When assessing the gold market, the age-old question is whether to buy gold bars or coins. If you’re a newcomer to the market, then you’re probably wondering what the difference is, after all – gold is gold, right? Well, not quite. Both Gold bars and coins provide advantages.
So, to give you a flavour of the different market conditions you need to consider before making a purchase, we’ve outlined the pros and cons of buying gold bars or coins.
Gold bars vs gold coins: What’s the difference?
The obvious starting point when listing the differences here is to look at the shape of both. One is a solid bar of gold, the other is a lighter daintier shape. But, any amateur can highlight this, the real interesting part is in the market value and the advantages investors can gain from purchasing either product.
For higher gold content, a gold bullion bar provides greater weight simply because the size is bigger. Experienced investors often opt for the gold bar as it has a significant inherent value. Gold coins, like the Britannia coin, are renowned for intricate designs and luxury fine details that are considered worthwhile for avid gold coin collectors. Equally, the fact that these coins are legal tender means they carry premium value, as well as the storied history and traditions associated with these designs.
Consider the needs of your portfolio are aligned with the suitability of both gold bars or coins to determine the right purchase for you. If you need a little more guidance, then read our article on how to buy gold for further details.
Premiums for Gold Bars and Coins
Understanding the premium costs for different weighted bars and coins is key. Premiums associated with gold bullion and coins factor in the costs to produce, package, deliver and insure products. This explains why smaller gold bars often have higher premiums and higher-weighted bars carry smaller premiums. Gold bullion bars carry a smaller premium in comparison to coins as they are larger.
If you want to keep the premiums you pay to a minimum, then we recommend investing in gold bars. Gold coins are great for collectors, but if investing and keeping costs down is the priority for you, then buying gold bars is the way to go. If you plan on holding onto your asset for a considerable period then larger gold bars are the best investment to make.
Gold Bars or Gold Coins?
Your investment goals are personal to you – we understand that each individual has different needs and goals when it comes to the prestige of their gold portfolio. If flexibility and liquidity are a priority, then gold coins offer that in abundance. They’re simple to store and easier to trade. If investment opportunities are your priority, then a heavier-weight gold bar like our 500g bar provides reliability if you’re happy to sit and wait and not react to market conditions. Think about the practicality of storing your gold bar. A larger bar will require more storage than a gold coin.
The value of gold bars and coins
Staying up to date with the latest market trends and price changes is key. The economical volatility plays a huge part in impacting the price of gold, therefore you need to stay up to speed with any developments to ensure your investment is worthwhile. Managing your financial commitments also requires you to be aware of the tax ramifications of purchasing and selling gold, including capital gains tax.
A vast range of availability and types are provided by both gold bars and coins, so you can select the right gold product to elevate your portfolio.
Buy gold bars and coins with Bullion Giant
At Bullion Giant, you can buy gold bars and buy gold coins online with a wide array of magnificent gold bullion assets to elevate your collection. Choose from LBMA-approved brands such as Metalor, Umicore, PAMP Suisse, Heraeus and Valcambi.
Thanks to our flexible payment options, you can pay in a way that suits you. You’ll also get free, insured delivery. Once you place your order, you’ll receive your gold product in 2-3 days. We only partner with the nation’s leading couriers to ensure all of our gold bars. Our delivery options provide our valued customers with peace of mind and security. Choose from smaller weights such as our 1g, 2g, 5g or 10 gram gold bars, or check out our larger weights like the 500g, 1kg gold bars and 12.5kg gold bar. Contact our friendly team today with any queries and we’ll be on hand to assist you.
