If you’re looking to invest in gold, you’re stuck in the dilemma of whether you should own gold coins vs bars.
The short answer is that you should own both. Just as gold bullion is a diverse investment, it’s wise that you should diversify the type of bullion you own.
But how much of each type of bullion should you own?
This guide will show you the pros and cons of investing in gold coins vs bars. You can use this information to decide which option is best for your needs.
Why Choose Gold Coins
Gold coins are preferred by both new investors and seasoned investors. These are easy to hold and to carry. You can keep them in your home safe, in a private vault, or your pocket.
Gold coins are also more liquid. Because they are easy to transport, you can take a few gold coins with you wherever you go. In times of complete chaos, many survivalists grab their gold coins as a first resort.
Gold coins are valuable to both laymen and larger companies. If you wish to buy goods from your neighbors, they might be open to one or two gold coins. Gold coins have always been a famous currency throughout history.
The challenge of gold coins is that they are harder to manage. As you accumulate more coins, you might have to buy a larger safe. You might have to find private vaults to keep your gold coins. You have to always keep track of how many gold coins you have to make sure none get lost or stolen.
Why Choose Gold Bars
The value of a fiat currency rests on the printed numerical value. One $100 bill is worth more than 10 $1 bills because of the number printed on the $100 bill. But with gold, the value gets based on the ounces of gold.
If you have two gold coins that are each 1/10th of an ounce, they are not worth more than one gold coin that has one ounce of gold. As a result, your net worth in gold gets based on the weight you own.
The best way to accumulate weight is to invest in gold bars. If you wish to accumulate 100 ounces of gold, you can do so with 1 or 2 gold bars. This is more convenient than buying 100 gold coins!
The challenge of gold bars is that they are harder to transport. The average home safe can only hold a few gold bars. As these are very valuable, you might feel safer opting for a private vault. While gold bars can carry more weight, they are mostly desired by larger companies. They aren’t practical in a time of complete chaos as coins are.
Gold Coins vs Bars: The Verdict
The decision of how many gold coins vs bars you should own depend on different criteria. You have to consider your budget for storage and what’s convenient for storage.
You want to consider if you worry about the likelihood of a chaotic scenario. You want to consider whom to sell your gold to. Whatever you do, make sure that you have a bit of both with you at all times!
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