Every person involved in the investing business understands the importance of gold. It is one of the most wanted metals for investment, if not the most wanted.
It comes in many different shapes and qualities. The best, 24K consists of 99,99% of the metal which means it’s pure perfection. The 22k is made of 91,67% of the metal and the rest is made of something else.
When it comes to the shape, you can find it as jewelry in the form of necklaces, rings, earrings, and similar. However, investors prefer something else because it’s easier to store and keep it. That’s why almost all of them prefer one of the most asked options – bars and bullions.
What are the gold bars?
The bars are made in different shapes where the ingot is the most common. An ingot is a 24k piece which is made for investment purposes. The central banks of the countries almost always keep their treasure in this form. The standard piece weights a kilo, or 32.15 troy ounces.
The price of gold bars for sale is usually a little lower than the one of the bullion. The reason for this is because the weight of the ingot is huge compared to the standard size of the bullion. Another reason is that they rarely carry official mint stamps and people usually like to know who’s behind the item they are buying or selling. It gives them some kind of background and warranty of the product. It proves about the certainty of the material.
The ingot is made of 99.995% purity and when you have a stamp or an official proof of this, it’s kinda easier to accept the fact that no one is trying to trick you. Since a kilo today worth around $46.500, we’d say that asking for all the proof on earth is logical.
What is bullion?
Gold bullion or a coin is a product of the world’s countries’ government mints. They are made for collector’s needs and people often buy them as an investment choice.
The main difference is in terms of quality. Unlike the ingot, the coins can be made of different amount of gold inside. So you can get a 24k, 22k, 18k, and so on. On top of this, the coins have their own mint stamp that proves when and where were they minted.
Although the price of the bullion is slightly higher than the one of the bars, the value of it is still bigger because of the numismatic importance of each piece. The rarity, the date minted, and the amount of the precious metal inserted inside can make some of the coins almost priceless.
Now, there’s a difference between the coins dating 100 years ago or older and the bullions made today. Technically, bullion is a piece made for collector’s use and investors. Learn more about bullion here.
Which one is better?
There’s no clear answer about which of the two is better. It depends on what your needs and options are. Are you buying them because you want to protect your investment? Are you doing it as a way to leave something for your children? Are you doing it because you love the idea of collecting historical valuables?
If you have a lot of money that you need to be transferred from a currency into gold then it’s better to get bars. They are easy to store and transport in large quantities and the price for getting them is better than the other option.
If you’re looking for a small investment or something to leave for the kids, it’s better to get coins as they are small and convenient and they look good. You can put them in a special place in the living room and make it look good.
Conclusion
As you can see, there’s no one answer on the question which one is better. Depending on your needs you’ll have to decide what option you like more. One thing is for sure, the price of this precious metal will always high enough to be relaxed that you won’t lose anything. If the price goes up, you can only earn more money.