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Gold bullion refers to a bulk quantity of gold. Gold bullion is traded in commodity markets in the form of ingots, bars, or coins. Unlike money, gold bullion is valued by its purity and its mass. A gold bullion must be at least 99.5% pure. Purchasing gold bullion offers an investor a way to invest directly in gold. Gold bullion is a tangible investment in which value can be stored. Investing in gold bullion can provide an hedge against inflation and is often seen by investors as a way to diversify their portfolio. Investing in gold bullion is not the only way an investor can invest in gold. Indirect ways to invest in gold include using certificates, derivatives, gold stocks, or gold ETFs.
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