It’s the age-old question: Should I 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.
While both assets give you direct exposure to the price of the precious metal, each comes with its own unique features, costs and benefits. Depending on your investment goals, weighing up these factors is crucial to selecting the right form of gold that aligns with your risk tolerance, liquidity needs, and tax considerations.
In this guide, we’ll walk through everything you need to know about gold bars vs gold coins, from unit price and storage all the way to tax perks, so you can make a confident, well‑researched purchase.
Why invest in physical gold?
Gold has mesmerised humankind for millennia, but its appeal goes far beyond its gleaming surface. Whether in the form of bullion bars, coins, or jewellery, physical gold keeps no counterparty risk: it isn’t someone else’s liability the way a bank deposit or a share certificate is.
During periods of inflation or market turmoil, gold has historically maintained its value, often outperforming other mainstream investments. Other benefits of buying gold include:
- Wealth preservation: When paper currencies lose purchasing power due to inflation, monetary policy changes, or geopolitical turmoil, gold often holds steady, or even rises in value.
- Portfolio diversification: Even just a small allocation to gold in a broader investment portfolio helps reduce overall risk. That’s because gold typically has a low or negative correlation with stocks, bonds, and real estate.
- Privacy and control: Owning gold puts wealth in your own hands, outside digital systems and third-party institutions. You don’t need a Wi-Fi connection or a bank account to access it, just a secure place to store it like a vault.
- Long-term legacy: Gold is universally recognised and can be easily transferred between one generation and the next, making it a reliable investment over a long period of time.
Five factors to consider before buying gold bars or gold coins
Before deciding between gold bars vs coins, it pays to consider the following factors, regardless of whether you’re a new or seasoned investor. Thinking through the practicalities now can help you avoid costly mistakes later and ensure you choose the right type of gold to fit your investment strategy.
1. Budget
Are you stacking gradually with smaller, regular purchases, or moving a lump sum into precious metals all at once? Your budget will shape what you buy—fractional coins or smaller bars tend to suit regular savers, while larger bars offer better value for bigger investments.
2. Available storage
Where and how you plan to store your gold is a key consideration. Do you have a secure safe at home, or will you need to use a professional vaulting service? Space, security, insurance and even discretion all come into play. Coins are often easier to store in multiple locations, while larger bars are more compact but concentrate value in a single item.
3. Liquidity needs
How quickly might you need to turn your gold back into cash? If instant access is important, then smaller units like 1 oz coins tend to be more liquid and easier to sell. On the other hand, larger 1kg gold bars, while more cost-effective, can take longer to offload and may not be ideal for fast sales.
4. Tax treatment
In the UK, the tax rules vary depending on what type of gold you buy. While all investment-grade gold is VAT-free, only certain coins, such as Gold Britannias and Sovereigns, are also exempt from Capital Gains Tax (CGT). Bars and non-UK coins may be liable for CGT when sold at a profit.
5. Personal taste
Not every investor buys gold purely for financial reasons. Some are drawn to the historical significance and craftsmanship of coins, enjoying the collectable aspect as much as the investment. Others prefer the simplicity and purity of gold bars, where the focus is solely on the metal’s weight and value.
If you need a little more guidance, then read our article on how to buy gold for further details.
Gold bars vs gold coins: What’s the difference?
Now, let’s break down the key differences between gold bars and gold coins. From shape and weight to liquidity and value, understanding these distinctions will help you choose the gold that fits your strategy best.
Size & form
The obvious starting point when listing the differences here is to look at the shape of both. Gold bars come in a vast range of weights, from 1 g to 500g bricks. Their shapes are rectangular and simple, prioritising metal over looks. Gold coins, meanwhile, are circular and available in standard denominations, including the 1 oz Britannia, plus fractional sizes such as 1/2 oz or 1/10 oz.
Summary: Gold bars suit investors chasing the lowest cost‑per‑ounce. Coins suit collectors or those wanting easily divisible units.
