Physical investment gold: coins or bars - which is the right choice for the investor?
Gold has historically served as a safe haven in uncertain times. In Finland, interest in physical investment gold has grown, as it offers a tangible asset that retains its value even when markets fluctuate. There are several forms of physical gold investments, the most common being gold bars and coins. They do not compete with each other but complement one another, providing investors with different opportunities depending on their goals, budget, and investment horizon.
Gold bars - a cost-effective and clear solution
Gold bars are, for many investors, the basic solution. The advantage of bars is the small premium: they are sold closer to the world market price of gold than coins. This makes bars a cost-effective option, especially when the goal is to invest specifically in the value of gold.
The purity of bars is almost always 99.99%, and they are standardized (Good Delivery bars). Thanks to the certificates, bars are easily recognizable and tradable internationally. Bars come in various sizes, from gram bars to those weighing a kilogram.
It is often thought that investing in bars would mean purchases in the tens of thousands of euros. In reality, you can buy bars from Jalonom's online store for under 200 euros - physical gold is therefore a viable investment option for the average Finnish consumer..
Gold coins - history, collecting, and investing
Gold coins are widely recognized and are still minted in large quantities. History plays a significant role here: in the 1930s, the U.S. government confiscated gold bars from citizens, but certain gold coins were allowed to remain with their owners due to their numismatic value. This created a strong perception of coins as a safe form of gold, which is why they continue to be minted extensively.
Current investment coins, such as the Krugerrand, Maple Leaf, and Britannia, are standardized and internationally recognized products. They allow ownership of gold in smaller quantities, making them a practical option for diversifying investments.
The characteristics of coins can vary, and their premium is usually higher than that of bars. On the other hand, a coin brings more to the investment than just the value of gold: it carries history, visual appeal, and in some cases, collectible value. This makes them an attractive option for investors who appreciate tradition and a tangible, easily held investment product.
Resale and liquidity
Both bars and coins are internationally resalable. Standardized bars are easy to sell thanks to their certificates, while well-known investment coins are quickly recognized everywhere. Both products have good liquidity, and customers typically build their portfolios by combining bars and coins according to their own needs and investment goals.
Price factors
Bars: Smaller premium, cost-effective way to own gold.
Coins: Higher premium, but come with history and collectible value.
Summary
Gold bars and coins complement each other excellently. Bars provide a cost-effective and straightforward way to invest in physical gold, while coins offer flexibility, history, and visual appeal.
In Finland, both options are VAT-exempt investment products when they meet the standards defined by the EU. Often, the best solution is not to choose one over the other, but to combine bars and coins according to your investment plan..
Explore Jalonom's extensive selection of gold bars and coins in our online store and find a solution that suits your situation.
