Around the globe, gold is considered a go-to investment. Bullion dealers in Canada and nearby areas thus support the above fact by acknowledging us with the same. Gold is thus refined in every form such as jewellery, coins, and biscuits, and many times, a special occasion is marked with the purchase of gold. This article here by 24gold.ca is however made to discuss between Bullion Coins and Gold Bars and which one will be the best to buy.
What are Bullion Coins?
A bullion coin is made buy gold coins Canada which are entirely made out of gold. Bullion coins have been minted since 1800, and are approximately 90-92% gold. However, most of today’s bullion coins are pure gold. Also, bullion coins have an extra premium attached to them. This is due to the fact that they can be used as legal tender. Furthermore, many people are sentimental about the historical value that a bullion coin may hold or represent. For many investors, buying bullion coins can be easier when it is compared to jewellery. Also, there are different channels where investors can purchase these coins from local jewellers, authentic online sellers, Stock Holding Corporations and many more. Moreover, a bullion coin purchased from one source should be sold back to the same source, as sometimes it might return a lower resale value depending on the market price.
What are Bullion Bars?
Bullion bars are precious refined gold that is made to meet the standard conditions of manufacturing and labelling by both government and private authorities. Also, bullion bars are also called gold bars or sometimes, gold nuggets. The large bullion bars are made by pouring molten gold into the moulds. However, the smaller bullion bars are made by minting or stamping the rolled gold sheets. The Central ministry holds the bullion bar reserves.
Gold bars are produced in pure gold and come along with a certificate that guarantees their weight, purity and the requirements of Gold Standards. Moreover, investors with large budgets prefer bullion coins because of their low premiums.
In the past few years, in countries like Canada, gold bar prices have been favourable, hence allowing more individuals to buy gold at the lowest price per gram. Hence, bullion bars are one of the most cost-effective ways to invest in gold.
Advantages of buying bullion coins
- Bullion coins come in various sizes, finishes, designs, prices, grades,s, and origins. Investors hence can purchase them on the basis of their budget and personal preference.
- Many bullion coins are minted by the government that safely guarantees the gold content, purity and design.
- Bullion coins also offer liquidity as they can easily be traded. However, investors do have to wait for a buyer. They are also universally recognized and easy to sell.
- Investors who purchase bullion coins need not worry about inflation or pay capital gains tax until they sell them.
Advantages of buying bullion bars
- Bullion bars are available in various sizes ranging from 1 gram to 1kg. Therefore, they are rightly suitable for any investor’s budget.
- A bullion bar is a standard for gold investment because they are exchangeable worldwide to any bullion dealer.
- It is also ideal for long-term investment if the investor has no intention to sell bullion bars from your investment portfolio.
- Bullion bars are cheaper than bullion coins as they are cheaper to manufacture. For instance, a larger bullion bar will have a lower manufacturing cost than a smaller bullion bar.
Based on the above information, 24gold.ca suggests that investment in gold offers the best value of return for investors. Investors can choose to buy bullion coins or bullion bars based on their situation; it all depends on their personal preferences and circumstances and all the factors considered. There is no right or wrong answer between buying bullion coins or bars. It is all about personal choices and the risk of tolerance level one can handle as an investor.
For more insightful details and advice, feel free to reach out to one of our expert consultants and get started with a better approach to inventing bullion coins and bars.