Premiums
“Premium” is the markup above the spot gold price. It factors in the costs to produce, package, deliver and insure products. This explains why smaller gold bars (under 20 grams) often have higher premiums, as production costs are spread over less metal. Higher-weighted bars (100 g and up) carry smaller premiums because those fixed costs are distributed across more gold.
In comparison, popular bullion coins like Britannias or Krugerrands tend to carry slightly higher premiums than larger bars, not just due to production costs, but also because of their legal tender status, intricate designs, historical appeal and broader market demand.
Summary: If you want to keep the premiums you pay to a minimum, then bullion bars usually win the gold bars vs coins premium battle.
Liquidity
Liquidity measures how quickly and easily you can turn gold back into cash. Coins often shine here, as they offer greater flexibility and divisibility. It’s much easier to sell a single 1 oz coin than to offload part of a 1 kg bar. After all, you can’t just slice a bar in half without losing value. This makes coins a more practical choice for short-term investors who may want to sell in smaller increments over time, rather than all at once.
Summary: If you’re looking to preserve your wealth, stick to investing in gold bars. But if flexibility and an easier resale matter more to you, gold coins are a better fit.
Storage & security
Bars concentrate value into a small form. A 250g gold bar (worth roughly £20,000) occupies less space than ten tubes of coins, making vaulting efficient. Coins fit neatly into tubes and can be stashed in several locations if you prefer not to keep all eggs in one basket.
Overall, both bars and coins require secure storage, whether that’s a home safe, a bank safe-deposit box, or a professional vaulting service. It’s also wise to have insurance coverage in place. Though insuring bars is often more cost-effective per £ value, thanks to their space-efficient form.
Summary: Gold bars are ideal for secure vault storage, while coins offer more flexibility and can be stored discreetly in multiple locations.
Value
“Value” means more than price. It also covers durability, purity and brand reputation. Gold bars from LBMA‑approved brands like Metalor, PAMP or Umicore carry serial numbers and assay cards, guaranteeing 24‑karat purity (99.99%). Modern bullion coins also hit 24 k purity, often backed by national mints and legal tender status, adding an extra layer of trust and recognition worldwide.
Summary: For long-term wealth preservation, gold bars, particularly in larger sizes, are the preferred option. Meanwhile, coins have the potential to increase in value due to collectibility, demand, and tax advantages.
Collectibility
Some investors relish heritage. A 1990 Sovereign with the classic St. George slaying the dragon design, or a proof finish Britannia, can appreciate far beyond its metal value. Coins have histories, monarch portraits and limited mintages; gold bars rarely do. This makes them attractive to collectors and those who value the artistry of coins, while bars tend to appeal more to investors focused purely on the metal’s intrinsic value.
Summary: Coins can gain value from their collectibility and design, while bars mainly offer pure metal value for straightforward investing.
Tax implications
Finally, tax is pivotal in the gold bars vs gold coins debate. Investment-grade gold bars and certain coins over 90% purity are zero-rated for VAT, meaning no VAT applies. However, UK legal-tender coins like the Gold Britannia and Gold Sovereign are exempt from Capital Gains Tax (CGT) for UK residents as official currency. All non-UK coins and gold bars are subject to CGT on profits exceeding the annual allowance (£6,000 for 2025/26).
Summary: If you’re planning a large gain down the line, Britannias or Sovereigns often beat gold bars hands down on after‑tax returns.
Should you invest in 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, such as our 500g bar, provides reliability if you’re happy to sit and wait, rather than reacting to market conditions. Think about the practicality of storing your gold bar. A larger bar will require more storage than a gold coin.
Where can I buy gold coins or gold bars?
Digital convenience means you can buy gold online in minutes. Yet, not every website offering bullion is equal. Look for dealers who:
- Hold LBMA membership or partner with LBMA‑approved refineries.
- Publish live buy‑back prices so you know your exit value.
- Offer insured delivery or secure storage vaulted within the UK.
- Provide transparent pricing—no hidden “handling” or “card” fees at checkout.
- Carry strong customer reviews on Trustpilot and Google.
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.
