"Physical precious metal (gold, silver, copper, platinum, or other metals) in the form of bars, rounds, or coins, valued by weight and purity rather than face value or collectible rarity."
Bullion refers to physical precious metals in their purest, most tradeable form. The word comes from the Old French term for a mint or melting house, and it has described high-purity metal held as a store of value for centuries. Today it covers everything from a 1oz copper round bought by a first-time stacker in New Zealand, to a 400oz gold bar held in a central bank vault.
The key distinction with bullion is that it is valued by what it is made of, not what it looks like. A bullion bar or round is priced based on its weight and metal purity, not on artistry, rarity, or collector demand. This makes it one of the most transparent and liquid forms of investment available anywhere in the world.
Unlike shares, managed funds, or cryptocurrency, bullion has no counterparty risk. It does not depend on a company performing well, a platform remaining solvent, or a government backing its value. It simply is what it is: real, physical metal with intrinsic worth recognised globally.
Bars
The most efficient bullion format by cost. Bars are flat, rectangular pieces of metal produced by mints and refiners. They are easy to store, stack neatly, and typically carry the lowest premium over spot price of any bullion format. Available in sizes ranging from 1 gram to 1 kilogram and beyond.
Rounds
Circular, coin-shaped pieces of bullion that are not legal tender. Rounds are produced by private mints and typically feature decorative designs on the obverse and reverse. They are popular with collectors and stackers who appreciate the aesthetic of a coin format without the higher premiums of government-minted coins.
Coins
Government-issued bullion coins such as the Gold Kiwi, Australian Kangaroo, or Canadian Maple Leaf. These are legal tender in their country of issue and carry a face value, though their intrinsic metal value far exceeds it. Government coins typically carry higher premiums than bars or rounds but are the most widely recognised internationally.
At Williams Bullion, our range focuses on bars and rounds, the formats that offer the best value per gram of metal for New Zealand stackers and investors. All products are clearly labelled with metal type, weight, and purity so you know exactly what you are buying.
Bullion purity is expressed as a decimal indicating the proportion of pure metal in a piece. A purity of .999 means 99.9% of the piece is the stated metal, with the remaining 0.1% being trace elements from the refining process. This is the standard for investment-grade bullion worldwide.
| Purity Mark | Metal Content | Common Name | Typical Use |
|---|---|---|---|
| .999 | 99.9% pure | Three nines | Silver, copper, platinum bullion (investment standard) |
| .9999 | 99.99% pure | Four nines | Gold bullion (investment standard, GST-exempt in NZ) |
| .99999 | 99.999% pure | Five nines | Highest refinement grade (rare, used in specialist applications) |
| .995 | 99.5% pure | Two nines five | Minimum gold purity for GST exemption in New Zealand |
| .925 | 92.5% pure | Sterling | Sterling silver (jewellery grade, not bullion standard) |
Bullion pricing is transparent and globally consistent, which is one of its great advantages over other asset classes. Understanding two terms (spot price and premium) gives you everything you need to evaluate any bullion purchase.
The Spot Price
The spot price is the current global market price for one troy ounce of a given metal, traded on international commodity exchanges. It changes every second during trading hours and is the same whether you are buying in New Zealand, Australia, or the United Kingdom. The spot price is your baseline. It is what the raw metal is worth at any given moment.
The Premium
The premium is the amount charged above spot price to cover the costs of refining, minting, quality assurance, and dealer margin. Every piece of physical bullion carries a premium. Larger bars typically carry lower premiums than rounds or small denominations. When you sell bullion, you generally receive spot price or slightly below, so buying at lower premiums gives you a better entry point.
Troy Ounce vs Avoirdupois Ounce
Precious metals are weighed in troy ounces, not the standard ounces used for everyday items. One troy ounce equals 31.1 grams, while a standard avoirdupois ounce is 28.35 grams. Some copper products are sold in avoirdupois ounces (AVDP oz). You will see this clearly noted on all relevant Williams Bullion product pages.
NZD vs USD Pricing
Global spot prices are quoted in US dollars. When you buy bullion in New Zealand, the price is converted to NZD at the current exchange rate. This means the NZD price of bullion is affected by both the metal's spot price and the NZD/USD exchange rate. A falling New Zealand dollar can increase the local price of gold even if global spot is unchanged.
| Feature | Bullion | Shares | Crypto |
|---|---|---|---|
| Physical ownership | ✓ | ✕ | ✕ |
| No counterparty risk | ✓ | ✕ | ✕ |
| Globally liquid | ✓ | Partial | ✓ |
| Inflation hedge | ✓ | Partial | ✕ |
| Thousands of years of track record | ✓ | ✕ | ✕ |
| No income or dividends | ✓ | ✕ | ✓ |
| Low entry point available | ✓ | ✓ | ✓ |
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