Physical Gold & Silver: Bars, Coins, and Rounds
Physical gold is sold in the form of bars, coins and rounds. These physical forms of gold are internationally regarded as store of value – which is a textbook definition of money. Physical gold, unlike its paper counterpart, is a safe haven and can dependably diversify your portfolio, protecting it against volatility in other assets. It offers protection against currency debasement and physical gold will never go bankrupt or default on a promise. It isn't produced by governments nor is it value-dependent upon them and can be bought privately and anonymously.
Differences Between Bars & Coins
When given the choice between coins or bars, there are some differences to consider.
are round and produced to exacting specifications by governments the world over. Coins carry the status of legal tender. Each side of a coin carries a design which changes from year to year. Coins are come in a variety of sizes - typically one, one-half, one-quarter, and one-tenth troy ounces. Their weight and purity are guaranteed by the governments that produce them.
are rectangular slabs produced by private mints and usually marked by the mint that produced them. They vary slightly in size from mint to mint. They can be purchased in 1-to 10-ounce sizes. Unlike coins, they are not considered legal tender.
Advantages of Gold and Silver Coins
Metal coins are more collectible than bars. And because they are universally recognized, they are easier to resell or trade than bars. Coins are valued as legal tender in the country in which they are minted and are valued in the market for their precious metals content. Sometimes coins can be purchased at or below the spot price of the metal. For further analysis, check out our post on old coins that are worth money
Additionally, bullion coins are mass produced, therefore available at very competitive prices compared to their bar counterparts. In addition, rare gold and silver coins with strong numismatic value or collector appeal are not only investments but are considered pieces of history and as works of art. (For advice on buying gold and silver, check out our gold investment advice
on how to invest in gold, and see our silver bullion
catalog for some great silver options to invest in).
Historically they have proven to yield the highest long-term returns. This sector is strongly subject to the ebb and flow of supply and demand, leaving these coins open to sky-rocketing prices, regardless of the current bullion market. These coins can form the cornerstones of a serious collection, a diverse portfolio, and a unique family estate. Regardless of the form in which they are purchased, physical metals are always a better investment than paper currency.
Advantages of Bars
It should be noted that there a few advantages of buying a bar instead of a coin. The main thing is pure value. The weight of each bar may differ, but if one is going to spend a lot of money, a bar might make sense since you can put all of that money into one item, such as a bar, as opposed to coins. Additionally, a bar might be more sturdy, and because it is bigger, frankly, it is easier to track and a precious metals owner is less likely to lose it.
So, Bars or Coins - Which Is It?
Two big reasons which make coins more desirable as an investment is simply because coins are universally recognized, so there is significantly less risk than buying a bar. Additionally, the fact that they can be purchased at spot value, and sometimes below, makes it a more attractive purchase. Don't hesitate to contact us at IPM for more information - we have nearly 20 years of experience in the industry, and we are a recognized precious metals dealer.