Gold Bullion Bars vs. Coins

Bullion investments can pay off with large returns. However, there are several advantages and some disadvantages to investing in gold bullion bars as opposed to their counterparts in coins. Here are a few of them:

Bullion bars have lower premiums than coins. In other words, a lower value is paid over their normal value, making them liquid and divisible. This also means that the market for bullion bars spans the globe.

Gold bullion bars also have high liquidity. Unlike stocks which can eventually reach a ceiling value, gold bars will almost always increase in value with time as the global supply of gold is depleted. Investing in bullion bars, as opposed to coins, can result in higher returns on investment if the seller waits long enough.  Even during times of economic uncertainty, the value of gold has remained stable throughout history.

One of the disadvantages of bullion bars is that they can take some time to acquire. Buyers typically wait two weeks to a couple of months to receive their purchased bars. However, since it isn’t wise to sell right away, most investors or purchasers wait for a certain period for the market price to rise before re-selling the gold bars.

Among the potential disadvantages of investing in gold are the shipping and storage cost of gold bullion bars. Shipping and storage are based on the rule of bulk buying – the more you buy the cheaper the cost often is. Thus, buyers often opt to invest in a larger number of bars, to make it worth the shipment.

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Gainesville Coins offers an extensive inventory of gold bullion bars, coins and other collectible items. They are a PCGS (Professional Coin Grading Service) dealer and a member of the ANA (American Numismatic Association). To shop for rare collectibles and precious metal investments conveniently online, visit http://www.gainesvillecoins.com or call 813-482-9300.