When it comes to investing in Precious Metals there are a few different ways to get them into your portfolio. Today we will be looking at the differences between gold bars and gold coins.
Gold bars, also known as gold ingots, are very popular amongst many types of investors, collectors, and doomsday preppers. Gold bars are privately minted and are 24 kt. or .9999 and can be made in multiple sizes. The two different processes for bars is minting and cast. Cast bars are bars that have been made by molten gold being poured into a bar-shaped mold and left to harden. Minted bars must be measured and cut from a sheet of gold and take more time and precision. The smaller bars (around 1 gram) are very popular with doomsday preppers as they can use them to barter and trade in an apocalyptic crisis and are easier to conceal. The size of bars goes up from there and you will typically see the 1 kilo (32.15 troy oz.) being the biggest that is generally offered. There are bars that are much larger, but from an investment, standpoint having that much bullion is very high risk and would be VERY costly to obtain, in addition, those types of bars are known as “Good Delivery Bars” and are mainly supplied for Government use.
Gold bars are a great way to get started into the Precious Metals market as the premium for these is not much more than spot price and with cast bars, they are all unique as when they harden, deforming of the bars id possible so no two will be the same. Minted bars, while a little higher of a premium are still an excellent entry point and come in neat packaging which makes storage easier and will usually have the name of the mint on the packaging as well. Bars will all be dependent on the spot price and will fluctuate with the ups and downs of the market. So, when you are looking to get bars, remember, buy low, sell high.
Gold coins depending on who you ask is the best way to go about your bullion investments. When it comes to gold coins, they can be minted two ways, privately or by the government. Any coin that is minted privately is known as a round and cannot have a face value (dollar value) so they are not legal tender. On the other side of that, coins minted by the U.S. Mint can have a face value and can be used as legal U.S. tender. The face value on the coins is not nearly the true value of the coin, so using it to purchase something would not be recommended. The most popular cons that are minted by the U.S. Mint are the Gold American Eagle and the Gold American Buffalo. These are the coins that many investors and collectors love to have in their portfolio/collections as they are easily recognizable by many people. The Gold American Eagles come in multiple denominations/sizes. 1 oz. $50 piece, 1/2 oz. $25 piece, 1/4 oz. $10 piece, 1/10th oz. $5 piece. The smaller “fractional” pieces are popular with doomsday preppers as well because those pieces are small and easier to conceal and can be great for barter and trade.
When looking to start in your Precious Metals journey, do what feels right for you and what makes sense, some people don’t like bars and some don’t like coins, there is nothing wrong with either. Your portfolio is important and if you have any questions on where or how to start, call us and one of our Account Executives can help you get started today!