Should you buy gold coins or gold bars as an investment?

You want to invest in physical gold but are unsure whether to buy gold coinsor gold bars ?

This is a common question when making your first investment. Both options allow you to own physical gold, but they don't exactly meet the same needs.

Available budget, bonus, resale value, flexibility, or even the desired amount of gold: there are several factors to consider before making a decision.

So, gold coins or gold bars: which option should you choose for investing?

Coins and bars: two ways to invest in physical gold

Unlike some gold-related financial products, buying a coin or a bar allows you to actually own physical gold.

Bullion is available in many sizes: from just a few grams for small bars to 1 ounce, 50 g, 100 g, 250 g, 500 g, and even the famous 1-kg bar.

Investment gold coins, on the other hand, are available in various weights, sizes, and finenesses. Among the best known are the Krugerrand, the Sovereign, the 20-Franc coinsor even the 50 Mexican pesos.

The principle remains the same: the value of these products depends largely on the amount of gold they contain and on changes in the price of gold.

However, their price may also include a premium.

What is the premium on a gold coin or gold bar?

When you buy physical gold, the price you pay does not necessarily correspond exactly to the value of the metal contained in the product.

The difference between the value of the gold contained in the product and the price at which it is offered is generally referred to as a premium.

This premium may vary depending on the product, its format, its availability, and market conditions, among other factors.

For example, small ingots may have a higher price per gram than large ingots.

As for parts, certain items may also command a higher or lower premium depending on demand and availability.

It is therefore important not only to compare the total price of a coin or bar, but also the actual amount of gold it contains and the price paid for that amount.

What are the advantages of gold coins?

One of the main advantages of these parts is their affordability.

Buying a coin generally requires a smaller budget than buying a large ingot.

They therefore allow you to start gradually and increase your gold over time.

Good flexibility when reselling

Owning multiple properties also makes it possible to sell only a portion of your investment.

Let's say you have ten gold coins and need to withdraw part of your capital.

You can decide to sell two or three of them and keep the rest.

This flexibility may be appealing to investors who do not want to have to sell all of their gold at once.

Internationally Recognized Coins

Certain gold coins are particularly well-known on the international market.

This is particularly true of the South African Krugerrand, which is one of the world’s most famous investment coins.

Other coins, such as the British Sovereign and certain historic French coins, are also widely recognized.

This recognition can make it easier to identify them and facilitate their sale to specialized professionals.

What are the disadvantages of gold coins?

Coins aren't always the cheapest way to buy a large amount of gold.

Depending on the item and market conditions, the premium may account for a larger portion of the price.

It is also important to distinguish between investment value and numismatic value.

Some rare coins or those sought after by collectors may be worth more than the value of the gold they contain.

But when investing primarily in physical gold, the goal is generally not to speculate on the scarcity of a coin.

It is therefore important to understand exactly what you are buying.

What are the advantages of gold bars?

Gold bars allow you to invest directly in a clearly defined amount of gold.

The weight and concentration are listed on the product, which makes them relatively easy to understand.

They also come in a wide variety of formats.

You can find ingot blanks weighing 5 gor 10 g, as well as bars weighing 1 ounce, 50 g, 100 g, 250 g, 500 gor 1 kg.

The price per gram is often more favorable for larger sizes

The larger the bar, the more the costs associated with its production and distribution can be spread out over a large quantity of gold.

The proportional premium therefore tends to be lower for larger formats.

For someone looking to invest a substantial amount in physical gold, a gold bar can therefore be an attractive option.

A product that's easy to understand

A 100-gram gold bar contains a clearly defined amount of gold corresponding to its weight and fineness.

For an investor seeking, above all, exposure to physical gold without the collectible aspect, this simplicity is an advantage.

What are the disadvantages of bullion?

The main point to consider is divisibility.

The larger the bar, the harder it becomes to sell only a portion of your investment.

If you own a 1-kg gold bar, you obviously can't decide to sell just 100 grams of it.

