Buying Gold Bullion Vs. Buying Coins – Which One’s More Secure?

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First time gold buyers are always a little frazzled when it’s about choosing what kind of stuff to go for. Either it’s the gold bullion they want to invest in, or is the gold coins that have always been a medium of currency since the medieval ages.

Well one thing is for sure that gold is no longer a currency, just like it used to be in ancient courts – it’s just that the modern version of gold is more like an investment or money-making scenario. In this context, the question that often pops up in a potential investor’s head is:

I’m very much interested in buying gold. I don’t know whether it’s going to cost me more if I buy gold coins or the gold bullion. Which one is better and more feasible?

Both metal forms have their own advantages and disadvantages over one another, which makes it suitable to investors. Gold bullion always has its shiny stamps and universal sense of approval, whereas gold coins have the mint value, alongside par value and stuff.

Try understanding both entities as tradable forms or money doubling ideas. What would you do if it’s about buying gold bullion vs. buying gold coins thing? Knowing that gold bullion has more finesse and trademark stamp, its value and refinement is slightly notched up, would you prefer coins over it?

Let’s see if gold bullion works for you. If it doesn’t, then you can take a look at gold coins related stuff at the end of this post:

  • With Bullion investments, there’s always a strong chance that you can get paid back heavily.
  • Gold bullion bars are accepted globally, which makes it easier to liquidate them anytime. However, the cost of liquidation has to be considered as well.
  • The premium cost for bullion investment is lower.
  • Bullion bars also take some time to get their rates up. The overall period between buying and selling could almost take one year on the minimum.

Moving on towards the topic of gold coins, their small size also makes them a sign of preference all over the world. Some people buy gold coins because they can sell them anytime, they want to. Compared to gold bars, the premium on gold coins is kind of lower. Ever since the 1960’s, gold experts have reportedly witnessed a maximum premium of 40% over gold bar trading, which is definitely a high price to pay.

Gold coins can also be stored a collector’s items. It means that once the coin has become old, it kind of reaches beyond its maximum value, giving way to a completely new stream of profits. In our honest opinion, we recommend gold coins instead of gold bars. It’s just that the coins have a lower premium and they’re easy to deal with. Bars just take a lot of time despite of their high ROI factor. If a person needs emergency cash, he’d have to make deals in gold coins, rather than gold bars.

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:

  • 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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