What is the the difference between gold coin and bullion? Which one shall you invest in?
The actual difference between gold coins and gold bullion is mostly their shape, size, and perhaps the amount of gold they contain. When people are looking to invest in gold, it is often coins they have more access to.
Overall, bullion refers to the content of precious metals, not necessarily their shape. However, bullion can also be referred to as the bars of gold or silver. The most common forms of gold bullion are bars, ingots, and coins.
The value of gold bullion goes back to when gold was used as legal tender. It was most often in coins, as that was the easiest way for people to handle and transport it. The term bullion is most frequently used to refer to the purity of the gold or silver, regardless of whether it is in bar or coin format. This purity is usually around 99.5%
Bullion bars are available as an investment, and they differ from other types of gold because of their purity. Gold bullion value is based on how pure and rare it is and not on its beauty or sentimental appeal. There is no way to make more gold as you can with money, so gold will never lose its value as an investment.
Coins that are made of mostly pure gold. There are often other metals added to help them keep their shape and make them stronger. These are made as collector items or for investment and trade. Coins are obviously much smaller than bars so they are much easier for collectors to store, transport and trade. Coins that are minted by the government are often referred to as bullion coins.
These coins are popular in many different countries and they are distinct by their appearance. Some of these popular bullion coins include the American Eagle, the Canadian Maple Leaf, the South African Krugerrand, the Isle of Man Gold Cat, the Australian Kangaroo, and the China Mint Panda Bear.
Bullion vs Coin
Physical gold is the best way to invest in precious metals because it is not associated with the negative views around mining stocks and gold exchange-traded funds. However, buying physical gold is not without complications because there are several different ways to buy precious metals.
Gold coins are smaller and much more convenient than gold bars. Gold coins may be easier to store if space is an issue. They can be lost or stolen if not stored correctly. Coins are often less pure than bars, as they contain less pure gold.
Plus, some gold coins may come with a higher premium because they can be marked up for design or rarity. But people may prefer gold coins as they have coin collections already.
Gold bars are the largest and most efficient way to purchase and store large amounts of gold. They are often the most cost-efficient because they have the smallest premium. They are also easier to stack and more difficult to counterfeit.
Gold bars can be stored and then sold for any number of things. Gold bars are going to actually cost more, so they are ideal for people with disposable income for investment.
Where to buy gold and silver?
One of the more popular ways to buy physical gold is online. Make sure you find a reputable site and then you can simply choose the type, the weight, and the amount that you want.