Over the past 50 years, the value of gold has risen about tenfold. And while the price of gold goes up and down, the precious metal remains a popular way for investors to store their money.
In this article, we’ll talk about investing in gold coins vs bars. If you’re thinking about gold investments, you should know which option is right for you. Let’s look at their differences and similarities so you can make an informed decision when it’s time to invest.
Gold coins and gold bars are both types of gold bullion. They’re made from real, solid gold, and they’re traded on the commodities market just like any other precious metal.
With these similarities, there are also many differences between the two that you should know before investing.
The cost of gold coins will vary depending on the size and type of coin. Investing in gold coins is more expensive than investing in gold bars. This is because gold coins:
If you want to make money by investing in gold for its investment potential rather than its aesthetic and historical value, gold bars are a more affordable option.
You might sell gold bars faster than gold coins. This is because it’s easy for a buyer to identify the price of your gold bar using its spot price.
Gold coins also have a spot price. However, the value of gold coins can change faster than gold bars if there are fewer coins available. A buyer will probably pay more than the spot price for gold coins if they are rare and in high demand.
Gold bars make a convenient way to store large amounts of wealth. They’re easy to transport and you can keep them in a safe.
Gold coins are even easier to store because you can put them in a shoe box or drawer until you’re ready to sell.
Storing gold bars or gold coins in your home carries some risk. If a thief breaks in, you could lose all of your money. The safest place to store gold is in a secure vault at a bank or other financial institution.
Gold bars and coins are two of the most popular ways to diversify an investment portfolio. Diversification means owning a variety of assets so that you can withstand losses in any one type of asset.
Only invest about 10% of your portfolio in gold. Invest the rest of your portfolio in other types of assets, such as stocks, bonds, or mutual funds.
If you’re thinking about gold coins vs bars, they’re both great investment options. Gold coins are more expensive than gold bars, but they also offer you more flexibility. If you want to invest in gold for its monetary value or for its potential as a savings vehicle, then bars may be preferable.
For help making the right choice, you can sign up for our newsletter and get live spot prices sent to your email every day. CMIGS is a full-service precious metals dealer, and we’re happy to explain your options so that you can invest in the best way possible.