Buying Gold bars Vs. Buying Gold Coins.

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In terms of heavy investment, gold coins are not part of the game. Most of the time, major investors don’t like to make investments in terms of gold coins, when they have the liberty of large-scale dealings because of gold bars. However, gold coins have a numismatic or collector item value – a couple of them can easily take the sting out, as compared to bars.

Plus, there’s always a chance for someone to nod in your favor, if he or she is a gold coin junky. There’s a strong chance that a handful of people in your community, among your relatives and friends, feel a likeness towards gold coins. Either they collect them as a reward, or just tend to get by a little bit of investment scenario, thinking that gold coins don’t take up a lot of time to liquidate.

  • Gold coins the ones with currency attached to them tend to be more collectible and reliable.
  • Silver tends to be actually more liquid than coins because of people selling coins for collectible value.
  • Gold Coins might have a bigger buy premium but also often have a bigger sell price too.
  • If inflation suddenly sky rocket then coins are easier to test with low price tools.
  • Sure, you might be able to find weight and size with tolerances for minted bars but it’s not as easy as coins.

Compared to gold bars, when we talk about gold coins in the context of collectible items, we have a fair advantage. You see, collectible gold coins are passed over to the younger generation in a family system. So, if a sack of coins has been passed on since the 1800’s in your family, you can turn them over for a heavy amount of cash. But also at the same time, there’s an imminent sense of danger, an economic collapse or a decrease in the demand of those coins.

It means that the coins’ value will either degrade, or they’ll no longer have any recognition. You’ll not be able to sell those coins, which is why gold bars play a favorable role. It’s true that gold coins can be sold immediately, but they have a limited market. Whereas gold bars are recognized globally, and if you’re dealing with the right type, you don’t have to wait long for heavy profits to roll in.

Also, if the coins are of rare value and you’re willing to make an investment, go for the gold bars instead. A side-by-side analysis will always reveal that gold coins are more expensive because investors will most likely end up paying for the rarity of the metal. But the gold bars are just plain bars that have a premium to be paid and a couple of months until the investment turns toothy-fruity.

Warren Buffet once said, “Put all your eggs in one basket and then watch it carefully.”  Taking the same statement in the context of gold investment, there’s a very less degree of risk involved. Gold bars and gold coins will always have a fixed value; it’s a metal that’s globally recognized. Unlike stocks and ETFs, gold isn’t subject to rapid economic changes, at least not that much.

Quick Look At Gold Coin and Gold Bar Investments:

Production costs per oz are lower for larger bars, but you will indeed get more for smaller sizes when you sell them; as more people can afford them, and they are easier to re-sell. 100+oz bars are heavy, AND, harder to sell – most of the time, you will have to accept less than the spot price.  Best choices are monetized bullion coins minted by Sovereign nations – Eagles, Maples, Krugerrands, Sovereigns, Mexican Pesos, etc.

Forget generic bars and rounds, you will be lucky to get spot. This was my experience. I live in a very large population area so not some small market. When it came time to sell, my generic stuff went below spot. The best price I got was on Eagles and Maples, but just a buck over spot about 90% of the time.

  • Gold Coins :
    • Small Market
    • Absence of sellers can make it hard to sell them
    • Sometimes the premium can reach to 40%, or even 100%.
    • If you’ve bought the wrong kind of gold coins that have no value, you’re in for it.
  • Gold Bars:
    • Recognized on a large scale
    • Will always have an open market
    • Making profits is easy because you only have to oversee a 5 – 15% increase in rates
    • Waiting really sucks so be wary of that.

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