Although coins are easy to store and exchange, gold bars can be trading options as long-term investments. Once again, gold coins are flexible and easy to buy and sell than gold bars. As such, both gold coins and gold bars have their advantages and it all comes down to your personal goals and preferences as an investor. In general, premiums for gold bars tend to be lower than gold coins of the same weight and fineness.
Why? It all comes down to production costs. Gold coins can be more expensive to produce than gold bars due to their intricate design, emphasis on condition and appearance, and therefore higher labor and machining costs. In addition, the price of a gold bar is mainly based on its weight. With some gold coins, such as certified coins, the rarity and grade of the coin are also taken into account in the final price, so the gold content is not the only factor influencing how much the coin will cost you in the end.
Gold is considered a reliable investment in all cases. Gold bars are especially important, since their value can be accurately determined by the spot price in real time. Gold bars tend to be cheaper to manufacture compared to gold coins. Therefore, they have a smaller premium compared to gold bullion coins.
The larger the gold bar, the lower your premium. One kilo gold bar will include a lower manufacturing cost than 10 100 gram gold bars. Bullion coins, such as Gold American Eagles, are the best type of precious metals for most investors. This is because sovereign coins are easily recognizable, easy to trade, and generally sell at higher premiums than bullion.
You can buy smaller bars, such as a 1-ounce bar, but they tend to be harder to sell and transaction costs are higher. If you have been waiting with your gold bars for the right price, now is a good time to sell, as the price of gold has reached the highest levels for several years. Our top recommendation for selling gold bars or coins is Abe Mor, which offers the best customer experience and the best value for your bullion. Selling with a reputable online dealer like Abe Mor is the best way to get closer to market value and convert your gold bars into cash without undue hassle.
Gold and silver coins generally hold their value well for resale. Because sovereign (government) currencies are government-backed and guarantee purity and content, they usually reach the highest resale price.