Why were coins better than the gold bars?

Gold coins have a high traditional value. Gold ingots have little historical or traditional value and are traded exclusively for their gold content. In general, premiums for gold ingots tend to be lower than those of gold coins of the same weight and fineness. Why? It all comes down to production costs.

Gold coins can be more expensive to produce than gold ingots because of their intricate design, the emphasis on condition and appearance, and therefore the higher labor and machining costs. In addition, the price of a gold ingot is mainly based on its weight. In the case of some gold coins, such as certified coins, the rarity and grade of the coin are also taken into account in the final price, so the gold content is not the only factor that influences the final price of the coin. Gold ingots tend to be cheaper to manufacture compared to gold ingot coins.

Therefore, they have a lower premium compared to gold ingot coins. The larger the gold ingot, the lower your premium. A one-kilo gold ingot will have a lower manufacturing cost than 10 100-gram gold ingots. This is where it gets interesting.

Not all gold coins and gold ingots are the same. There are a lot of factors to consider, such as the premium you pay. Gold coins tend to have a higher premium per ounce compared to gold ingots. Gold coins are legal tender and are minted by a sovereign government mint, while gold ingots, for example, are minted by a private mint.

Sales tax is another factor to consider when some states tax one or the other and sometimes both. Assuming they have the same gold content, you're more likely to get a higher price for a gold coin. The value of a gold ingot depends solely on its gold content, while the price you pay for a gold coin will reflect both its gold content and its potential collectible value. Basically, this is a misunderstanding of what gold ingots are.

The common perception is that rectangular gold ingots (“ingots”) are the most cost-effective, and perhaps the only available, form of gold ingots. The same idea holds that round pieces of gold (“coins”) aren't really gold ingots. There is a misperception that “coins have a limited supply, are expensive and, perhaps, to a certain extent, are collector's items. Whether you decide to buy gold coins or you decide to buy gold ingots, you'll appreciate the protection and peace of mind you'll get instantly once you take possession of it.

Gold bars have their weight stamped on them, and you can find out the current price of gold at any time. However, this benefit starts to diminish if you buy several smaller gold ingots, such as several 1 g or 5 g ingots, to benefit from greater flexibility in your investment in gold. If you plan to hold physical gold for a long period of time with no intention of selling part of your investment over time, gold ingots will be the best option for you. For example, if you want to raise funds quickly when gold prices are relatively low, you could sell just enough of your small gold ingots to get the cash you want and keep the rest until the market recovers.

Or if gold prices drop slightly when you want to sell, you have the flexibility to sell just some of your 1 kg gold ingots and keep the rest until the market improves. Some gold coins are minted by sovereign governments that guarantee the gold content, weight and purity of each coin. Small gold ingots (1 g or more) and gold coins are equally easy to store in terms of size and can be distributed in different locations to increase security. Rather than buying just one 1 kg ingot and simply selling only when gold prices rise (or, on the contrary, lose value with investment), it would be better to invest in multiples of more affordable gold ingots.

Ever since King Croesus of Lydia ordered the first gold coin to be minted around 550 BC. C., civilizations around the world have been fascinated by the appeal of gold coins, an attraction that is still strong today. .