It doesn't matter if you prefer gold coins or gold bars, every bullion investor will always buy gold above the spot price and this is what is known as a premium. Gold bars tend to be cheaper to manufacture compared to gold coins. Therefore, they have a smaller premium compared to gold bullion coins. The larger the gold bar, the smaller its premium.
A one-kilo gold bar will have a lower manufacturing cost than 10 x 100 gram gold bars. Gold is considered a reliable investment in all cases. Gold bars are especially so, since their value can be accurately determined by the live spot price. In terms of overall lower price, gold bars win, as they are usually a little less expensive than gold coins of similar weight.
Bullion coins, such as gold bald eagles, are the best type of precious metals for most investors. This is because sovereign currencies are easily recognizable, easy to trade, and typically sell at higher premiums than bars. You could buy smaller bars, such as a 1-ounce ingot, but they tend to be more difficult to sell and transaction costs are higher. This is where it gets interesting.
Not all gold coin and gold bullion products are created equal. There are many factors to consider, such as the premium you pay. Gold coins tend to have a higher premium per ounce compared to gold bars. Gold coins are legal tender and are minted by a sovereign government mint, while gold bars, for example, are minted by a private currency.
Sales tax is another factor to consider where some states will tax one or the other, and sometimes both. For large quantities of physical gold, bars are among the best investment vehicles. In general, these bars have a lower premium on the spot price of gold at the time of purchase. However, there may be bars and brands that have higher premiums depending on the scarcity and convenience of the bars.
Most governments don't offer bullion bars to the public, but there are many private mints that offer bars of different weights, such as grams, ounces and kilos. Bars are easy to trade or buy, but governments generally don't consider them legal tender.
