This guide for beginners allows you to better understand the differences between gold coins and bars; this guide helps you make the right choice, analyze the products, and start with the suitable bars/coins.
Gold coins can offer small amounts of Gold in a minimal format. In addition to the historical side for some coins or unique designs for others, gold coins allow you to acquire Gold regularly and simplify sales when you need a little cash. It is also an excellent way to offer or bequeath gold coins in equal shares between several relatives. It is also more pleasant to have gold coins of origin, history, and various sizes.
The only downside to gold coins is their potential bounty: some gold coins have a high yield due to their rarity, condition, or design. These different factors can inflate the price of certain parts, potentially making you “spend” more for “nothing.”
It will be necessary to choose the coins with the smallest possible premium from an investor’s perspective or be aware that certain in-demand or RareCoin may have a higher premium.
Gold coins are, for us, the ideal choice for most investors. Whether you own a rare hundred or thousands of dollars to invest per month, there will always be a gold coin to suit your needs. Above all, gold coins offer the possibility of acquiring fairly precise quantities of Gold and simplifying recurring transactions. We, therefore, advise all our clients, young and old, beginner, or experienced, to have a specific part of their gold assets in the form of coins.
When buying a gold coin, it is always best to know the few minted details on each design to avoid counterfeits. In addition to these details, also check the condition of the part.
- Identify the model: check the details of the part corresponding to the originals.
- Old, too shiny, ancient coins are generally avoided, as they have been cleaned and may wear out/have wear marks, causing them to lose market value. Old parts with some “dirt” is often a good sign.
- Significant blows or scratches should be avoided because the part is potentially downgraded. There may be small scratches from normal wear or minor scratches without incidence. Still, scratches on the edges or deep scratches on the essential details can cause the market value of your piece to lose.
- Coin mounted pendant/jewelry: avoid at all costs, as these coins have in 99% of cases been set/polished/manipulated in a way that will undeniably lose market value.
- The weight: the gold coins all have a reasonably precise weight. Feel free to weigh these pieces to ensure they are the same or slightly different.
The premium of a gold coin can vary depending on different factors.
- The coin’s rarity: some collectors are willing to pay (a lot ) more for rare gold coins to complete their collection.
- Edition: coins minted in limited edition (annual or commemorating an event) can be worth more by their rarity/design/sentimental value.
- Coin Condition: Generally, well-preserved gold coins are in better condition than others in circulation, driving up the purchase price.
- Supply/Demand: the more a part is requested, the more the supply will increase the costs. This law of supply and demand varies from one market to another, so you must be careful when buying/selling in a different country.
It’s simple: gold bars are bars of fine Gold, usually 999.9 purity. Gold bars are ideal for investing in Gold for the long term. The advantage of gold bars is that you have no premium to buy and sell, and you do not risk paying more for your bar because they were minted at a particular time.
To get the advantage of all the benefits of gold bars, we advise you to buy gold bars from 50 grams and go to the biggest to have the lowest possible commission. You have almost no way and only pay the counter commission, but you end up with a bar of a significant weight which makes you lose a little of this freedom to sell part of your Gold.
We advise you to buy gold bullion when you know that you will not need to sell your Gold in short/medium term and have enough capital to buy at least 100 grams. Although, in theory, the minimum possible is the bar of 50 grams.
The different details you should see when you buy an LBMA-certified gold bar are indicated on the bar. The best way is to check the other models on the founder’s website or compare photos on the Internet.
- Weight: either in grams, ounces, or kilograms.
- Gold Purity: All LBMA-certified gold bars are struck at 999.9‰. You will therefore find the indication 999.9 on all the bars.
- Fine Gold: in addition to 999.9, LBMA bars indicate “FINE GOLD,” “FEINGOLD,” or a local variant.
- Serial number: you can find a unique serial number on almost all LBMA bars.
You should also know that there are two types of LBMA-certified gold bars: minted and cast. Here is a brief summary of what you need to know about the two types of bullion.
- Minted: these are precisely machined bars, offering uniformity in the bars produced. The details are exact, and the bars are generally gleaming. The bars made in a minted way are generally small weight bars, up to 100 grams. These gold bars have the advantage of usually being in their original packaging, acting as a certificate. The genuine interest in minted ingots is that they are aesthetically prettier and technically easier to exchange anywhere.
- Poured (or cast): ingots with a slightly more “artisanal” shape, simply poured in an ingot mold and then stamped with the various information described above. Cast ingots are very popular with investors because they are not expensive to handle. Generally, they can find a large quantity of Gold in a very compact format, simplifying storage.