The past week has found many searching for safe haven investing, and all four metals have moved higher.
Since a year ago today, gold is up 13%, silver is 16% higher, platinum is up 1%, and palladium is off 44%.
Think of bullion as a foundational, core holding for the precious metals investor. 20% of bullion is owned by central banks worldwide, and for good reason. Gold bullion can provide stability in times of financial or geopolitical uncertainty like we see today.
Bullion products, whether coins, bars, or rounds, provide an investor with direct exposure to the price movements of the physical metal. That is, most of the value of bullion is from the intrinsic value of the metal itself.
The appearance, historical significance, and condition of bullion play a minor role in determining the value and premiums of bullion products, whereas these factors can make up to 50% or more of the value of rare, collectible, or proof coins and products.
Bullion products fluctuate over time with metals prices, whereas investment-grade coins can increase in value even during periods of lower or stagnant bullion prices.