What Is A Better Buy Gold Coins Or Bars ?

If you are comparing bars to bullion coins you are usually trading a lower premium per oz (on larger bars) with the added convenience of coins. With smaller bars I'm not sure there is a difference. Of course with numismatic coins you pay more of a premium but you also have an added upside based on rarity and desire ability.

Thank you for replies

Most bullion investors will diversify between both coins and bars and in numerous sizes/denominations. Bars (be it silver or gold) always have a smaller premium than coins. For example silver Maple Leafs are generally between .50 to $1 more expensive per/oz than the cheapest bars. Many of my customers will prefer coins because they are more recognizable and the new gen have certain security features. Also, although you have some silver and gold bar products now available in .9999, it wasn't the case in the recent past and was another reason why some would buy gold and silver Maple Leafs. Some older and low mintage year silver Maple Leafs have also gained some numismatic traction. It's not uncommon to see some years sell for over $50 in the current market (even without privy). Same can be said for certain bars but the generally would have to be much older (eg; low numbers Engelhard bars, etc...). Bottom line is that even on the return trip, bullion coins will generally fetch a bit more than silver bars (although most dealers will try to get both at spot). Last but not least, unless you can buy gold in full ounces, stay away from it all together. The premiums over spot on fractional gold are very high and you will never recover them on the return trip.

I've also read with the larger bars there's the risk of counterfeits as well. I've read where some people test the bars by drilling into them to prove they aren't plated. This would be a hassle to me. Also coins have nice designs compared to most large plain bars. My advice, read,read,read, and ask questions. Much like your doing now. Learn all you can. Also read Yup7676 thread in precious metals, he's very smart. He's got the benefit of having his finger on the pulse of gold & silver. He's a metals day trader as a profession.

There is almost no reason to ever buy a gold bullion bar that is larger than 1 ounce in size. The extra savings are negligible, they are much less liquid when it comes time to sell, and the risk of counterfeits is higher.

For gold, 1 oz gold maples are my #1 choice. Government minted, 24k pure gold (vs alloyed like most others), and a fairly low premium.

There are many pre-1933 gold coins that sell for very close to spot. Sovereigns, napoleons, french roosters (one of my favourite), swiss and on and on. The sovereign is just under a quarter ounce and, for example, a french napoleon is around .18 of an ounce.

For me the investment analysis is simple.

You know what you pay, what you don't know is what you will get when you sell.

A low premium on the purchase is nice, but if you get a lower offer on the sale end the math may not work out.


Here is a dealer buy page I use for estimating sell prices. Note how they buy the gold coins and bars at different percentages of melt. Some are even melt plus.

http://www.upstatecoins.com/v/dealer.pdf

The math is to minimize premium on both ends of the transaction.

Buying gold (24K) is gambling pure and simple. The only way to "invest" in it is to deal with it day to day, and even then you break even, as it is literally money - it's the labor you put into it that is worth anything. (Biased opinion, working with gold.) Gold's only allure is that you can have a few hundred grams of "something" that is worth thousands.

As an investment, go with rare certified coins, in my humble opinion. Bars are just something to hold your savings in place.