With crypto and stock markets shakier than ever, is it time to find a safer place to store your wealth? The most dependable form of investment is one of the oldest: gold.
Before you explore the allure of gold, learn more about investing in gold. You have two options: bars and coins.
For those new to the world of gold products, we’ve compiled this short guide to explain their differences. Read on to learn whether coins or bars are your best options.
Authenticity
When you invest in gold, you need markers of authenticity. Both coins and bars score highly in this respect.
Bars feature hallmarks. They will show their origin and the purity of the gold. The physical characteristic of a gold bar is a rectangular shape, though they vary in weight.
Coins have mint marks to show their authenticity. They will also have a uniform shape and display unique and historic designs.
Both types of gold make it easy for investors to check the authenticity of what they buy. A gold expert will be able to study the markings on both.
Demand for Gold Bars vs. Gold Coins
Physical gold bullion isn’t the most liquid asset. Both coins and bars need checks and verification before you can sell them. However, there are slight differences in the liquidity level of the two.
Gold coin benefits include a higher market demand. They offer more liquidity. Some unique and rare coins may be popular and sell quickly in an open market. Their low weights and small size make them easy to transfer and ship after a sale.
Bars need more checks. They will involve a more significant transaction that’s more complex. It’s something to keep in mind with your assets. Coins may be the best option if you need to access funds fast.
Investment Costs
As coins come with unique designs, that feature carries a premium. The minting quality and uniqueness will impact your price when buying that coin.
That value could fluctuate and increase over time because of that uniqueness.
Bars come in more standardized forms and don’t have a design that makes them a collector’s item. So you may not pay a higher premium beyond the cost of the gold.
However, you will pay more based on the purity of the metal. The higher the purity, the more you will pay.
Security for all Types of Gold Products
Due to the physical nature of investing in gold, you’ll need to consider secure storage. Coins are more compact and, therefore, easier and cheaper to store. You can put them in a safe or a bank safety deposit box.
Gold bars are heavy and larger and may need to be stored in a specialist secure unit because of their high value.
When considering storage costs and practicalities, you should remember other expenses like insurance and transportation.
Gold Products: Coins or Bars?
Gold products are excellent and safe options to invest your money. Whether you go for coins or bars will depend on several factors, including how much you want to spend, where you store them, and your security setup.
To make your first investment, head to our gold prices section at CMI to see what we currently offer.
