Gold coins tend to have a higher premium per ounce compared to gold bars.
Gold
coins are legal tender and minted by a sovereign government mint, while gold bars, for example, are minted by a private mint. gold tend to be lower than those of gold coins of the same weight and fineness. Why? It all comes down to production costs.Gold coins can be more expensive to produce than gold bars due to their intricate design, emphasis on condition and appearance, and therefore higher labor and machining costs. In addition, the price of a gold bar is mainly based on its weight. With some gold coins, such as certified ones, the rarity and grade of the coin are also factored into the final price, so gold content isn't the only factor influencing how much the coin will cost you in the end. Basically, this is a misunderstanding of what gold bars are.
The common perception is that rectangular pieces of gold (“bars”) are the most cost-effective, and perhaps the only available, form of gold bars. The same idea says that round pieces of gold (“coins”) are not really gold bars. There is a common misperception that “coins have a limited supply, are expensive and perhaps, to a certain extent, are collector's items. Like coins, gold bars are portable, private and liquid, although their advantages are often less understood than gold coins.
Since the main value of the product is its gold content, no other type of alloyed metal is of much use there, so you can usually guarantee that a gold bar will be 24 carats. Money Reserve's free gold information kit, including special offers, diversification strategies and a guide to precious metals. You can buy and sell both small and large quantities, spreading your activity over longer periods of time to take advantage of different gold prices. If you want to get the best return on investment from your gold products, you'll want to buy from a trader who charges the most competitive gold premiums for their products.
The British sovereign gold coin and the Britannia gold coin are examples of this, with new annual versions of the coin being minted every year. Choose from gold bullion coins, test coins, or collectibles based on your individual goals, budget, and personal preferences. Usually, you can tell the value of a particular quantity of gold bars very easily, since the equivalent weight and purity will be inscribed on the metal itself and the value of that metal is governed by the spot price of live gold. If you want to invest in the gold market, you'll have to decide how you're going to do it.
For investors who want to invest strictly in the value of gold rather than in its cultural and historical tradition, this is a good way to do so. When you hear gold bars, visions of underground bank vaults hermetically sealed and stacked high with shiny gold bricks may come to mind. It can be more difficult to measure the best value of a gold coin, since its collector value is less easily measured by the live spot price. But as with any commodity, the price of gold can rise or fall for several reasons in the short term.
Size, finish, design, price, grade, rarity, origin, your options are almost endless when it comes to gold coins. Gold coins will have slightly higher spot price premiums than gold bars, due to additional minting costs and the commemorative nature of their value.
