Metal coins are more collectible than ingots. And because they're universally recognized, they're easier to resell or trade than ingots. Coins are valued as legal tender in the country where they are minted and are valued on the market for their precious metal content. For investors, both silver coins and silver ingots offer unique advantages.
Silver coins have a greater divisibility than silver ingots, making them easier to buy and sell. On the contrary, silver ingots have lower production costs, giving investors more return on their investment and a better chance of making significant monetary gains. Consider your long-term investment objectives before buying silver to determine if the coins or ingots will best suit your needs. In general, the premiums of gold bars tend to be lower than those of gold coins of the same weight and fineness.
Why? It all boils down to production costs. Gold coins can be more expensive to produce than gold bars because of their intricate design, emphasis on condition and appearance, and therefore higher labor and machining costs. In addition, the price of a gold ingot is mainly based on its weight. In the case of some gold coins, such as certified ones, the rarity and grade of the coin are also taken into account in the final price, so the gold content is not the only factor that influences the final price of the coin.
Coins are usually a better investment bet for a couple of reasons. They offer much better divisibility than having large silver bars, providing flexibility to sell small quantities. If they live in the issuing country, they may also be exempt from capital gains taxes. Bullion may be slightly cheaper due to the lower production cost, but quantity discounts can be obtained when purchasing batches of coins.
Together, gold bars and gold coins can work hand in hand to strengthen your precious metals portfolio against life's many uncertainties and provide you with peace of mind. Since King Croesus of Lydia ordered the first gold coin to be minted around 550 BC. C., civilizations around the world have been fascinated by the charm of gold coins, an attraction that is still strong today. If you want to buy physical gold at the lowest price per ounce, gold bars may be a good option, since you can generally buy more ounces of gold for less than if you were to buy the same amount of gold as individual coins.
Like coins, gold bars are portable, private and liquid, although their advantages are often less well known than gold coins. Some gold coins are minted by sovereign governments that guarantee the gold content, weight and purity of each coin.