In the financial world, Physical gold bullion is highly liquid gold that is virtually sold and bought in any country in the world. The 1st hand physical gold bullion refiner accounts from Switzerland state that gold refineries are running 24 x 7 and are having difficulty meeting massive physical gold bullion demand from eastern nations (mainly China).
Physical gold is used for fabricating gold bullion bars, coins, and other investment-grade gold bullion products. China and India are the world’s largest and second-largest physical gold buyers, respectively for both gold jewelry and gold bullion combined. The purchase of gold and silver bullion in Toronto is also increasing at a rapid rate today.
Unlike other assets & investments, gold is universal money that never fails and it does not require counter party to perform. Thus dealing in gold bullion (buying and selling) is similar to saving fiat currency in a bank. The gold bullion value appreciates in the current negative real interest rate environment. The long term owners of gold bullion hold the gold in a coin or bar form as a dependable store of value and universal purchasing power.
These long term gold bullion owners are the national governments, central banks, commercial banks, hedge funds, pension funds, exchange-traded funds, individual investors, and ordinary people the world over. The gold bullion are measured in financial markets by their reciprocal value in various fiat currencies.
In the US, the price of gold bullion is calculated on the basis of fluctuating 1 oz gold spot price in US dollar terms. While the world’s second-largest gold bullion buying nation is India, where the value of gold bullion is measured based on the fluctuating 1 gram gold spot price in the local Indian rupee fiat currency.