Gold & Silver Bullion FAQs – 25 Common Questions Answered
Whether you’re new to buying precious metals or you’re an experienced collector, it’s natural to have questions. We’ve answered some of the most common questions we receive at 156Bullion to help you buy with confidence.
1. What is bullion?
Bullion is precious metal, such as gold, silver, platinum or palladium, valued primarily for its metal content. Bullion is commonly produced as bars, coins and rounds.
2. What’s the difference between bullion and collectible coins?
Bullion products are generally valued mainly for their precious metal content, while collectible coins often carry additional value due to their rarity, limited mintage, design, condition or historical significance.
3. What does .999 fine silver mean?
.999 fine silver means the item contains 99.9% pure silver, with only a tiny amount of other metals.
4. What does .9999 fine gold mean?
.9999 fine gold means the gold is 99.99% pure, making it one of the highest purity standards available.
5. What is a troy ounce?
A troy ounce is the standard unit used to measure precious metals and equals 31.1035 grams.
6. Is investment gold VAT free in the UK?
Many investment-grade gold bars and coins qualify for VAT exemption in the UK, provided they meet the legal requirements.
7. Does silver have VAT?
Newly supplied silver bullion in the UK is subject to VAT. Many pre-owned silver bullion products are sold under the VAT Margin Scheme, where VAT is accounted for on the dealer’s profit margin rather than the full selling price.
8. Why do gold and silver prices change?
Precious metal prices move constantly due to global supply and demand, currency movements, interest rates, inflation expectations and economic events.
9. What is spot price?
The spot price is the current market value of precious metals before manufacturing costs, dealer premiums and taxes are added.
10. Why do some coins cost much more than their silver value?
Limited editions, low mintages, popular designs, grading and collector demand can all increase a coin’s value beyond its metal content.
11. Are PAMP Suisse products genuine?
PAMP Suisse is one of the world’s most respected precious metal refiners, producing internationally recognised gold and silver bars with exceptional quality and security features.
12. What is CertiPAMP packaging?
CertiPAMP is tamper-evident packaging with an integrated assay certificate confirming the product’s weight, purity and authenticity.
13. How can I tell if a gold bar is genuine?
Professional testing methods include XRF analysis, electrical conductivity testing and dimensional checks. Buying from a trusted dealer also provides additional peace of mind.
14. How does 156Bullion authenticate precious metals?
Every product sold by 156Bullion is carefully verified using professional equipment, including a Niton Thermo Fisher XRF analyser and a Sigma Metalytics Precious Metal Verifier Pro before dispatch.
15. Can gold tarnish?
Pure gold does not tarnish. Lower purity gold alloys may show slight discolouration over time due to the other metals they contain.
16. Can silver tarnish?
Yes. Silver naturally reacts with sulphur compounds in the air, which can cause tarnishing over time. This is completely normal and does not affect the silver content.
17. How should I store gold and silver?
Store precious metals in a cool, dry location, ideally within their original packaging or protective capsules. Many investors also choose secure safes or safety deposit facilities.
18. What’s the difference between cast and minted bars?
Cast bars are produced by pouring molten metal into moulds, while minted bars are precision cut and struck to create a smoother, more detailed finish.
19. Are limited mintage products worth collecting?
Many collectors enjoy limited mintage releases due to their exclusivity. Lower mintages can sometimes increase long-term collector interest, although future values are never guaranteed.
20. What’s the difference between gold bars and gold coins?
Gold bars often offer lower premiums over the gold price, while gold coins may provide additional collector appeal depending on the series and edition.
21. What’s the difference between silver bars and silver coins?
Silver bars typically maximise silver for your money, while silver coins often feature legal tender status, artistic designs and collectible appeal.
22. Can I sell my gold and silver to 156Bullion in the future?
156Bullion purchase precious metals from customers, subject to product verification and current market conditions.
23. Why buy from 156Bullion?
We specialise in genuine precious metals, offering carefully authenticated products, competitive pricing, excellent customer service and secure UK delivery.
24. How quickly are orders dispatched?
Most in-stock orders are dispatched promptly. Delivery times may vary depending on the chosen shipping method and stock availability.
25. Is buying gold and silver online safe?
Buying online can be very safe when purchasing from an established and reputable dealer. Always check customer reviews, business credentials and authentication processes before placing an order.
Buy Gold & Silver with Confidence at 156Bullion
Whether you’re buying your first silver coin, investing in a gold bar or expanding a growing collection, our team is here to help. Every item we sell is professionally authenticated using our Niton Thermo Fisher XRF analyser and Sigma Metalytics Precious Metal Verifier Pro, giving you confidence that you’re purchasing genuine precious metals.
Browse our extensive range of gold bars, silver bars, gold coins, silver coins and collectible precious metals, or get in touch if you have a question that’s not covered above.