Should We Invest in Gold Coins Or Gold Bars?

Metal Ounce Gram
Gold £1300.024 £41.797
Silver £17.694 £0.569
Platinum £770.555 £24.774
Palladium £1535.289 £49.361
Updated 06:42 22/10/21
Time Zone: UTC
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Should We Invest in Gold Coins Or Gold Bars?

Gold is a precious metal in terms of sale and investment. People purchase gold for varying purposes ranging from investment to jewellery. If we talk about gold coins and bars, those who buy gold bars or gold coins do it from a proper savings perspective.

If you are also looking to purchase pure gold as a savings purpose, you have two options to pick from, including gold coins and gold bars. Now, the question is – which one is better when it comes to investment?

Are you confused between gold coins or bars? No worries! This post will talk about gold coins and bars to conclude which one you should pick. So let’s get started.

Gold Coins VS Gold Bars

Except for the physical differences, both gold coins and bars come with some advantages and disadvantages. Determining which one is best depends on an individual’s personal investment motives and goals.

Pros and Cons of Gold Coin

Advantages:

Quick barter – gold coin are easier to trade during crisis – making them highly liquid.
Available in multiple denominations from 0.5 grams to 100 grams.
Universal recognition makes coins easier to sell.
They were often engraved with a date – making them a perfect present for special occasions.
Greater flexibility and liquidity.

Disadvantages:

The gold coin’ premium is a little higher than the metal’s spot rate because of their collectability.
Lag behind gold bars when it comes to the price.
Not all gold coin are 24 carat – some are 22 carat and 20 carat as well.
Don’t come with certificates.

Pros and Cons of Gold Bars

Advantages:

They are a better way of investment for large scale investors.
Easy to store and transfer around.
They are sealed and come in packaging.
They are usually issued with proper certificates.
Typically produced in 24 carat.
When purchasing larger sizes, the premium on gold bars is significantly lower than gold coin due to low production costs.

Disadvantages:

Do not possess the collectability element like gold coin.
The larger gold bars are challenging to barter than smaller ones or gold coins during a financial crisis.
Might include extra handling charges as they are difficult to melt and reshape.
Higher market risks.

Which One is Better?

Investing in physical gold (gold coin or gold bars) is the best way to protect your wealth during economic instability and downturn. On comparing the features of these two options, we found that there’s a considerable base of investors who prefer investing in gold bars rather than opting for gold coins. Crafted with precious metal produced by private mints, gold bars are slender and rectangular slabs. The stackable design, compact size, and easy to store nature of these bars make them an ideal choice to buy.

Besides, no matter which option you are selecting to invest in, make sure to buy from a reputed vendor. If you want pure physical gold, look at our gold coins and gold bars collection here. For more details, consider talking to our team.