
Popular Gold Bar Sizes
| Size | Typical Use | Approximate Value (2026) |
|---|---|---|
| 1 gram | Entry level, gifts | ~S$120 |
| 10 grams | Small investors | ~S$1,200 |
| 1 oz (31.1g) | Standard investment | ~S$3,800 |
| 100 grams | Serious investors | ~S$12,000 |
| 1 kilogram | Large investors | ~S$120,000 |
Gold Purity Standards
| Purity | Fineness | Common Names |
|---|---|---|
| 99.99% | 9999 | Four nines, pure gold |
| 99.9% | 999 | Three nines |
| 99.5% | 995 | IPM minimum in Singapore |
| 91.67% | 916 | 22 karat (coins) |
Why Invest in Gold Bullion?
| Benefit | Explanation |
|---|---|
| Wealth Preservation | Maintained value for 5,000+ years |
| No Counterparty Risk | Physical ownership, no third-party dependence |
| Inflation Hedge | Historically protects purchasing power |
| Portfolio Diversification | Low correlation with stocks and bonds |
| Global Liquidity | Accepted and traded worldwide |
| Privacy | Tangible asset outside banking system |
Gold Bullion in Singapore
Singapore offers unique advantages for gold bullion investors:
| Advantage | Details |
|---|---|
| GST-Exempt | IPM gold exempt from 9% GST |
| No Capital Gains Tax | Profits not taxed |
| Stable Jurisdiction | AAA credit rating, strong rule of law |
| Secure Storage | World-class vault facilities |
Conclusion
Gold bullion remains the gold standard for precious metals investment. Whether you choose bars or coins, physical gold provides tangible wealth preservation that has stood the test of time.
Ready to start? Visit BullionStar to explore their selection of gold bullion products.