Definition of Bullion Banks

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The word "bullion" primarily refers to bulk gold or silver that is later melted down to make coins, but the definition can also apply to other kinds of bulk metals, including copper or platinum. Gold bullion companies buy and sell bulk and coined precious metals, and some of the best-known gold bullion companies include JM Bullion, AMPEX and Money Metals. According to the writers for Bloomberg, bullion banks clear, hedge, trade and vault precious bulk metals and also sell them.

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Gold Bullion Companies

JM Bullion is a well-known gold bullion company and sells silver, platinum and gold in bulk quantities. While a typical person is not likely to mint coins or make jewelry from them, they can purchase the goods as an investment.

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JM offers bulk silver and gold at wholesale prices, similar to what you might pay at a large distributor. Money Metals also sells bulk silver and gold in bars, rounds, coins and other products. Like JM Bullion, they show the current trading prices on their web pages and offer sales and special offers like free shipping.

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Additional Bullion Companies

Silver Monthly listed their best ​10 online bullion dealers​, and their top pick was the American Precious Metals Exchange, or AMPEX. Even though this dealer's prices are not generally the lowest, they do not have hidden charges. They also have one of the largest inventories and are open for 24/7 service. Silver Monthly also included Provident Metals, JM Bullion, Westminster Mint and Gold & Silver, Inc. on their list.

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The U.S. Mint also sells precious metals in bulk, but buyers must be accepted by their U.S. Mint Authorized Bulk Purchase Program first. These buyers are required to be active members of the Mint's Numismatic Bulk Purchase Program (NBPP), have a two-year earnings average of at least ​$500,000​ (per year) with NBPP, be in good standing and have complete compliance with the excessive returns policy. These requirements exclude most of the population. If you are interested in pursuing this sort of relationship with the U.S. Mint, you can contact their customer service hotline for help.

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What Are Bullion Banks?

The writers at Bullion Star explain that in addition to clearing, hedging, trading and vaulting precious metals, bullion banks are financial institutions that also distribute the metals, manage risks, mine finance and hedging and intermediate between lenders and borrowers (among other things). Most of their activities are handled through investment banks' foreign exchange and commodities arms or bank corporate finance divisions.

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Just about all of these banks belong to the London Bullion Market Association and the London Platinum and Palladium Market. Some of the world's most active bullion banks include JP Morgan Chase, Morgan Stanley & Co International, Natixis, The Bank of Nova Scotia – Scotia Mocatta and Commerzbank. Investors usually invest in gold and silver ETFs (exchange-traded funds) that they obtain through their financial institutions.

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If you are not familiar with palladium, it is the most valuable precious metal globally, with white coloring and rare chemical properties. It is a key industrial material because it has a melting point of 1,560 degrees Fahrenheit and a low density. It does not react with oxygen and is highly resistant to corrosion. The writers at Gold IRA Guide claim that chain-wide supply shortages from the pandemic have decreased the worldwide palladium supply, thus increasing its demand and driving up its price. To check the current value of this or other precious metals, you can turn to commodities value sources online.

Consider also:Which Is More Valuable: Gold Nuggets or Gold Bars?

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