Precious metals vs. shares

Difference between investments in gold coins and shares

Investing in gold coins and stocks are two popular ways to build wealth. However, they differ significantly in terms of risk, potential returns, and other factors. In this blog, we will go over the key differences between gold coins and stocks.

The risk:

Gold coins are considered a safe haven, which means they are often considered a hedge against inflation or economic uncertainty. The value of gold increases in times of economic instability and is often considered a store of value. Therefore, investing in gold coins is considered less risky than investing in stocks.

An investment in stocks is inherently riskier than an investment in gold coins. The value of equities can be highly volatile and the price can fluctuate significantly due to market conditions, geopolitical events and other factors.

Potential return on investment:

Gold coins are usually considered a long-term investment and are not known to provide high short-term returns. However, over the long term, gold coins can increase in value and provide a hedge against inflation. In contrast, stocks are often considered a more lucrative investment because they can generate higher returns in a shorter period of time.


Liquidity refers to the ease with which an investment can be converted into cash. Gold coins are generally considered more liquid than stocks because they can be sold easily and quickly. It should be noted, however, that the value of gold coins can fluctuate depending on market conditions, which can affect the price you receive when you sell them. Stocks, on the other hand, can also be sold quickly, but the process can take longer than selling gold coins. In addition, the value of shares can fluctuate significantly, which can affect the amount of money you receive when you sell.


Diversification is an important investment strategy that involves investing in multiple asset classes to reduce risk. Investing in gold coins and stocks can provide diversification benefits because they are two different types of assets that are affected by different market conditions. However, diversification is more difficult to achieve with gold coins because they are a single asset. In contrast, investing in equities allows for diversification across different sectors, industries and regions, which can help reduce risk.


When you invest in investment gold coins, you may have to pay a premium over the price of gold to acquire them. In addition, there may be storage and insurance costs associated with buying physical gold. Investing in stocks, on the other hand, usually incurs lower transaction costs than investing in gold coins. However, you may have to pay fees to a broker or financial advisor if you need assistance with your investments.

Anonymity of business:

When it comes to buying assets like gold coins and stocks, anonymity can be an important consideration for many buyers. Let us first consider the purchase of gold coins. In general, buying gold coins can be a relatively private affair. Many dealers allow you to buy gold coins in person with cash, which can help keep your transaction untraceable.

It should be noted, however, that the degree of anonymity you can expect when buying gold coins may depend on where you live and the laws in your country. For example, in some countries, certain transactions may be reportable, which could limit your ability to buy gold coins anonymously.

Let us now consider the purchase of shares. Unlike buying gold coins, buying stocks usually requires you to open an account at a financial institution. This means that your purchase of shares is likely to be recorded and linked to your name and personal information. In addition, many brokerage firms are required by law to report certain transactions to regulators, which can make it difficult to buy stock anonymously.

If anonymity is important to you when buying assets, you should consider what level of privacy you can expect when buying gold coins versus stocks. While both types of purchases may be reportable, buying gold coins may offer more opportunities for anonymous transactions. However, it is important to be aware of the laws and regulations in your country and the risks associated with any type of investment.

In summary, investing in gold coins and stocks differs significantly in terms of risk, return potential, liquidity, diversification and cost. Gold coins are considered a safer, long-term investment that can provide a hedge against inflation, while stocks are considered a riskier, but potentially more lucrative investment that can generate higher returns in a shorter period of time. