Bullion investment is a smart move but beginners find it hard to choose between gold coins or gold bars. The decision will depend on your individual circumstances. The factors to consider like –
- Investment value & product premiums
- Where to store?
- How long do you plan to keep it?
- How do you want to acquire the investment value?
Product premiums
It is the extra costs besides the spot price of gold attributed to manufacturing costs, insurance, packaging, handling, and delivery. Reputable bullion dealers like Kalita Gold charge investors a small premium percentage. Premiums are unavoidable because bullion dealers also have to buy złote monety [gold coins] above spot price. You must try to keep premiums low and for this invest in gold bars rather than gold coins.
- Gold bar’s size is larger than gold coins, so the manufacturing cost is low.
- If you are planning to keep gold for long without any intention to sell then choose large gold bars.
Remember, the savings are small but can hinder your flexibility.
Flexibility
Gold bullions are purchased to preserve wealth and make high ROI. Large gold bars offer the best value while buying but it doesn’t mean you can attain the best value while selling later. Alternatively small gold bar units, especially gold coins offer high flexibility while reselling.
- Flexibility for releasing part of the investment to gain quick cash.
- Part selling is an efficient way to increase ROI.
For ultimate flexibility invest in gold coins despite their slight high premium.
Small or new investors
Small and new investors must consider gold coins and bars. Coins are the first choice because of their low investment value.
Large investors
The decision to invest a large amount in gold bars is less complicated for large investors because it allows for bringing in the best money value and maximum ROI. Besides, they even save money buying gold in volumes because unit price reduces when more is bought as the premium cost incurred by bullion dealers is low.
Changing premiums
In the past, gold bullion coins demanded extra premiums because of certain market factors. For example, in the 1960s the premiums for buying & selling gold sovereigns were increased by 40%. Premiums can fluctuate and it is essential to consider this when buying gold bullions. Gold coins can potentially offer greater ROI, while gold bars are worth the metal content’s intrinsic value.
Which is a smart investment – gold coins or gold bars?
Gold investment is a wise choice because it protects your wealth from economic uncertainty and inflation. Other assets like cash, real estate, and stocks lose value rapidly because of recessions, inflations, and war….gold tends to retain its value or even increase when everything is crashing.
Buying physical gold is a smart move because you can hold, protect and control it. Whether to buy gold coins or gold bars depends on your goals and situation. Investors with a huge amount of cash planning to store it for a long time can choose gold bars. Gold coins are better for those who intend to use them as money anytime. Gold coins are even a good choice for investors with less upfront cash but who desire to slowly collect gold holdings.
