Business Definition for: bullion
bullion
gold or other precious metals in bar or coin form. The major gold trading centers are London and Zurich, with gold futures trading based in New York. Monetary reserves of central banks are kept mostly in gold bullion.
See also
gold fixing
,
earmarked reserves
Related Terms:
daily determination of the price of gold by selected gold specialists and bank officials in London, Paris, and Zürich. The price is fixed at 10:30 A.M. and 3:30 P.M. London time every business day, according to the prevailing market forces of supply and demand.
funds set aside for a specific purpose. For example, a bank's loan loss reserves for possible bad debt. The Federal Reserve Bank of New York holds gold bullion in trust for foreign central banks and various international organizations. Earmarked gold is used to back up monetary agreements, such as currency swaps to stabilize exchange rates.
Referring Terms:
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