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What to Buy Gold Coins or Gold Bars

The people save their hard earned money for the purpose of meeting future needs. But rather than keeping the money idle at home, they opt to keep it invested among the various options that are available. From among these, the one which is relatively safe, liquid and has the best appreciation value is gold. People prefer to buy gold and keep it as an investment for meeting their future needs. Gold can be purchased in a variety of ways. Some of the popular methods are as follows:

  • Gold Jewelry - The gold jewelry is considered to be the most common ways to purchase gold. Buying jewelry from an authorized seller is the best choice. But it is only useful if the jewelry is to be used or gifted. Jewelry has additional charges apart from the gold cost, such as craftsmanship charges also known as making charges. So this is a disadvantage over other options as one only gets the value of gold when the jewelry is sold.
  • Gold coins - These are popular investment options as gold coins are very much used either for gifting or for storage. They can even be used in future to create gold jewelry. They come in multiple types depending on the weight.
  • Gold bars - These are popular investment options as gold bars are very much useful for storage. They can even be used in future to create jewelry. They come in multiple types depending on the weight.
  • Gold bricks - Bricks are relatively larger in size than the gold coins and gold bars. They are even more expensive as compared to the other gold options as the smallest size is also quite heavy. Their main purpose is investment and usage for making jewelry in the future.
  • Gold bonds- This is the most different among all the other types of gold. Here, there is no physical purchase of gold involved. There is only a gold certificate that is issued to the buyer by the issuing authority, in most cases it is banks. There are no making charges, only the market rate of gold affects the value of the bond. Some banks even provide interest on a yearly basis for such bonds.

Let’s elaborate on the gold coin and gold bar purchase.

About Gold purchase

At the times of economic uncertainty, the smart investors opt for the precious metals in order to diversify the portfolios and to protect the hard-earned money against the economic downturn. The paper currency constantly fluctuates in its value, going up and down based on the unpredictable political as well as the social circumstances. In order to avoid the risks that are associated with the unstable paper-based currency, the people who are looking to make a safe investment decision are turning towards gold, silver, platinum, and the other precious metals. In case one decides to convert some of the assets into the precious metals, it is believed that one has opted to take the first step towards the right path. But still, there are important decisions that are to be made before one takes that big leap. One of the primary questions that the investors always ask is that which bullion must they opt to buy coins or bars? Whether one is a large investor or a private citizen, who is interested in owning a moderate amount of physical metals, below compiled is some of the valuable information on the pros and the cons of adding bullion coins as well as the gold bars to one's prized possession.

Gold coins

Important aspects to Know About Gold Coins

The query about the difference between the gold coins and the gold bars is a very important one. It is an important question, specifically if one is a novice investor in the bullion market. So let's begin by discussing the meaning of a gold coin. The Pros and Cons of buying gold Coins

  • Apart from the physical differences, the coins and the bars each possess unique advantages as well as disadvantages. Selecting which type is best for an individual comes down to the personal motives and the goals for investing, how much one is looking to acquire, as well as the potential resale value which one is looking for.
  • One of the important disadvantages of owning gold coins is that the premium of the coin is generally a little higher as compared to the metal's spot price. This is because of their collectability.

As against this, there are a good number of advantages for investing in the precious metal coins. These are as follows:

  • More collectible as compared to the bullion bars
  • Quick Barter: The gold coins are considered to be easier to trade in the times of crisis, making it highly liquid.

Gold bars

Important aspects to Know About Gold Bars

The next in the line is the gold bars. A question may arise that are gold bars considered to be a good investment option, or is it a better option of sticking to gold coins? Well, let's dig deeper and find out. Buying physical gold is a great way to protect the wealth at the times of economic downturn and instability. There are so many investors who prefer to hedge their bets with the gold bars as well as "ingots" rather than opting for coins or rounds.

The Bars are slender, rectangular slabs made up of precious metal produced by the private mints. The compact size, stackable design and easy to store nature of the bars make them a great option to purchase the bullion in any amount which works for the individual.

Pros and Cons of Investing in Bars

  • The Gold bars are generally considered mostly favored by the serious, large-scale investors who are interested in owning as much of the precious metal as they can.
  • The gold bars do not possess the collectability factor which the gold coins do. Thus, the investors who are interested in the aspect of owning the bullion are better off in sticking to gold coins.
  • Even the biggest gold bars are considered to be more difficult to barter as compared to the smaller bars or the coins in the event of a financial crisis coming up. ###The Gold Bars provide the investors with a vast range of benefits. Some of the popular ones are as follows-
  • The gold bars are easy to store as well as transfer. One can easily stack up the bars from the various mints
  • Let's the new investors to quickly create their financial portfolio
  • The New gold bars are sealed and they are attractively packaged
  • The Gold Bars are typically issued along with certificates that are authenticating their value

Conclusion

Thus, one of the most important aspects to remember while making a choice between gold coins and gold bars is that any kind of precious metal bullion is considered to be a better investment than the paper currency.

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