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investing in gold
Gold Bars Vs Gold Coins
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Gold Bars Vs Gold Coins

When it comes to investing in gold, the debate continues on whether to invest in gold bars or gold coins. There are many factors involved, but the bottom line is that no matter what, gold will always be valuable. While it is risky to buy and sell gold for profit, investing long term has always been relatively safe. As long as the investor is informed, investing in gold bars or gold coins will always be a safe investment.

Gold Bars

Gold bars have been around for a long time, and are available either cast or minted. Cast gold bars are made by pouring molten gold into a mold, then allowed to cool. Markings such as weight, purity, serial numbers and refinery stamps are then hammered or stamped onto each individual gold bar. Minted gold bars are made from sheets of gold. Each sheet is rolled until a certain thickness is achieved. The sheets are then either mechanically or manually punched to create slugs which will become gold bars. Each slug is put though a press which stamps logos, weight, purity and serial numbers on them.

While some minted gold bars, such as those made by PAMP or Produits Artistiques Métaux Précieux (artistic precious metals products) can be considered collectible due to low minting numbers or just due to their beauty, gold bars are generally bought and sold according to gold spot price.

Gold Coins

Gold coins are made in much the same way as minted gold bars. Sheets of gold are punched out, then the slugs are pressed with images on both sides. Buying and selling gold coins tend to be based on numismatic info, which can make a one ounce gold coin considerably more expensive than a one ounce gold bar. This is where prices can vary widely. For instance, you can find a one ounce gold coin at one dealer for one price, then at another dealer for 30% to 70% more. The bottom line is, people are going to pay whatever they want when it comes to coins. They are valuable, and will always be collected. Just make sure you buy them at the right price.

Conclusion

Recently, a large company that sells gold came under fire after being accused of convincing people who wanted to buy gold bars to buy the much more expensive gold coins. It is the old bait-and-switch scheme. There are people who bring up the executive order of 1933 which required all persons to turn in their gold to the U.S. government or face a $10,00 fine or 10 years in prison . They claim that coins are "safe" and gold bars can be taken away by the government. In truth, no fines were levied and no one went to jail. Not to mention the fact the the US government has in reserves about 8100 metric tons of gold. Investing in gold is the way to go, whether you are buying gold bars or gold coins.


Street Talk

I think an oz. of gold cost about $1,000 I've been wanting to buy 1 for years now. Think I'll go with the bars

Reply
  about 1 decade ago
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