There’s a difference between all these terms and if you haven’t been dealing with gold products before, you’ll surely don’t know it. If you’re about to invest in gold or silver, you must understand what means what and invest accordingly. All these have their own pros and cons so read about them here, and then make a decision.
What are coins
The study of collecting paper money, tokens, and coins is called numismatics. Coins are the most popular form of people involved in this interesting hobby and business. Most coins from the last century and before are made of gold and silver. The amount of the metal inserted inside id often different.
For example, 24-carat gold coin means this coin is made almost completely of gold. It is impossible to make a 100% gold or silver coin. The higher the amount of the metal inside, the higher the value. Read about gold purity in jewelry in this article.
Coins were minted to be used as a payment method. Beginning from ancient times when kings produced golden and silver coins up to the 20th century, coins were used for payment all around the world. People today collect coins from different ages and places for their own pleasure.
If you want to invest in coins you should know that original coins often have a much higher price than the value of the metal inserted. The historical value is also important. That’s why some coins have a price of millions of dollars. In fact, the highest price paid for a coin was $10 million.
Investing in coins means that you are protecting your money because the price of the gold and silver drops very hard. On the other side, as time passes, the historical value can only go up. In a couple of decades, coins you’ll buy today might worth ten times more.
What are bullion
Bullion are also coins, but just by geometrical form. Bullion have no numismatic high value and have no historical value. However, they are still made of gold and silver and are completely made to look like coins.
They are made for collecting and for investing but you can’t expect their value to become higher some day. Their value depends solely on the current price of gold or silver on the market. If the prices drop, the gold or silver bullion prices drop too. If it goes up, the bullion price goes up too.
People decide to buy bullion because they are made to look beautiful and are also a great gift. One gold bullion can range from $100 to more thousands of dollars. Silver bullion are way more affordable.
Modern coins or bullion are usually made with better quality than before. The minimum amount of gold in bullion should be at least 90%. Most of the bullion today are made 24 carats or with 99.99$ gold inside.
What are bars
Bars are pure gold or silver melted into the shape of a bar. Following the standards, manufacturers of gold bars must make them with absolute quality of 99.99%. Gold bars are made for investment and people who want to protect a lot of money from inflation or different socio-economic fluctuations buy gold bars. Silver bars are less expensive and that’s why people with a lot of money prefer gold.
Bars are easy to store and transfer. Unlike coins and bullion, bars can be placed unnoticed in a suitcase or a safe and be kept of transferred with total discretion. The standard weight of gold bars is 400 troy ounces. At the moment, this is around half a million US dollars per bar.
Similar to the gold and silver bars are the ingots. An ingot is a larger bar with a specific form. The ingots are made of pure metal and are usually used for further processing.
According to all written above, we can make a clear decision that your investment is best done in the item that you think it’s most appropriate. If you want clear protection of your money, invest in bullion. If you want to invest a lot of money, buy bars, and if you like the idea that you can make a profit later in life, go for the coins.