You must sell the entire bar.

That is why some investors prefer to buy several smaller bars rather than a single large bar.

This strategy offers greater flexibility, even though the price per gram may be slightly higher.

Coins or bars: Which is easier to resell?

Both can be easily traded when they are well-known, authentic, and properly identified products.

The difference lies more in the flexibility of resale.

Someone who owns several coins may easily decide to sell just a few of them. The same applies to someone who owns several 10- or 20-gram bullion bars.

Conversely, owning a single 500-gram or 1-kilogram bar means selling a significant amount of gold in a single transaction.

So you need to think about resale right from the moment of purchase.

What's the best way to start investing in gold?

For a first investment, it may be a good idea to choose a format that allows you to start gradually.

Recognized gold coins or small gold bars can serve this purpose.

Investors with a larger budget, on the other hand, may be interested in 50- or 100-gram bars, or even larger sizes.

The choice therefore depends mainly on three factors:

• your budget;
• the total amount you wish to invest in gold;
• the flexibility you want to retain when reselling.

There is no one-size-fits-all answer.

Can you buy both coins and bars?

Yes, and besides, you don't have to make a definitive choice between the two.

One strategy may involve combining several forms of physical gold.

For example, an investor may hold part of their gold in the form of bars and keep another portion in the form of coins. Bars allow for a significant amount of gold to be concentrated in a compact form, while coins offer greater flexibility for making smaller transactions.

The allocation will, of course, depend on each person's budget and goals.

Coins or bars: Which should you choose based on your profile?

If you want to start with a relatively limited budget, the piecesor small ingots may be particularly suitable.

If flexibility is your priority, owning several coins or several small bars allows you to sell your gold gradually.

If you’d like to invest a larger amount and are looking for a generally better price per gram, you may want to consider larger bars.

Finally, if you want to enjoy the benefits of both options, there’s nothing stopping you from gradually building a portfolio that includes both gold coins and gold bars.

Which gold coin should you choose for investment?

Several types of coins are commonly used for investing in physical gold.

The Krugerrand is, in particular, a well-known international benchmark.

The British monarch, the 20-franc gold coins or even the 50 Mexican pesos are also among the coins regularly sought after by investors.

Before buying, it is important to check their weight, fineness, and price in relation to the actual amount of fine gold they contain.

Which gold bar should you choose for investing?

The choice depends mainly on the budget.

The 5-gram and 10-gram ingots allow you to start gradually.

The one-ounce bar, which is approximately 31.1 grams, is a widely used international standard.

The 50-gram and 100-gram sizes may be suitable for investors who wish to allocate a larger portion of their budget to physical gold.

Finally, the 250-gram, 500-gram, and 1-kilogram bars are intended primarily for substantial investments.

The larger the size, the more important it is to consider the flexibility you might need if you decide to resell it in the future.

Should you choose gold coins or gold bars?

Coins and bars each have their own advantages.

The gold coins are particularly attractive because they are affordable and flexible. They allow you to invest gradually and sell only a portion of your gold when necessary.

The gold bars , on the other hand, allow for a higher concentration of gold in a single product, and larger sizes generally carry a proportionally lower premium.

For many investors, therefore, the best solution is not necessarily to choose one or the other exclusively.

Combining coins and bars can help strike a balance between price, the amount of gold held, and flexibility.

In any case, buying gold should be in line with your financial situation and part of a well-thought-out wealth management strategy.

Buy your gold coins and bars online or at one of our branches

Are you interested in buying physical gold?

At Agence de l’Or, you’ll find a selection of coins, small barsand gold bars suitable for a variety of budgets.

You can buy gold directly on our online store, with prices updated based on changes in the price of gold.

Would you prefer to get advice before making a purchase? You can also visit one of our branches in Belgium. Our specialists can show you the different formats available and help you understand the differences between coins and bullion bars.

Whether you choose to buy gold online or in person at a branch, Agence de l’Or is here to help you make your purchase in a simple, transparent, and secure way.