Investing in Gold Bullion – Bars Vs Coins

5Throughout the history, gold has been sought after due to its beauty, durability and rarity. Not only that, this precious metal also holds the status of an universal currency that is valued around the world. It’s not surprising that nowadays many investors and even regular people buy gold in order to diversify their portfolio, hedge against inflation or simply store their wealth in the best safe haven available.

When it comes to buying gold, there are several options available. You can buy the traditional gold bars; buy gold in coins of varying collectible values; or purchase gold futures and gold mining company shares. In this article we’ll overview two most simple options of buying real, tangible gold: namely gold bars and coins.

Gold bars can be made in two ways. Cast bars are produced by pouring the molten metal into a mold. This method is usually associated with larger ingots used by banks and governments. Minted bars, on the other hand, are stamped out from a gold sheet or strip. Gold bullion bars can be any size, from tiny 1 gram wafers to 12 kg ingots.

Gold bars are usually bought by people who simply want to invest in gold and do not care about the collectible value of coins. One of the advantages bars have over coins is a lower premium over the market price, since the fabrication process is simpler and they do not require an impeccable finish like coins do. When selling a gold bar, it’s the raw value of the metal that matters.

Coins are another common way of owning gold. A lot of people prefer buying bullion coins like the American Gold Eagle or British Sovereign instead of bars. There are several pros to owning coins. First of all, they carry a smaller risk of forgery (although fake gold coins still aren’t uncommon). Depending on the part of the world you live in, gold coins will most likely be easier to sell as well. As such, they’re probably a better choice for people looking to capitalize on market movement. Finally, most coins have a collectible value of some sort that can only increase over time.

If you’re considering buying gold and want to choose between bars and coins, you need to ask yourself what exactly you’re looking for – a profitable investment, a stable asset in these uncertain times, or a valuable collectible – and go from there.

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