Gold Coins vs. Gold Bars: What Investors Need to Know
In this brief blog I’ve set out some of the Pros and Cons of Gold Bars and Coins.
Everyone is different and so what my work for someone might not work for someone else.
There’s a good chance you end up with both. You could well have a few reasons why you want to have some gold bars (for example, I hold some in my pension) and others why you like to have gold coins (I like the fact that you can buy a gold coin for a few hundred pounds).
Anyway, take a look at this and work out what’s suitable for you!
Gold Bars
Pros
Lower premiums per ounce: Bars are usually closer to the spot price since minting and design costs are minimal. Larger bars (e.g., 1kg, 400oz) have the lowest premiums—generally, the more you buy, the lower the premium.
Efficient for large investments: Easier to accumulate and store substantial amounts of gold in fewer units (though speak with your dealer about the best format for your needs).
Wide availability: Produced by many refiners and mints worldwide.
Highly liquid when stored professionally: Dealers often buy back bars, with proceeds being put back in your account within days if stored and insured with them. If you store it with them they have no questions to ask about its authenticity. It can obviously cost money to prove that it’s real gold!
Pension suitability: Certain bars may qualify for pension investments, potentially avoiding capital gains tax (CGT) if held in a pension wrapper (seek professional advice).
Cons
Less liquid in large formats: Selling part of a 1kg bar isn’t possible—you must sell the entire piece. If you only need to raise a few thousand pounds, coins may be more practical.
Verification challenges: While both bars and coins can be counterfeited, larger bars carry higher financial risk if fake. Due diligence on your dealer is essential.
No collectible value: Bars reflect only their gold content. Unlike rare coins, there’s no numismatic premium.
Gold Coins
Pros
Easier to buy and sell: Coins come in smaller units (1oz, ½oz, ¼oz), making them highly liquid and appealing to a broader market. Popular options (e.g., Krugerrand, Maple Leaf, American Eagle) are globally recognized.
More suited to smaller budgets: If you’re new to the market and want to have a relatively small exposure to gold (say less than £5,000), you can buy several coins over a period of time. A bar is likely to be more expensive because they tend to be larger.
Government-backed: Legal tender status adds trust and authenticity.
Potential collectibility: Some coins may gain additional value from rarity or demand beyond gold weight.
Possible CGT exemption: In certain jurisdictions, some coins (like UK Sovereigns and Britannias) are exempt from capital gains tax—check with a qualified adviser.
Resale: Whereas bars tend to very valuable and therefore more suited to be sold to a bullion dealer who has the right equipment to check their authenticity. Coins are generally in smaller denominations and therefore you may find it easier to sell them to dealers, private collectors or investors.
Inheritance: Although a lot depends on what you’re planning to do, because coins tend to be in smaller denominations, it may be easier to allocate them to more people.
Size: As coins are obviously smaller than bars, they are easier to transport and can be converted into jewellry.
Cons
Higher premiums: Extra costs for design, minting, and legal tender status. Premiums often run 5–15%+ above spot, compared to 1–3% for bars.
Less efficient for large sums: If investing six figures or more, coins mean more units to store, transport, and insure.
Gold Coins vs. Bars: Bottom line
It’s difficult to provide any definitive guidance because so much depends on so many things, but as a VERY general rule.
Choose bars if you want the lowest cost per ounce and are investing larger sums (I’d say over £100,000), especially if your investing over the long-term and you’ve got no plans to sell in the next few years. I think they’re particularly useful if you’re buying in a pension.
Choose coins if you want liquidity, smaller units (some coins are less than £300) for flexibility, or potential collectible benefits.
In both cases you should speak with a financial adviser about what might be suitable for you.
Building the Right Gold Portfolio for You
At the end of the day, both gold coins and gold bars have a place in a well-built portfolio. Coins offer flexibility and easier resale, while bars provide efficiency and value for larger investments. The “better” option really depends on your goals, budget, and how you plan to use your gold in the long run.
If you’re serious about protecting your wealth with precious metals, the smartest move isn’t just choosing between coins and bars, it’s building a portfolio that balances both. That’s exactly what the Gold Program was designed to help you do. You’ll get expert guidance, proven strategies, and a clear framework for creating a gold portfolio that fits your unique needs.
Ready to take the next step? Join the Gold Program today and let’s get started!
