For many people new to gold bullion, deciding whether gold coins or gold bars provide the more practical and potentially lucrative investment can be difficult. This article outlines the distinctions between these two forms of gold.
Why Buy Gold?
Gold investing has historically been presented as a portfolio stabilizer because gold prices often rise when other investments decline. During a serious economic contraction, such as a major currency devaluation, buying and selling gold may help someone remain financially afloat in a worst-case situation.
Buying Gold Bars
For buyers seeking the lowest per-ounce gold cost, obtaining gold bars from a reputable coin and bullion dealer can be a strong choice. Most financial institutions, banks included, do not sell gold bars, so research is important before making a purchase. Like gold coins, however, gold bars are private and liquid assets. In general, bars carry lower prices or premiums above the continually changing gold spot price.
Buying Gold Coins
Gold coins may serve as a defense against inflation. This form of currency reaches back to ancient civilizations around 550 BC. Governments minted some gold coins and guaranteed their gold content, purity, and weight. Capital gains were not due on gold coins until an owner chose to sell. Coins differ in size, finish, design, availability, numismatic potential, price, grade, and liquidity. The choices for gold-coin investors and collectors were, in practice, nearly limitless.
When this article was published, Atlanta Gold & Coin Buyers described itself as a full-service coin and bullion dealer providing transparent gold and coin transactions online and by mail. Readers were invited at publication to use Contact us at 404-236-9744 for an appraisal appointment and information about its approach to buying and selling rare coins and bullion.
