Bullion is precious metal in a standard, high-purity form, such as bars or coins, bought and sold for its metal content rather than its design or rarity. Its price follows the gold or silver rate plus a premium.
What counts as bullion
Bullion is bought for weight and purity. Three features set it apart from jewellery and collector coins: high fineness (in India usually 999 or 995 for gold and 999 for silver), a standard weight in grams, kilograms or troy ounces, and a price that tracks the spot price closely. The same rule applies everywhere: a Canadian Maple Leaf, a British Britannia or a South African Krugerrand is bullion for the same reasons as a plain 10 g bar from an Indian refiner.
Bullion in the Indian market
India has no single national bullion coin that every dealer stocks. Instead, refiners, banks and jewellers sell their own coins and bars, mostly in gram sizes:
- Gold coins: 24K coins from 0.5 g or 1 g up to 50 g, plain or with designs such as Lakshmi or Ganesh, plus some 22K coins.
- Gold bars: 24K bars of 1 g to 100 g, in 999 or 999.9 purity, from refiners and jewellery brands.
- Silver: 999 coins from 10 g and bars up to 1 kg and more.
Because each brand sells its own design, the same product rarely appears at many dealers. Compare by weight, purity and form instead of brand name. That is how our ranking of the cheapest gold coins in India groups offers, and the dealers page lists who we compare.
A design does not stop a coin being bullion if it is 24K and sold close to its metal value. It does matter if the design adds to the making charges, so check the price per gram.
Bars or coins?
| Bars | Coins | |
|---|---|---|
| Premium per gram | Usually lower, especially at 100 g and above | Usually higher, especially at 1 g |
| Recognition when selling | Good for known refiners | Good for known brands |
| Divisibility | Low for large bars | High, from 1 g |
| Common gold sizes in India | 5 g, 10 g, 20 g, 50 g, 100 g | 1 g, 2 g, 5 g, 8 g, 10 g |
Worked example: a 1 kg bar holds 32.15 troy ounces. Buying the same metal as 10 g coins takes 100 pieces, each with its own making cost, which is why larger bars usually carry a smaller premium over spot. GST is 3% on bars and coins alike, so tax does not change the choice. For silver, compare the 1 kg silver bar with the cheapest silver coins.
One Indian refiner, MMTC-PAMP India, is on the LBMA gold Good Delivery List; see LBMA Good Delivery. Limited editions and proof finishes are collector items, not bullion; see numismatic coins.
Related terms
Premium Over Spot Fineness Numismatic Coins Spot Price
FAQ
Is a gold coin with a Lakshmi design bullion?
It can be: if it is 24K and sold close to its metal value, it is bullion, but check the price per gram because a design can raise the making charges.
Is GST charged on gold bullion in India?
Yes, gold and silver bars and coins carry 3% GST, the same rate as jewellery.
Are bars cheaper than coins?
Per gram, larger bars usually carry a lower premium than coins, but small coins are easier to sell in parts.