The common perception is that rectangular bits of gold (“bars”) are the most cost-effective, and perhaps the only available, form of gold bullion. The same thinking has it that round bits of gold (“coins”) are limited in supply, expensive, and perhaps, to some extent, collectors’ items.

When you go to buy gold for gold’s sake, what you are looking for is bullion. Bullion is a recognized weight and fineness of gold that you can purchase for the current price of gold, plus the small percentage costs incurred in refining, fabricating, storage, insurance and shipping that bullion to you.

The word ‘bullion’ has a very simple definition: it is simply a refined and stamped weight of precious metal. Our traditional view of gold bullion is the large gold ‘bricks’ that we imagine are stored in Fort Knox. You might remember seeing them in the old James Bond movie “Goldfinger.”

And, sure enough, much of the world’s bullion gold is in the form of refined gold in large bars, held in central bank storage. These are the “London good delivery” bars of approximately 400 troy ounce size, refined and cast by the various private refiners worldwide, and accepted for ‘delivery’ into London and other major gold markets.

Smaller bars of gold in sizes from the tiny 1-gram jewellery trinkets up to 32.15-ounce kilogram bars have also been poured by various refiners around the world.

These are very popular in the retail gold bullion market worldwide, particularly in parts of Europe, the Middle East, and Asia. Buying gold in bar form gives people around the world a way to build wealth without depending on the changing value and acceptance of the local currency. For people everywhere in the world, a gold hoard is a private and permanent hedge against many possible contingencies.