Coins VS bars. Which one should you choose?

At The Silver Mountain, you can choose from a wide range of coins or bars. However, choosing a coin or bar depends on several things. For example, the cheapest price per gram is not always a decisive factor.
 

Premiums and production costs

The prices of the products on our website are always based on the most current silver and gold prices. Because a physical product is involved, you pay more than just the spot price. For example, there are costs incurred to produce the coin or bar, insured shipping and the profit margin of the coin house and the selling party. The profit margin for precious metal dealers and smelters fluctuates, depending on the type of product, between 1 and 5% for gold and 3 to 7% for silver.
 
The price structure of silver coins or bars and gold coins or bars consists of the following elements: the intrinsic value of the gold or silver (the current gold or silver price), the production costs (the cost of producing a coin or bar), the merchant's profit margin and (in the case of silver bars) 21% VAT.
 

Should I buy silver coins or silver bars?

In the picture above you can see that silver bars are taxed with 21% VAT. For this reason, silver bars are often not an interesting choice for individuals, because you can not reclaim this VAT and also not get it back in a possible sale. Silver coins, on the other hand, are more attractive for private individuals, because they are traded under the margin scheme. This means that VAT is calculated on the profit margin of the coin (or the difference between our purchase and selling price) and not on the full price of the coin.
Buy silver coins
 
Silver is originally considered a commodity and for that reason the silver bars are taxed with 21% VAT. If you buy the silver as a commercial customer, you do have the option to reclaim the VAT. As a private person, you can choose to purchase VAT-free silver. Your silver is then stored in a secured customs depot.
VAT-free silver
 

Buy gold coins or gold bars?

Gold is always exempt from VAT. Both gold coins and gold bars can therefore be purchased at a small premium to the current rate. The larger the size of coin or bar, the lower the cost of production in proportion. The trade-off between coins and bars is primarily based on the desired size (smaller denominations are more marketable) and the available budget. The larger the budget, the more likely it is that gold bars of larger denominations will be of most interest.
 
Gold coins are commonly sold in the size of 1 troy ounce, or 31.103 grams. This is a common size and easily traded worldwide.
 
Buying gold coins
 
Gold bars are also readily marketable worldwide and, unlike coins, have a certificate of authenticity. Important to consider with gold bars is the size of your gold bar. Bars of larger denominations are not easy to divide, as you will need to sell the gold bar in its entirety in the future. In our experience, customers are more likely to choose 10 times a 100-gram gold bar than one gold bar of a kilo for this reason.
 
Gold coins are mostly sold in the size of 1 troy ounce, or 31.103 grams. This is a common size and easily traded worldwide.
Buy gold bars
 
Alternatively, The Silver Mountain sells gold CombiBars, which are gold bars in small denominations that are produced in a smart and inexpensive way. In fact, CombiBars can be broken down into smaller denominations of gold, offering you additional flexibility should you wish to trade or sell some in the future.
 

Wide variety

When it comes to coins, there is a very wide range available. We offer collector coins and investment coins. Collector coins often have an elaborate design, limited edition, different quality type and are often delivered in a presentation box along with the certificate of authenticity.
Assortment of collector coins
 
Investment coins often have a less elaborate design, but are traded purely for their gold or silver value. Various weights of both collector and investment coins are available. This ensures that there is something for everyone: in terms of design but also in terms of budget. Since coins are often of lower weight than bars, coins are more accessible to novice investors. Indeed, coins are already available with a modest budget.
 

Transport and storing it at home

Coins are easy to transport and store at home. This is because coins often involve lower weights. With bars, this is a different case. Bars are generally more expensive and therefore more precious. They are also available in larger weights. This might make it less attractive for you to transport or keep them at home. For both coins and bars, there is of course the option of having them stored. This way, your precious metal is safe and nothing can happen to it.
 
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.
The Silver Mountain was founded in 2008 by Rolf van Zanten. When we started, we had a clear goal in mind: to make buying physical silver and gold accessible, safe and transparent.
We are proud to say that we have grown into the Netherlands' largest and most reliable bullion dealer online. On the bullion market, we offer a full-service service for the purchase, sale and storage of your precious metals. This is also reflected in our reviews.