Bullion is a bulk quantity of precious metal, usually gold, platinum, or silver, assessed by weight and typically cast as ingots or bars. Dealers and some banks and brokerages sell bullion. Bullion coins are struck from precious metal—usually gold, platinum, or silver—and kept as an investment. They are not used in daily commerce.

The value of bullion coins is determined mostly by their precious metals content rather than by rarity and condition. Prices may change throughout the day, depending on the prices for precious metals in the world markets. Coin dealers and some banks, brokerage firms, and precious metal dealers buy and sell bullion coins. The U.S. Mint has produced gold and silver bullion coins for investment purposes since 1986 and began producing platinum bullion coins in 1997. The U.S. Mint guarantees the precious metal weight, content, and purity of the coins they produce.

Action items:

1. Listen to business news on the internet, radio, or television.

What are the current quotes for an ounce of gold and an ounce of silver? Are the prices of precious metals going up or down? How do the latest prices compare with the prices quoted in the chapter?

What might be some reasons for fluctuations in the prices of precious metals?

2. Check out the seller by entering the company's name in a search engine online. Read about other people's experiences with the company. Try to communicate offline if possible to clarify any details. In addition, contact your state attorney general and local consumer protection agency. This kind of research is prudent, although it isn't foolproof; it may be too soon for someone to realize they've been defrauded or to have lodged a complaint with the authorities.