If you want to diversify your investments, gold is one excellent addition to your portfolio. Gold has been a valuable commodity ever since, and unlike other assets, this precious metal has maintained its value throughout the years. Though it can deflate or inflate depending on the circumstances, buying gold is still an advantageous way of preserving your wealth and passing it onto the next generation.
With gold assets, there are two types of gold you can invest in. In this article, we'll tell you more about the advantages and differences of each.
Gold Bars vs Gold Coins: The Main Difference
Gold bars are also called gold bullion or gold ingot made of 99.99 per cent of pure gold. These are refined metallic gold in different shapes, but they are usually in a cuboid form. If you scrutinise them, you'll see inscriptions of its weight and purity onto its surface. Gold bars aren't typically sold to the public. They are often held and traded internationally by bullion dealers and central banks.
On the other hand, gold coins have a specific premium value associated with it. They are usually available in the market and mostly get sold to collectors. They have a higher value than their weight, and they are easily transportable.
The Advantage of Gold Bars
Here are some benefits of investing in gold bars:
- You can directly see its value; the weight and purity details of gold bars are inscribed on the metal itself, and you can check its value by a live gold spot price
- You can closely track their rise or fall in value
- When selling your gold bar, you can demand a specific price because you have a basis
- They come in different sizes too; therefore, you can invest in as little as one gram to as large as one kilogram
The Advantage of Gold Coins
While investing in gold coins give you the following benefits:
- They are for people who appreciate the gold's historical value, such as coin collectors
- They increase in value each time since gold coins come in annual series
- Collectors and coin investors usually pay more to complete their collection
- Their rarity and historic value add up to their total worth
The only downfall is that their market value is difficult to quantify. Gold coins' value will rise and fall according to the general price of gold.
Which Is Better?
If you want gold for its inherent value, the gold bar is for you. They cost less than gold coins because they do not carry tender face values, and their cost usually depends on their weight. Moreover, if your gold bars qualify under the HMRC regulations as an investment, they are already tax-free.
If you need to invest more on value, gold coins would be best. They have a higher premium than gold bars because of the commemorative nature and the production cost caused by their intricate design, labour, and minting process. Coins like gold Sovereigns, gold Britannias, and limited special editions of Royal Mint gold coins, to name a few, are CGT (capital gains tax) free in the UK.
Both have size variations you can choose from, and they are also easy and secure storage of wealth. You can keep gold coins in gift boxes, and you can store your grand wealth in the form of a gold bar. At the same time, both are considered a reliable investment.
If you believe in the power of gold as an investment, you only need to decide which of these two forms sound beneficial to you. Each has its unique advantages and value. Whichever you choose, one thing is for sure, getting a piece of gold would be an investment that will be worthy for a long time.
If you want to buy gold or sell gold, we are one of the top Hatton Garden metals buyers in the UK. We buy any form of gold and sell them at good prices. Browse through our site to check our gold price per gram using our gold calculator.