Coins Or Bars – Which Is Better?

Is it better to buy bullion coins or bars

Coins or bars depend on your investment goals as a bullion investor, with coins generally commanding higher premiums due to government backing; bars offer greater liquidity.

Bars may offer lower premiums and greater availability, though they don’t possess the numismatic value that makes coins so desirable as investments.


Bar investments tend to be cheaper per gram for investors seeking large amounts of gold bullion than coins because they’re either “minted”, in which sheets of gold are cut to size by machine, or cast, in which liquid gold is poured into an mold to form solid forms. Producing them requires far less labor-intensive processes compared to coins’ complex designs and increased production costs.

Smaller gold bar sizes such as 50g and 20g provide an ideal balance of value and flexibility, while 1kg bars provide substantial investments. If you plan on selling off part of your gold bullion later on, gold coins might offer greater returns due to lower premiums that allow easier sale.

Gold coins are often ideal for buyers making modest purchases, as they come in iconic designs from The Royal Mint and are exempt from capital gains tax (CGT). This makes them a suitable option for first-time buyers on tight budgets or those just starting out.


Coins are generally the best choice for investors when purchasing precious metals, as they are easily identifiable and can often command a premium over gold’s spot price. However, coins with historical or commemorative value often command higher premiums per gram than bars.

These coins are valued more due to their history, minting costs, and limited availability; making them the go-to coins among numismatists and coin collectors alike.

Bullion refers to any precious metal, with gold and silver being among the most commonly associated precious metals. Gold and silver are known for their consistent quality and purity, making them popular choices among investors looking to diversify their portfolio with less volatile assets like stocks and bonds; plus they are highly liquid assets that can easily be sold off to dealers or other investors.


Experienced bullion investors and market participants understand that “bullion” refers to high-purity precious metals such as gold, silver, and platinum that are predominantly traded through major trading hubs such as London Bullion Market Association (LBMA) as Good Delivery bar contracts. Rare coins such as 1804 Draped Bust Dollar can also be considered collectible pieces; however, their intrinsic gold or silver content does not make them qualify as bullion.

Due to lower manufacturing costs, bullion bars tend to be more cost-effective per gram than coins. They’re produced as simple blocks of Precious Metal bearing the manufacturer’s stamp and serial number or can even be melted and cast to create intricate designs. Available from 1g to 400oz in sizes to suit all investment goals; easily stackable; shipped in plain plastic bags or rolls for convenient storage – bullion bars make great investment choices!


Finding a safe way to store bullion coins or bars can be difficult for many individuals, yet some choose to hide their metals out of sight under floorboards, in a shoebox in the closet, or burying them in their garden – potentially making retrieving your assets much harder if needed.

Other investors opt for safety deposit boxes as an alternative method of protecting their precious metals. While these providers charge a minimal fee to store everything from gold and silver bars to bank notes, this provides peace of mind knowing your precious assets are safe; but be wary that there may still be risks involved.

Your provider may not know about your possessions and it could take days before your gold or silver is returned if necessary. Also, keep your coins and bars separate when handling bullion to protect it from scratching, devaluation and moisture-induced tarnishing; always wear gloves or use hand sanitizer before handling bullion to avoid fingerprints.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

Categorised in: