Let’s Get Physical was a song made famous in the 70’s by Olivia Newton John. Whenever I hear it I think of bullion. In precious metals lingo “physical” means the real stuff. The hold in your hand shiny metal. Yes, its value is dictated daily by the “paper” gold traders but the truth is paper burns and disintegrates but metal doesn’t go anywhere. It retains its value long after the last embers extinguish. Currencies come and go but gold, dug out of the ruins can be shined up and traded the same day. Gold has inherent value. It’s as good as gold!
It’s estimated that all the gold ever mined amounts to about 160,000 tonnes. Approximately 80 million troy ounces are produced each year amassing a volume that would easily fit into the average two-car garage. About 75% of all the gold produced is used in jewellery and the remaining 25% is used in electronics, medical devices, various other industrial purposes and bullion. Bullion is money.
Buying and storing bullion is easy. A single ounce of gold is a wafer a little narrower than a credit card and twice as thick. A shoebox full would fund your retirement. Nobody needs to know you have it and it’s super easy to spend. Physical gold purchasers in Europe have been buying a new gold product called CombiBars. These are credit card sized gold wafers perforated into one gram sections ready to be broken off like a chocolate bar and spent.
Also in Europe, Gold to Go bullion vending machines also known as Gold ATMs have become increasingly popular with over 30 million euros worth of bullion being withdrawn from the machines since the first installation in 2010. Populations becoming distrustful of the purchasing power of their local currency find security and protection in bullion. In major cities, bullion can usually be purchased anywhere that foreign currency is exchanged. Online purchasing of bullion coins, bars and wafers is common and reliable. Popular bullion vendors are GoldSilver.com and www.Kitco.com.
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“Gold Bar”: Image courtesy of ponsulak/FreeDigitalPhotos.net
“Gold Bars”: Image courtesy of Stuart Miles/FreeDigitalPhotos.net
“Money”: Image courtesy of Idea Go/FreeDigitalPhotos.net