Throughout history, gold has always been considered a good investment opportunity, being used as a hedge against any type of economical, financial or currency crises. If you are thinking of buying gold, you should know that it comes in many forms, among which the most important are coins and bars.
Gold coins are refined precious metal products with a round shape, produced specifically for investment purposes. The most common types are the American Eagle, the Australian Nugget, the British Britannia and the South African Krugerrand. Being mass produced, they are quite easily exchangeable through dealers and have a particular gold content and purity. Coins might be the best choice if you only want a modest amount of gold that you can keep for many years.
On the other hand, gold bars are rectangular blocks of metal made by commercial refiners. They are produced in a large range of sizes and have particular distinguishing marks, including the refiner’s mark and the weight, fineness and serial number of the bar. The larger bars can usually be found at the lowest premiums over their gold value, while the smaller ones are more expensive. However, the former may not be such a good investment, because their size makes them difficult to manipulate and commercialize.
When comparing the efficiency of gold coins and that of gold bars, experts say that coins can bring greater profits than bars, as they are easier to sell. This is because the metal in gold bars doesn’t have any kind of official quality or quantity guarantee, so there have been many reports of fake gold bars on the market. This means you may have to pay for an expert examination when trying to sell your gold. Another important problem is that of custody: coins and small bars are easy to transport, so they are best if the investor wishes to have his/her gold close at hand, while large bars are more difficult to deposit.
Finally, the most important thing when expanding your investment portfolio is that you carefully analyze your financial and personal objectives, the amount of money you plan to spend and your need for liquidity. The “best” choice differs greatly from one investor to another, so it’s up to you to determine what would bring you more profit.