Is it Better to Buy Bullion Bars Or Coins?

Planning something is very vital. By planning, we definitely mean investment. Investment is the purchase of anything that has the potential to benefit you in future. Whenever you opt for investment, it is always advisable to own a tangible or physical investment.

Precious metals are a very beneficial source of investment. They are available in many forms, such as jewellery, bars, and coins. Gold and silver are the most common metals for investment. Gold is superior and most advisable metal for investment, as it provides a hedge against the currency debasement, and devaluation. Once you have decided to invest in precious metals, it is always better to invest in bullion bars, or coins.

The word bullion refers to the precious metal bar or coin that is about 99.5 percent pure. It is different from jewellery and numismatic coins, as it does not have any artistic component. The gold bullion bars, or coins trade close to the gold price world over. However, still you have to pay 4 percent or 8 percent premium for purchasing large and small quantity respectively.

It is sometimes very confusing to decide among the bullion bars, and coins, for investment. When it comes to investment, many things have to be considered depending upon the level of the investor. Bullion bars, and coins are characterised by certain features that help you to take a better decision.

Gold bars are available in number of sizes. It weighs from 1000 grams or 1 kilogram to many Oz. They are properly assayed to show accurate gold content of the bar. They are sold at best price. Their good value is beneficial for the large investors. However, they are not accessible to the small investors due to their higher expense. The big bars are available at low premiums over the intrinsic gold value as compare to the smaller.

Bullion coins are the other important way of investment. The mass produced coins are available at very competitive prices. They are sold on mark-ups based on their gold content. Their design and scarcity make them preferable for some investors.

When we compare the bullion coins with the bullion bars, they are feasible with respect to their resale. The bars are not flexible, as you have to sell the whole bar when you need to sell just few grams. It is impossible to slice the bar to get you few grams. Moreover, the larger bars restrict the choice of the dealer, as you have to look for a larger dealer to resale the bar. You may possibly not get a private dealer for your bar. On the other hand, the coins start for the lesser weight, and are almost universally recognised. So they can be easily resold, even to the private dealers. They can also be resold on the premium prices.

Similarly, in case of silver bullion bars, they are compact, and are convenient for large dealers. They can secure large wealth in the small bars. However, nobody can deny the importance of silver coins. They are the top most choice, as 90 percent of them can pick up premiums from the highly investing silver markets.

Source by Jack Wogan

Is it Better to Buy Bullion Bars Or Coins?