The spot/indicator price of gold is up over 447% from January of 2000 to December of 2011, with many experts calling for $2,500 per ounce gold in the near-term. For a free gold information kit please click here.
When considering gold for the first-time, the first thing that comes to most peoples’ minds is gold bullion. This is probably because bullion represents the majority of available gold in the marketplace, and bullion is heavily marketed by companies and even government mints. Bullion can be bought and sold with ease in two forms:
- Bullion coins
- Bullion bars and ingots
Gold Bullion Coins
Gold bullion coins are legal tender of the country of issuance, and their gold content is guaranteed. Each bullion coin bears a face value that is largely symbolic; its true value depends on its gold content and the day-to-day changing price for gold. While bullion coins are normally purchased for their intrinsic value, they are also appreciated for their artistic appeal and beauty.
Bullion coins are available in a variety of sizes, ranging from 1/20 oz. to 1 Kilo, but the most popular and widely traded size is 1 ounce. A bullion coin provides outright, direct ownership of pure gold, and because it is legal tender, its authenticity is guaranteed by the country of origin. Gold bullion coins can be easily bought and sold virtually anywhere in the world. Among the most popular bullion coins are the Gold American Eagle, the Gold American Buffalo, the South African Krugerrand, the Gold Canadian Maple Leaf, the Australian Kangaroo Nugget, and the Austrian Vienna Philharmonic.
Gold Bullion Bars and Ingots
Gold bullion can also be acquired in bars or ingots. These bars can be readily obtained in a variety of weights and sizes, ranging from as small as one gram to 400 ounces, though the 1 ounce to 10 ounce sizes are the most popular for individual buyers. There are over 90 recognized bar manufacturers and brands produced in at least two-dozen countries around the world. The manufacturers combined put out hundreds of types of gold bars.
Gold Bullion Pricing
Prices for bullion coins and bars are based on the underlying price of gold bullion, plus a small premium, which can fluctuate depending on current market conditions. The underlying price is usually referred to as the “spot price.” The term “spot” is used in commodities trading to denote something which can be delivered for immediate settlement. Typically these contracts are for 100 ounces or more.
Executive Order 6102
When considering owning gold bullion, you should be aware that the U.S. has had bans against or financial disincentives for the private ownership of gold in the past. This is one reason why the U.S. government has reporting requirements for bullion transactions.
America has had four gold confiscations over the course of our history, including the one which was ordered in 1933 at the height of the Great Depression. In that year, under the authority of the Emergency Banking Act, President Franklin Delano Roosevelt issued Executive Order No. 6102, which ordered all privately owned gold bullion and bullion certificates in the United States be confiscated by the government. In return for their gold, Americans would receive paper money.
From 1933 until 1974, it was illegal for U.S. citizens to own gold. However, what few people realize is that, when the freedom to own gold was restored in 1974, a provision of the Federal Reserve Act was retained which permitted the Secretary of the Treasury to require individuals to surrender their gold bullion. This action would most likely be started by an Executive Order from the president. To this day, the private ownership of gold is a privilege allowed by the federal government, and not a right granted by our constitution.
In addition to gold; silver, platinum and palladium can all be purchased in bullion form. For pricing, availability and more information please contact an ITM Trading representative at 888-OWN-GOLD (888-696-4653).