Bullion Market

What is a Bullion Market?

A bullion Market is a market through which buyers and sellers trade gold and silver as well as associated derivatives. A bullion market is a place where exchanges of silver and gold take place over the counter and in the futures market. Trading in bullions market is open 24 hours. Bullion markets exist across the globe, and most of the transactions take place through electronic means or by phone.

The versatile uses of silver and gold in many areas especially its industrial applications decide the prices of the precious metal. Bullions are considered as a safe bet to hedge against Inflation or as a Safe Haven for investment. The London Bullion Market is known as the primary global bullion market trading platform for gold and silver.

Bullion market trading is known to have a high turnover rate with transactions conducted electronically or by phone. Gold and silver traded in the bullion market can at times be used as hedge against inflation which may also affect its trading value.

The bullion market is just one of several ways to invest in gold and silver. Other options include Mutual Funds and Exchange Traded Fund (ETF). These options can be more appealing to investors, because they offer greater flexibility.

Physical bullion have less trading flexibility compared to other gold and silver investments, because it is a tangible object that comes in bars and coins of established sizes, which can be difficult to buy or sell in specific amounts.