This is a question many new precious metals investors will ask. What is better to buy, bars or coins? I will try to keep this short and sweet, state some pros and cons of each, and then state my personal opinion.
Pros of buying coins:
-Coins are legal tender
-More collectible than bars
-The coin itself will slightly appreciate in value over the years (example a 2005 Silver Eagle is worth more than a 2017 one)
-Coins are easier to barter with during a crisis. The market is more liquid for coins
Cons of buying coins:
- They carry a higher premium over spot price than bars do. This is because they are legal tender, rarer, and more collectible
Pros of buying bars:
- They carry less of a premium over spot price, therefore they are cheaper.
-Easy to store/stack
Cons of buying bars:
-Not as collectible. Therefore, the only thing that will influence the price of the bar is the spot price of silver, not the collector value.
- Not as liquid/easily tradeable/ recognizable as coins. This is especially true if you have 1000 or 5000 ounce bars.
MY OPINION:
In my portfolio of precious metals I have mostly coins and some bars. I prefer coins over bars because if there is no economic meltdown any time soon, my coins will at least slightly increase in value over the years because they are more desirable. This is especially true for my Canadian .99999 gold elk coin and my Somalian elephants. But most of my portfolio is Canadian Maple Leafs and American Silver Eagles. And If there was ever an economic meltdown, I can count on my coins to be highly liquid and get me through any situation.
Bars are great too! I personally buy whatever is the best deal of the day, but I am more geared towards coins because I am a smaller investor.
Bars are especially great for big investors looking to get the lowest premium.
Thank you for your concise opinion. Great Read.
Coins are easier to spend. If you are thinking about apocalypse scenarios, pre 1945 dimes.
When the dollar collaspes soon, silver will skyrocket, coins will be easier to trade with and bars for long term me wealthy individual. Some are saying in the high thousands. Mybe 10k? In sept. Government will run out of money, world banks collapse. Plus jp morgan has 600 million oz. of physical silver and are into blockchain technology and do own bitcoin.
Got my info from Bix Weir
I think that you also have to factor in the tax angle here. In the UK all Gold is exempt from VAT (value added tax - like a sales tax) but only government issued bullion is capital gains free.
Silver is worse (in terms of being f-over by the gov)... bars are not CGT free (again only government issued bullion coins) and all is subject to VAT..basically adding a further 20% onto the price.
So if in UK I'd say make sure you buy UK mint coins as CGT free. Also, I like that they are more more portable and easier to sell in smaller amounts....(if you wanted to sell a bar there may not be as many buyers for them)
I agree with you 100%
I think Maples and Eagles are the way to go, whether in gold or silver. Just hope that the powers that be don't decide to do a collection like they did back in 1933. You never know, they'll probably get pretty desperate if things start going badly for them, and desperate people do desperate things.