In terms of economics, gold bullion refers to precious metals like gold and silver.
It is available in forms of bars and coins.
There are several reasons behind why people invest in them.
Though it is psychological in nature, a significant chunk of investors around the world believe that price of these precious metals will rise for ever.
Hence they invest in hope of a better return on investment.
There were price fall in several occasions.
But, the luster of investment in gold bullion market has not faded away.
People have made profit and investment in these metals synonymous.
Gold and silver are ideal investment options if the investor is worried about the political situation of the country he/she is residing in.
Bullion market has universal approach and gold can be sold with less hassle.
Hence, people worried about socio-economic, political and currency-based crises related to other financial investment tools find gold as a safe option.
The demand for gold bullion garnered further momentum after the global economic crisis.
With almost all leading stock exchanges trembling like houses of cards, global economic crisis rang the alarm for several financial products.
Real estate, till considered as a safe investment option lost its profit making potential.
Mutual funds and FDI also failed to ensure their earlier profitability.
But at such a juncture, price of gold increased significantly.
Hence, people are showing more inclination towards bullion investment.
Stability is witnessed in bullion market.
It is less volatile to political factors affecting general economy.
Easy liquefaction is also associated with gold and silver bars and coins.
You can liquefy it any time at the hour of need.
Hoarding cash offers you nothing.
In several economies it is a punishable crime too.