Should You Buy Coins Or Bars?
When considering how to add physical gold bullion to your portfolio, coins and bars both present excellent options for protecting wealth; each provides distinct advantages.
Gold bars tend to sell at lower premiums than coins due to lower production costs; however, their size limits their selling potential.
If you’re in search of the lowest per-gram price of gold, bullion bars may offer the best value. Made of pure gold and usually cast or minted to reduce production costs and store more easily than coins.
Gold coins offer an ideal investment due to their backing by sovereign mints and legal tender status, making them popular with collectors who may also gain long-term numismatic value over time.
Coins require more of an initial outlay and may be harder to sell in small increments due to production and design costs, making collectible gold coins like American Gold Eagle and British Sovereign difficult to sell at their current value. Furthermore, selling coins when diversifying or cashing out your portfolio or cash out may prove more challenging and they are harder to transport compared to bars.
Gold bars typically carry lower premiums than bullion coins due to being produced in bulk. Made by cutting gold from large sheets or casting it directly, these gold bars can easily be sold off in customized increments at more cost-effective rates than buying coins or rounds of equal weight.
Rare and collectable coins often carry a higher premium that may be difficult to recoup when selling them, plus their storage requirements require a safe or vault.
Diversifying your precious metals portfolio should ideally include both bars and coins; your decision will depend on your investment goals, budget and preferences. As well as protecting savings against inflation, bullion bars offer additional reselling advantages in an event of war or financial crisis.
Bullion coins are an increasingly popular investment option among precious metals investors. Not only can they serve as an excellent hedge against currency and stock market fluctuations, they may also provide diversification to your portfolio and can often be purchased for close to their spot price.
Most bullion coins are composed of copper (pennies), clad copper/nickel (nickels, dimes, quarters and half dollars dated 1965 and after), or silver. Some may contain other precious metals such as gold.
Bullion coins offer investors and collectors alike an engaging combination of coin sizes and precious metal content, shapes, and premiums that appeal to both audiences. Bullion coins typically carry lower premiums than their numismatic counterparts but these costs may still depend on type and metal content of coins; those new to bullion collecting can begin with smaller sizes, like 1 oz Precious Metals bars and rounds for an accessible introduction into this exciting hobby.
Before investing in bullion coins or bars, buyers must consider their investment goals, budget and storage needs when making this choice. Coins may be better for investors looking for smaller amounts or looking for lump sum investments; additionally, coins are easier to sell later for capital gains tax purposes.
Gold bars are an ideal investment solution for investors seeking to acquire large amounts of the precious metal, providing easy storage and lower premium per ounce than coins. However, large bars may prove harder to liquidate at times of emergency.
A gold bar that provides investors with the lowest premium is 1kg; however, smaller-sized bars such as 50g and 20g may provide investors with reasonable premiums as these require less production costs and storage costs.