When people start buying gold or silver, they’ll call almost anything “bullion.” Money Metals Exchange CEO Stefan Gleason uses the word in a tighter way: bullion is precious metal made to known purity levels and sold in forms that can be checked and priced like a commodity, not a decorative object.
Bullion is an investment standard, not a style choice
In the trade, “bullion” usually means metal that meets the London Bullion Market Association (LBMA) purity rules:
Gold: at least 99.5% pure
Silver: at least 99.9% pure
Platinum: at least 99.95% pure
Palladium: at least 99.95% pure
Purity is only part of it. LBMA rules also cover weights, markings, and which refineries are accepted. That’s what makes a bar or coin easy to value and easy to sell in many markets.
Where the word comes from
“Bullion” comes from an old Anglo-French term tied to uncoined metal used for minting. The idea hasn’t changed much. The metal is valued for what it is, not for the artistry around it.
What exactly is "Bullion"? 🤔
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It’s not just generic metal. To qualify as investment-grade bullion, it must be recognized for high purity, typically 99.5% for gold $GLD and 99.9% for silver $SLV
In our new 2026 Guide, we break down the 3 main forms:
Item 1: 🪙 Coins (Government issued)
Item 2: ⚪ Rounds (Private mints)
Item 3: 🧱 Bars (Valued by weight)— Money Metals Exchange (@moneymetals)
2:28 PM • Jan 28, 2026
The checkability piece: why sourcing matters
A product can be made of gold and still be a bad deal if it can’t be verified and traded like standard metal. Dealers that stick to well-known refineries lean on a few boring but useful habits:
Approved refiners and mints, with documented specs
Serial numbers on many bars, tied back to the maker
Assays and spot checks that confirm weight and fineness
That’s the difference between “this is gold” and “this is gold that the market will treat as bullion.”
Physical bullion vs paper exposure
Owning bars or coins means you own the metal itself. You’re not relying on a fund sponsor, a broker, or a clearinghouse to make you whole.
Physical ownership comes with real-world chores, though: storage, insurance, and security. Those costs are part of the deal.
Taxes: how the IRS treats bullion
In the U.S., many investment-grade precious metals fall under the IRS “collectibles” rules, which can mean a higher long-term capital gains rate than stocks. Some coins and bars can be held through certain self-directed IRA setups, as long as they meet the eligibility rules and are stored with an approved custodian.
Common mix-ups
Jewelry and decorative pieces can contain precious metal, but they’re priced and traded differently.
Rare coins are priced on scarcity and condition, not just metal content.
ETFs and futures track metal prices, but they aren’t the same as holding metal in your hand.
Bullion isn’t limited to gold and silver. Platinum and palladium products can qualify when they hit the same purity and market standards.
Why LBMA standards matter
The LBMA’s “good delivery” framework is a big reason bullion is liquid. When buyers know a refinery and a standard bar size, pricing stays tight and resale is straightforward.
If you’re shopping, the practical test is simple: are you paying for metal value, or are you paying for collectibility. The price tag usually tells you which one it is.