5 Important Things About Gold Bullion, the Most Solid Safe Haven Instrument Other Than Crypto!
Jakarta, Pintu News – You may often hear the term gold bullion when talking about precious metal investments, but what exactly does it mean? Simply put, gold bullion is pure gold in the form of bars or coins whose value is determined purely by their weight and purity, rather than by their artistic value or design.
Amidst the high volatility of the crypto market, understanding the characteristics of gold bullion is essential if you want to have a universally recognized hedging asset around the world.
Get to know the shape and purity of Gold Bullion
Gold bullion is generally produced by authorized refiners with very high purity levels, usually reaching 99.9% or 24 carats. You can find this asset in various weight sizes, ranging from the smallest unit of 0.5 grams to large 1 kilogram bars that are often stored by central banks. If you monitor the forex market, the price of gold bullion is strongly influenced by the world gold price index which is currently in the range of $85 per gram or the equivalent of Rp1,424,515 (exchange rate of Rp16,759).
The uniqueness of gold bullion compared to jewelry is that there are no expensive design or manufacturing costs, so the value you pay is purely for the gold. Every genuine gold bullion bar comes with a unique serial number and a certificate from a trusted institution such as LBMA (London Bullion Market Association) or Antam (ANTM). This gives you the same strong sense of security as storing your Bitcoin in a private cold wallet that has a high level of encryption security.
Gold Bullion Investment Benefits for Investors
One of the main advantages of owning gold bullion is its high liquidity, where you can resell it anytime in any part of the world at a transparent price. This type of gold is considered a “wealth-preserving” asset as it tends to increase in value over the long term and is able to resist the inflationary scourge of fiat currencies. You can use it as a financial safety net when your cryptocurrency portfolio is experiencing turmoil due to volatile bearish market trends.
Additionally, gold bullion has nocounterparty risk if you store it physically in a safe place. This means that the value of your gold doesn’t depend on the performance of a particular company or the stability of the banking system, unlike stocks or other digital assets. If you own 1 kilogram of physical gold worth Rp1,424,515,000, the asset will remain yours in real terms as long as you take good care of it. This strategy is perfect for those who prioritize capital safety over fleeting speculative gains in the digital market.
Difference between Gold Bullion and Gold Jewelry
It’s important to be able to differentiate between gold bullion and gold jewelry to maximize your investment goals. Gold jewelry usually has an admixture of other metals such as copper to make it stronger, so the grade is often only 18 carats or 75%, and the price includes artisan fees. When you resell the jewelry, the artisan fee is usually forfeited, so the return on investment is not as effective as when you hold pure gold bullion bars.
In the crypto world, this distinction is similar to holding a fundamental asset such as Ethereum compared to holding NFT tokens whose value is highly dependent on art market demand. Gold bullion is a boring yet stable asset, while jewelry is more of a lifestyle that has aesthetic value alongside its economic value. By understanding these differences, you can be wiser in allocating funds to various investment instruments to create a balanced portfolio between digital growth and physical asset stability.
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Gold-Based Crypto: When Physical Assets Meet Crypto Technology
As blockchain technology develops, gold can now be owned not only in physical form such as jewelry or bars, but also in digital form through gold-based crypto assets.
One of the most popular is Tether Gold (XAUt), a physical gold-backed ERC-20-based stablecoin, where 1 token represents 1 troy ounce of pure gold. The gold is stored in vaults in Switzerland and each token is directly linked to certified gold bullion. The system uses automated algorithms to efficiently manage the allocation of gold and Ethereum addresses.
XAUt tokens are available and traded on various crypto exchanges. XAUt is also an attractive alternative for those looking to hedge against inflation or global economic uncertainty, while remaining within the digital asset ecosystem.
*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin (BTC) and other crypto asset investments are the responsibility of the reader.
Reference:
- Heygotrade. Getting to know Gold Bullion. Accessed February 26, 2026.
