For centuries, people have held gold in high regard. It is the most desirable metal in the world and has played a significant role in the growth of economies around the world. It is the one commodity that keeps its value even in times of global economic turmoil when bonds and stocks crash. People invest in gold bullion protect their wealth and when the price peaks, they reap the rewards of their investment by selling their gold bullion to a gold bullion dealer Brisbane.
What exactly is gold bullion?
The term “bullion” refers to gold that has been refined to a 99.9% purity and then moulded into bars or coins. The word is derived from “bouillon”, the French word for boiling.
There was a time when gold was used as actual currency. It was part of an economic system called the Gold Standard, when the value of money was backed by actual gold. Countries now use fiat money which is currency that governments set up. With the fiat system, the value of currency is based on supply and demand, not some physical commodity.
Gold bars and ingots have been used as far back as Ancient Rome. Romans used bullion bars in ancient Mesopotamia. Gold was formally used in the modern financial system since the 1700s.
The Bank of Britain created the first gold reserve. It began minting gold into coins in the 18th century. These coins were used in English colonies, America also used the same coins until it’s independence from Britain. Gold coins were minted under the coinage act of 1792 in America. Gold coins stayed in circulation until President Roosevelt signed an order forbidding the ownership of gold. Today, countries create currencies from less valuable metals like copper or nickel. However, gold still plays an important role in the global financial system.
Gold bullion is the best, traditional way to invest in gold. Pure gold is soft and can be manipulated without breaking or getting damaged. Gold also has some incredible properties. It is malleable, can withstand extreme temperatures and pressure, it is also a good conductor of electricity.
Process of making gold bullion
Step 1: Mining
Gold is mined from the earth using explosives and hydraulic water jets. The rock taken fro. The earth is reduced into a sandy texture. It is mixed with a special chemical solution and then heated at very high temperatures. The gold will separate from other metals and sink to the bottom where it can be collected.
Step 2: Refining
- Gold that has gone through the smelting process still has a lot of impurities. To remove these chemicals and pressure are added in a high temperature furnace. Gold can be further refined using technology like electro-refining. Once it is refined, it is tested to ensure that it is 99.9% to be classified as .999 fine. Scrap gold also goes through this process for it to be turned into something new.
Step 3: Pressing
Once gold is pure it is cooled and reheated to cast in bar-shaped moulds. The gold is left to cool and then it is removed and tested. A high pressure device is used to apply markings. A gold bullion dealer Brisbane will then buy the gold to sell to investors.