Connect with us

Precious Metals

Pros & Cons of Buying Gold Bars vs. Ingots vs. Coins (+32K Views)

It is now easier for you to convert your savings into gold than ever before and this article outlines the reason for buying physical gold and the advantages…

Share this article:



This article was originally published by Munknee
Automatically receive the internet’s most informative articles bi-weekly via our free bi-weekly Market Intelligence Report newsletter (sample here). Register in the top right hand corner of this page.

It is during difficult times [such as these when] quantitative easing and currency wars have highlighted the volatility and vulnerability of currencies…that the true, safe value of gold really stands out…Fortunately, it is now easier for you to convert your savings into gold… [than ever before and this article outlines the reason for buying physical gold and the advantages and disadvantages of buying gold bars, ingots and/or coins. Read on!]

This version of the original article, from, has been edited* here by for length (…) and clarity ([ ]) to provide a fast & easy read.  For the latest – and most informative – financial articles sign up (in the top right corner) for your FREE bi-weekly Market Intelligence Report newsletter (see sample here).

Lorimer Wilson with Gold Bar Editor-in-Chief Lorimer Wilson Holding a Gold Bar


If you decide to go to a dealer… in London,  New York, Sydney or Toronto, they probably sell whole gold bars or smaller fractions as gold ingots and it all seems very safe and easy – but be careful what you pay.

The price of a 1Kg bar should be just a few percent above the price of gold but the smaller ingots do not compare so well. They are often sold up to 50% higher than the spot price.

You buy the gold over the counter and then what?

  • Ideally you should store it in a vault for security.  This protects the integrity and value of your investment because it never leaves the professional circuit and there are no unnecessary transport costs to eat away at your investment. It also makes resale very simple because the gold does not have to move. Remember that your bar or ingot will lose value immediately if it has left the professional circuit.@Investment Insights


When it comes to selling you will need to pay (and find) a professional to assay (verify) your gold…

  • In the case of expensive smaller ingots the gold price will have to increase drastically to recoup the 50% premium before any return is made.
  • In the case of a 1 Kg bar you will need to find a buyer who has the money for a whole bar and trusts you that it is what you say it is.
  • A kilo bar is difficult to transport. At airports it is considered as a blunt instrument. It can only be insured at the post office for a maximum value of five thousand Euros (or equivalent).
  • There are also false ingots which are either plated or filled with tungsten.
  • The price of bullion bars only increases with the spot price. This is important to remember at resale. The most important moment for a gold investment is the moment at which you choose to sell it i.e. for a maximum return on investment.

In summary,

  • beware of over-priced small ingots,
  • do not take possession of gold and
  • when you buy a 1Kg bar ensure that it is from a reputable professional source and close to the spot price.
  • [While] bars and ingots do not maximise the benefits during periods when the price of gold is high…allocated physical gold is always preferable to “paper” gold as an investment.

A Better Buy: Gold Coins

Gold bars and ingots, however, are not the best physical gold investment. Gold coins are.

  • Why?  Notwithstanding the possible 50% upcharge one must pay for the convenience (portability, weight, cost, ease of storage, etc.) of owning gold coins:

a) they rise in price with the gold price reflecting the pure gold content they contain,

b) their “premium” increases when demand is high and

c) the “premium” can be different depending on:

  • which country the specific coin brand (South African Kruggerand; American Eagle; Canadian Maple Leaf; the Swiss Vrendi; the UK Sovereign; etc.) is being sold in,
  • the demand for specific brands and
  • the extent of supply of specific brands by location.

When the premium of a gold coin rises dramatically, even if the gold price doesn’t, it means buyers are seeking the coin as a store of wealth and safe haven.

Physical gold investment is an excellent way to protect your wealth, especially during times of crisis and instability.

Scroll to very bottom of page & add your comments on this article. We want to share what you have to say!

*Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.

Related Articles:

1. These Sites Are the  BEST Places to Buy Gold & Silver Online – Here’s Why

Our review of the best places to buy gold online…[are] dependent on what your goal with the gold is — amassing physical bullion for financial security or to speculate on gold prices. Below are strategies and recommended dealers for each approach: Words: 532

2. What Do Gold Measurements “Troy” Ounce and “Karat” Really Mean?

You have no doubt read countless articles on the price of gold costing x dollars per “troy ounce” or perhaps just x dollars per “ounce” but the difference between the two measurements is significant. For that matter, what’s the difference between a 24 karat gold ring and an 18 karat gold ring? Let me explain. Words: 863

3. Before Buying a Gold-related ETF Check Out These Alternatives

There are many legitimate reasons to trade in gold and its derivatives. Gold has been proven time and time again to be an excellent “safe haven” investment, a holding that will appreciate in value during times of economic uncertainty. As such, gold may offer some valuable hedging and diversification benefits for a long-term portfolio. A number of exchange-traded products offering exposure to gold prices but not all gold ETFs are created equal. Here’s a quick rundown of factors to consider when making an investment in a gold ETF. Words: 1268

4. Surprise! A Close Look at GLD Reveals What it IS and is NOT

The most common misunderstandings regarding the primary gold ETF, SPDR Gold Trust (NYSE:GLD) is that it buys and sells gold. That is not the case. It is just a paper asset. It is not a way to buy gold and have someone else store your holdings for you. It is just an innovative way to “own gold.” [Below I outline more of just what GLD is and is not:] Words: 1470

5. All Gold & Silver ETFs Are NOT the Same: a Lease vs. Own Comparison

I have always been leery of the two big exchange traded funds, SLV and GLD, because they lease the gold and silver that they sell you. I much prefer the ETFs SGOL, CEF, PSVL and PHYS which actually own the gold and silver they sell you and store it for you segregated vaults. Words: 717

6. All Gold and Silver ETFs are NOT Created Equal! Here’s the Best

Whole oceans of ink have been spilled detailing the good and not-so-good points of the closed-end fund CEF (Central Fund of Canada) and the twin ETF’s GLD (SPDR Gold Trust) and SLV (iShares Silver Trust) funds. My goal here is to distill the salient points down to the fewest words possible to help make your due diligence task somewhat less…well…tasking. [Let’s go!] Words: 650 has joined to provide you with individual company research articles and specific stock recommendations in addition to munKNEE’s more general informative articles on the economy, the markets, and gold, silver and cannabis investing.
Check out eResearch. If you like what you see then…

Share this article:


Do banks create money?

Matt Yglesias has a new Substack on money and banking, with the following title and subtitle:

How banks create money out of nothingThe Fed’s two missions…

Share this article:

Continue Reading
Precious Metals

A Visual Guide to Bond Market Dynamics

What factors impact the bond market? Here’s how current interest rates, bond returns, and market volatility compare in a historical context.
The post A…

Share this article:

Continue Reading
Precious Metals

Commercial Real Estate Faces Perfect Storm: The Demise Of Downtown Office Buildings

Commercial Real Estate Faces Perfect Storm: The Demise Of Downtown Office Buildings

Authored by Tom Czitron via The Epoch Times,

In the mid-1970s…

Share this article:

Continue Reading