Investing in gold is surely a great positive way to secure your finance. In the precious metal market, you will get it in varied kinds like in bars, coins, scraps or as ornaments. If you are buying the lustrous yellow metal for investment purpose, then you must opt for either bar or coins. Thus, before you finalize the deal, it is best to know the form of gold more favorable.
Know the difference:
Gold bars: They are larger in size compared to coins. Best for high investment purpose as it is available in even large weighing quantity.
- You can pay the lowest premium over spot price. As the bars comes directly minted from the company, the spot price is less, thus your investment will be lower.
- Most bars are totally of pure quality. Bars are mainly bought by jewel makers and investors for its guarantee of being totally pure.
- Easy to store as can be stacked over one another. For storing purposes, you can stack the bars easily without spoiling its surface.
Draw back points:
- You need lot of capital to own bars.
- It can’t be that easily liquidized as you will find fewer buyers.
- Small weighed gold bars are costlier compared to large ones as the refiner has to process the small weigh bar in a different way.
Gold coins: Most of the gold coins are highly preferable for gifting purpose as it looks elegant and shining, thus it is best to present to the person you love or respect. The coins are available in all leading gold traders’ shop and jewelry shops. It has a face value stamped on it along with its purity percentage and year of minting.
Benefits to consider:
- You can choose the design, size from the options available in the stores.
- For investing it is available in low weights as well. Thus, don’t need to invest a lot.
- Some coins woo coin collectors as they are stamped with unique images, thus will gain more when sold back.
- They can be stored even in small secured area.
Non benefiting points:
- The purity may be less. You may even get it in 22 carats are lesser than that purity mark.
- Most of the gold coin sellers don’t give authenticity document to prove the gold purity.
After knowing the difference between the two you can buy gold for investing purpose as preferable to your budget.