You already recognize the important role gold can play in strengthening your portfolio and protecting your wealth. After all, gold “generated better returns in 2016 than 10-year Treasuries and the U.S. dollar, which performed half as well,” acknowledges Frank Holmes, CEO of U.S. Global Investors.
But have you ever wondered about different forms of gold? There are a variety of well-known certified coins and bullion coins to choose from, but gold bars are also an option that could help you reach your financial goals. While bars are often overshadowed by their more familiar coin counterparts, there are several reasons to consider incorporating gold bars into your precious metals portfolio. Read on to learn more about the unique benefits of buying gold bars and gold coins.
Advantages of Buying Gold Bars
Bars are rectangular slabs of .999 pure gold and are produced in sizes ranging from 1 oz. to 1 kilo, with many sizes in between. Like coins, gold bars are portable, private, and liquid, though their advantages are often less understood than gold coins.
Fast, High-Volume Diversification
Gold bars are ideal for high-volume gold diversification. Due to their size and simplicity, gold bars are one of the fastest ways you can build your precious metals portfolio, essentially in as little time as it takes to process your payment and ship your order. When time is of the essence, buying gold bars can be your fastest route to large-scale gold ownership.
More Ounces, For Less
If you're looking to buy physical gold at the lowest price per ounce, gold bars could be a great option, as you can generally purchase more ounces of gold for less than if you bought the same amount of gold as individual coins.
For example, a 10 oz. gold bar could cost you about $12,729, while ten, 1 oz. Gold American Eagle coins could cost about $13,000 (as of March 6, 2017). That's a savings of almost $300, savings that could be used to further diversify your portfolio with various 1/10 oz. gold coins or a dozen 1 oz. Silver American Eagle coins. Why the cost difference? This leads us to our next benefit…
Lower Average Premium
In general, premiums on gold bars tend to be lower than for gold coins of the same weight and fineness. Why? It all boils down to production costs. Gold coins can be more expensive to produce than gold bars due to their intricate design, emphasis on condition and appearance, and thus greater labor and machining costs. Plus, the price of a gold bar is primarily based on its weight. With some gold coins, like certified coins, the rarity and grade of the coin are also considered in the final price, so gold content isn't the only factor influencing how much the coin will cost you in the end.
The compact size, durability, and portability of gold bars allow for a variety of easy storage options. Gold bars can be stacked or stored side by side, with or without protective packaging. A gold bar can also take up less space than the same number of ounces in coins, depending on the type of coin and your storage method.
Most gold bars are available from trusted government and private minting institutions alike, including from the internationally renowned Perth Mint in Australia, Johnson Matthew, and Royal Canadian Mint. The United States Mint, however, does not produce gold bars. Even though many gold bars are not government-issued, high-quality bars still come with added assurances like a well-recognized hallmark from the bar's manufacturer and a stamp that includes the bar's weight, purity, refiner, and registration number.
Easy to Buy & Sell
Gold bars are just plain gold, pure and simple. Because of this, they're one of the easiest forms of the precious metal to understand. For the most part, there are no intricate designs or special finishes that must be preserved to near-perfection, and a bar typically doesn't have historical significance that's limited to one culture or country. Given this simplicity, gold bars can be easy to buy and sell, as they're accessible and appealing to a variety of buyers—both commercial, private, domestic, or international.
Take the next step towards gold ownership and a stronger financial future by signing up for U.S. Money Reserve's free Gold Information Kit, including special offers, diversification strategies, and a precious metals guidebook. Sign up now to access this one-of-a-kind, expertly prepared tool!
Advantages of Buying Gold Coins
When it comes to precious metals, coins are one of the more widely known forms of gold ownership. Ever since King Croesus of Lydia ordered the first gold coin to be struck around 550 BC, civilizations around the world have been fascinated by the allure of gold coins, an allure that remains strong today.
Size, finish, design, price, grade, rarity, origin—your options are nearly endless when it comes to gold coins. Choose from gold bullion coins, proof coins, or collectibles depending on your individual goals, budget, and personal preference.
Some gold coins are minted by sovereign governments who guarantee each coin’s gold content, weight, and purity. Designs are approved by a legislative body and advisory committee, ensuring consistency and design integrity.
Gold coins offer flexibility given the wide range of prices, designs, and sizes. You can buy and sell both small and large amounts, spreading your activity over longer periods of time to take advantage of different gold prices.
Unlike bars, some gold coins have numismatic potential. This means that in addition to their intrinsic metal value, they also have a proven high rate of appreciation based on their rarity, condition, and demand. Like art, their “worth” includes historic and aesthetic appeal.
Gold coins can also make great gifts, as they're often stamped with a date and can be given to commemorate important events such as birthdays, anniversaries, weddings, etc. A coin's design, too, can also hold special meaning to both the giver and the recipient, meaning that goes far beyond the coin's monetary appeal.
Bars or coins, peace of mind is worth its weight in gold
Global gold output has been contracting since 2013, writes Business Insider, a phenomenon that's reflected in shrinking gold mining reserves and fewer new mine projects and expansions. With the amount of gold dwindling each year, owning some gold may be better than owning no gold.
Together, gold bars and gold coins can work side-by-side to fortify your precious metals portfolio against life's many uncertainties and bring you peace of mind. Think of it like making sure your home’s doors and windows are locked. Checking one is great. Checking both is better.
To learn more about gold ownership and explore your options, call 1-844-307-1589 to speak with an experienced Account Executive. We specialize in educating clients not only on the precious metals industry, but also on the various forms of gold that are available for purchase.