Gold Coins vs. Gold Bars: What Should You Invest In?
Gold plays a vital role in strengthening your investment portfolio. According to Frank Holmes, CEO of the United States Global Investors, gold generated significant profits compared to the U.S dollar in 2016. If you’re seeking to invest in precious metals like gold, you will have to be strategic about it and decide what type of gold you’re going buy – gold coins or gold bars? This blog evaluates both of these to help you decide.
What are Gold Coins?
Gold coins are struck with a die in a coin’s shape. They are usually stamped with a face value according to the legal tender. Their dimensions vary, ranging from grams to kilograms – depending on the requirement.
What are Gold Bars?
It is a precious metal in the shape of a brick and is struck by a mint – government or private. They don’t have the face value or legal tender, and they cost less than gold coins.
Advantages of Buying Gold Bars
If you’re seeking to diversify your portfolio, you should buy gold bars. Given their size, you can quickly establish your collection for precious metals. In a short span, you can own large amounts of gold.
Gold bars are priced at the least amount of per ounce when it comes to gold. You can buy more gold in the form of bars compared to coins for the same amount of money.
For instance, a 12 ounces gold bar would be priced at around $12,500, whereas 12 ounces of gold coins would cost you more than $13,000. You are saving approximately $500, which can later be used to purchase more gold.
You Can Store Easily
Gold bar’s size and durability allow for convenient storage. Gold is not a reactive metal. Therefore, you can easily stack it on top of one another or side by side without having to worry about packing them separately. They also take less space as compared to coins, given the weight is the same.
You Can Buy and Sell Easily
Gold bars area made of pure gold. They don’t have any face value or proofing. Therefore, they’re easy to make sense of. The bars are not minted, so they don’t have any historical or cultural significance. That’s why you can easily buy and sell gold bars without the fear of being cheated.
Advantages of Buying Gold Coins
You have endless options when it comes to purchasing gold coins. There is an extensive range of sizes, designs, finish, and rarity. You can choose from bullion gold coins to collectibles based on what you prefer and what your budget allows.
Gold coin’s extensive range allows you to buy and sell gold coins and take advantage of the fluctuating gold prices. You can easily buy a 10 gram gold coin, but you won’t be able to get a 10 gram gold bar.
Gold coins contain a numismatic potential. It means that along with the high value of gold, gold coins have an appreciation, which is based on their demand and rarity. They are like art; their worth increases concerning its aesthetic and historic appeal.
Coins are minted by government bodies that warrant the purity, weight, etc. That’s why their design and presence have integrity.
They Make Good Gifts
If gold coins are stamped with dates or names, they can be given unique gifts to commemorate important years. It goes above and beyond its monetary value.
If you’re looking to purchase gold for investment, visit Orion Metal Exchange. We have a range of coins from Canadian Maple Leaf, American Eagle, Canadian Mint Polar Bear, and Great Britain Queens Beast. Our services include precious metal investing for IRA, secure vault, and home storage facilities.