That’s a reasonable question.
All other things being equal, you should buy gold bars. In other words, if you are thinking about buying a one ounce gold coin, buy a one ounce gold bar instead.
Why? Because you’ll pay less for it.
For some reason, the minting cost for bars seem to be less than it is for coins. Or maybe a premium is added, simply because the coins are more decorative and attractive.
And that’s ultimately why people buy the coins – they look nice. It’s just a sentimental choice. Or perhaps they have a higher perceived value.
But in terms of the value of the gold, there is no difference between the coin and the bar.
So why pay more – typically in the region of $50 more – for one ounce of gold in the form of a coin?
If you are buying gold simply as a store of wealth, and plan to store it at home or in a bank, it doesn’t really matter what form the gold is in. It’s not like you are going to display it, or even look at it each day.
For most of us, we store and hide our gold, in one place or another.
Why pay more for something that looks prettier, if you are not even going to be looking at it?