Important rules for buying gold coins and gold bars

Important rules when buying gold bars and gold coins

Gold coins and gold bars are a very good and safe way to protect your capital from a financial crisis. Nevertheless, when buying should follow some rules. One of them says that when you buy gold, you should immediately think about selling it later.

Rules to follow when buying gold coins or gold bars

Buying physical gold in the form of gold coins and gold bars makes sense to protect your savings from the risks of today’s financial system and thus preserve the purchasing power of your money/assets in the long term. However, to invest in gold properly, you should follow some important rules. For example, you want to buy a 1 kg gold bar. Is this a good idea or a not so good idea? When making such a purchase, you should remember that sooner or later the moment may come when you will need a certain amount of money (even possibly need it at short notice). Theoretically, you would like to sell part of the gold bar, but in this case it is impossible. Because you can hardly just cut off a tenth or less/more.

The solution to this problem is to buy smaller amounts of gold that you can resell quickly and gradually to get money for your daily needs when you urgently need it. It makes sense to buy enough gold so that when you sell it, you have enough money to last a week or two of your life and can sell as many times as you want.

Gold price per gram

If you are familiar with gold, you probably know that the smaller the amount of gold purchased, the higher the price per 1 gram. This means that the larger the gold coin, the cheaper it is per gram compared to smaller coins, such as: ½ ounce, ¼ ounce, 1/10 ounce and so on. It is best to buy a mix of different types/sizes of gold bars or gold coins. Sounds in theory that the cheapest way to buy a gold coin of 5 ounces. The problem with this is that you probably won’t be able to sell them quickly in a critical situation.

Since gold is considered “crisis money” by investors, it is important to own small bars and coins. They could be needed in the event of a collapse of the current financial system. In this case, the value of gold will skyrocket.

What gold coins to buy as an investment

Experts recommend to regularly buy modern 1/10 oz gold coins (Krugerrand, Maple Leaf, Filarmoniker, China Panda, Britania, American Eagle, ). These coins are very liquid and in demand all over the world, so you can easily sell them no matter where you are in the world.

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Parameters influencing the price of gold coins/gold bars

There are a number of specifics to consider when pricing gold bars and gold coins:

1) Whether the seller professionally deals with gold coins or gold bars. If this activity is only one of many services, you will probably face higher prices when buying and very low prices when selling, small inventories and not always professional staff.

2) For coins, it is best to invest at least part of your collection in gold bullion coins, which are specifically designed for investment and trade at a very low premium to the price of gold. These coins include Krugerrand from South Africa, Kangaroo from Australia, Philharmonic from Austria, Maple Leaf from Canada, Panda from China, American Eagle and Buffalo from the UK.

3) Storage of gold coins and gold bars. When buying, look for the absence of scratches, dents and other defects in the object of purchase. Gold is a very soft and malleable metal, so you should store gold coins and bars very carefully. It is strongly discouraged to handle coins and bars with bare hands; use special gloves. Remember that a scratched coin or bar basically loses value. This is definitely true for all proof gold coins!

4) The weight of the bar or gold coin to be purchased. In the market, the rule of thumb is that the higher the weight, the cheaper the price per gram. But there is also a flip side of the coin, as it was mentioned above: The higher the weight, the harder it is to sell a gold coin or bar.

Where should I store my gold?

Whether it is gold coins or gold bars, you should not necessarily keep your gold at home. Unless you can be sure that their gold is really safely stored. A professional home safe offers this possibility. For larger amounts of gold, it is advisable to store the precious metal in a safe deposit box.

How should I store my gold?

If the coin was sold in a capsule, it is wisest to leave it in its original packaging. This is especially true for proof gold coins. If for some reason a coin is not in its original packaging, it can be purchased at a relatively low price.

Where you can buy physical gold

You can buy gold bars or gold coins from a bank, from a dealer, from a private person.

Bank: Not every bank sells gold bars and gold coins. If you have decided to buy gold in the form of bullion coins or bars, call the hotline of the desired bank in advance and find out whether it has such offers and then they are in stock.

Specialized dealers: these usually sell valuable coins, but can also sell gold bars of different weights. If you don’t know a precious metal dealer yourself, sites like or have a selection of reputable dealers that you can also contact.

Private seller: It is possible to sell and buy gold bars or gold coins from private, but such transactions are associated with high risks. It is impossible to judge the authenticity without special equipment and knowledge, and therefore you may buy a fake or damaged piece, which will be difficult or impossible to sell in the future. However, the price can be (significantly) lower with private sellers than with official dealers and banks.

Gold bars versus gold coins – which is best to buy?

When considering investing in gold, the potential investor assumes a benefit. The quality of the investment and future returns depend directly on the form of investment, so it is worth considering whether gold bars or coins are preferable for safeguarding funds.

Investing in gold bullion is very convenient, especially for large investors, but they also have some problems when selling. The need to utilize the entire bar when a small portion needs to be sold is one of the disadvantages of such an investment, which we have already addressed. Thousands of interested parties are trying to buy gold as cheaply as possible. And they have such an opportunity when the seller is forced to give a large bar at a low price.

Buying gold bullion coins can help hedge against an unenviable situation. Basically, a coin is the same as a gold bar, only cylindrical in shape and light in weight. The value lies in the metal from which it was minted.

Gold coins are significantly less counterfeited than gold bars. In any case, please be careful where and from whom you buy the coins. Special caution should be exercised when making private purchases from strangers on the Internet. Keep in mind that many scammers are out and about and prefer to buy from a precious metal dealer.

The demand for gold coins is statistically an order of magnitude higher than for bars.

Another important and interesting fact at this point: In Germany, the purchase of investment gold is exempt from VAT. Investment gold includes gold bars and typical investment coins, such as the Krugerrand, the Maple Leaf, the Vienna Philharmonic, etc.

Do you have any other questions? Then please feel free to contact us at any time.

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