Buying Gold Silver Guide – Bars or Coins?

Many new stackers would ask, be it Gold or Silver,…

Do I stack in coins or do I stack in bars?

Coins

Funnel web spider silver coin 1 oz
Funnel web spider silver coin 1 oz

Coins generally are a favourite among collectors. They comes in different size, from 0.10, 0.25. 0.5, 1, 2 ounces for gold coins, and more common of 1, 2, 5 ounce for silver coins (silver has a wider range from 0.5 ounce to also 1kg or 10kg silver coin, but less commonly bought)

Coins are easy to stack, since you can stack a brunch of them in easily available tubes. And as we use coins in our everyday currency, coins gain legitimacy and recognition easily.

As most coins are in the common 1 oz size, it is also fairly standardised and easy to compare in value.

And there are many different designs and branding available on coins, such that certain coins’ design attracts a fatter premium. These wide range of designs available on coins allow collectors to diversify and beautify their collections, crossing their investment portfolio as an interesting hobby as well.

The biggest disadvantage of silver coins is that minted coins are prone to milkspots. These are white spots on silver bars or coins, even when you bought it fresh from the mint. Royal Canadian coins are notorious for milkspots on their coins, and generally, collectors have learnt to live with it. Do note that there are ways to remove milkspots, but most investors would not do that as it may reduce the value of the coin. Silver coins also may get “toning”, getting blackish and brown over the years due to discolouration from the oxidation.

Coins also have a bit more premium than bars. Generally you are paying for the melt-value of the metal (the spot price of the precious metals) and the brand / design of the coin. In this aspect, coins has a bit more premium that you have to pay for compared to bars.

On another note, precious metals in round shaped are only classified as “coins” if they are minted by public / government mints and declared as “legal tender”. If they are minted by private mint, they do not have legal tender, and the more correct name for them is “rounds”.

Bars

 

PAMP Suisse 100g Minted Gold Bar
PAMP Suisse 100g Minted Gold Bar

Gold bars and silver bars are common for investors to buy and stack, as they are easy to stack especially in larger volumes. The bars can come in as small as 5g or 1g for gold, and more commonly in larger sizes for stackers, such as 100g bars or 1 kilo bars for gold, or 100 oz, 1 kilo, 5 kilo etc for silver bars.

Silver bars of any size are an excellent way to invest in pure Silver while avoiding the premiums usually found on legal tender bullion coins. They are easily bought and sold, stored, stacked and counted..

Minted bars may still face milkspots, though cast bars are generally more robust and less likely to have milkspot problems. Cast bars also provide a more industrial and raw feel and appeals to some collectors.

Bars has less designs compared to coins, and heavier bars are harder to liquidate due to the weight and large monetary value.

In summary

Coins- Pros

More similar to day-to-day currencies, more standardised.
Many designs available.

Coins- Cons

More premiums payable
Some coins are more prone to milkspots

Bars- Pros

Less premiums, and more large size available for stacking

Bars- Cons

Less designs. Larger bars slightly more difficult to liquidate.

Gold Silver City has categorised gold and silver into bars and coins for easier viewing. Check out Gold Bars or Gold Coins and of course, Silver Bars and Silver coins for different sorting. Hope that helps with your viewing pleasure!

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