Investing in physical gold to protect your wealth can be done roughly in two ways. You can choose to invest in gold bars or in gold coins or a combination of both. There are plenty of popular and well-known coins and investing in gold bars also has its advantages. In this article, you will learn more about the various advantages of both investment products.

Benefits investing in gold bars 

Gold bars are minted in 99.99% pure gold and are produced in different weights. The Silver Mountain offers gold bars in different weights starting at 1 gram and going up to a maximum weight of 1 kilo. 
 

High volume

Gold bars have the advantage over gold coins that it is relatively easy to buy gold for a larger weight at once. This allows you to invest in gold for a larger weight faster.
 

Lower premium 

When comparing the cost of a certain weight of coins and bars, the same weight in gold bars may cost less than the weight in coins. The reason for this is that there is a lower premium on gold bars.This is because gold coins are more expensive to produce than gold bars because there is also a cost to realise the design on the coin. In addition, most coins are only minted in limited editions, making coin collectors willing to pay more for relatively rare coins.
 

Little chance of damage 

Due to the size of gold bars and their good quality, you do not have to worry about damaging the gold when storing gold bars. Gold bars do not need to be wrapped in protective material and can be easily stacked. 
 

Sourced from recognised producers 

Gold bars at The Silver Mountain come from recognised producers such as Umicore, Heraeus and Valcambi. Many of them provide a certificate of authenticity with the product that shows the gold content once again. This also guarantees the quality of the gold bars.
 

Easy to sell 

Because gold bars are simply worth their weight in gold, it is easy to ask for the right price when you might want to sell your gold bars again in the future. You do not have to worry that certain details in the design have been lost over the years or take historical relevance into account when you proceed to sell. 
 

Advantages investing in gold coins 

Since gold coins were first minted some 500 years before Christ, they have enjoyed unprecedented popularity. Even today, individuals often choose to buy gold coins when they want to invest in gold. The most popular and easily tradable coins are coins minted in 1 Troy ounce of pure gold. On top of the gold price, gold coins still carry a premium of around four or five per cent, depending on the type of coin and the quantity bought at one time. Lower-weight coins are often slightly more expensive. Gold coins not struck in pure gold are sometimes more difficult to trade.
 

Numerous options 

When you choose to purchase gold coins, you can choose from many different sizes, designs, gold content and quality levels. As a result, there is always a type of gold coin that suits one's needs and budget. Legal tender Today, gold coins are still often minted on behalf of various governments. Gold coins that therefore have legal tender status are guaranteed to be minted in a certain weight and gold content. 
 

Liquidity 

Investing in gold coins gives you the opportunity to get in with smaller amounts. In addition, gold coins also offer the flexibility to buy or sell gold in smaller or larger amounts over a longer period of time. This allows you to better respond to the current gold price. 
 

Collector's value

Unlike gold bars, some coins have a collector's value in addition to an intrinsic gold value. Due to their unique design, good condition or limited edition, a coin can become more valuable. 
 

Buy-back guarantee 

The Silver Mountain offers its customers a unique buy-back guarantee when purchasing gold coins. This ensures that you can sell your coins at 100% of the prevailing gold price. 
 

Gold bars or gold coins 

It is clear that investing in gold bars or gold coins has several advantages and disadvantages. When buying physical gold, it is good to remember that physical gold has proven to be a stable value investment over the centuries. This applies to both gold bars and gold coins. In case you are in doubt between the two products, it is always better to make a choice rather than no choice. After all, the world's gold supply is finite. Besides, it also never hurts to diversify your portfolio and invest in a combination of gold bars and gold coins. 
 
Disclaimer: The Silver Mountain does not provide investment advice and therefore this article should not be considered as such. Past results offer no guarantees for the future.