Should I buy gold bars or coins?

People often ask us, "Should I buy gold bars or coins?" Whether you are new to investing in metal or have done it before, you should think carefully about whether you want to buy bullion bars or coins. Before making a decision, it's important to do a lot of study. There isn't a single right or wrong answer; the choice depends a lot on the person's needs and circumstances.

Things to think about – Gold Bars or Gold Coins?

Premiums

The premium is the extra cost on top of the spot price of gold that covers things like production, handling, packaging, security, and delivery. To keep premiums as low as possible, think about buying gold bars, especially in bigger amounts. Gold bars have a lower premium because they are made in bigger quantities, which means they cost less to make. For example, even though they both have the same amount of gold, buying a 1-kilogram gold bar is cheaper than buying ten 100-gram gold bars. Remember that big savings might cost you the freedom to do what you want.

Capital Gains Tax (CGT)

In the UK, value-added tax (VAT) is not charged on any investment gold, so sales are VAT-free. But when you sell, CGT is a very important thing to think about. The Royal Mint makes coins that are legal tender in the UK, so they don't have to pay CGT. If there is no CGT, investing in gold coins might give you a better return on your money.

Flexibility

Gold bars with larger units are great for buying, but they might not be as easy to sell or trade. Smaller gold bars, like 1-ounce, 50-gram, and 100-gram ones, as well as gold and silver coins, make it easier to sell again. This gives you the freedom to slowly release funds, giving you quick access to cash or the choice to sell part of your investment to get the most money back.

First-time investors and small investors should think about both coins and bars, especially for investments with smaller values. You might be able to find bars with lower prices, but it depends on the market and what the dealer is offering. If you want to buy in silver, 1-ounce coins are a good place to start. Silver Britannia coins often have the lowest unit cost.

Large Investors

When making big investments, you should focus on getting the best deal to get the most money back. Pick the biggest units you can find, like 500-gram gold bars, 1-kilogram gold bars, or 5-kilogram silver bars. If you buy a lot, you may save even more because the dealer will charge less.

Changing Premiums

In the past, the premiums on bullion coins, especially gold bullion coins, have changed. Gold bars, on the other hand, are usually worth what they're worth in metal.

Storage

The size and weight of your gold affect how easy it is to store. It's easier to store your investment in a bank deposit box, a family member's safe, or your own home when it comes to smaller things like coins. Silver metal, on the other hand, may need more room because it is less dense and worth less than gold.

To sum up, whether you choose gold bars or coins depends on your investment goals, your budget, and your need for flexibility. Each has pros and cons, so think about your own situation when making your choice.

BuyBullion24 Recommends:

We at BuyBullion24 encourage our customers to look into bullion goods that offer the best value for their money, making sure they get the most gold and silver for their money. The best way to buy gold depends on your specific needs, including your personal preferences and the things we've already talked about. Pay close attention to things like premiums and freedom. If you're making big investments, think about the implications of Capital Gains Tax.

If you have any questions about investing in gold, please don't hesitate to call our friendly and knowledgeable team at 020 8861 4443. For any questions you may have, they will be happy to help you. You can also email us at [email protected], and we will get back to you right away with answers to your questions.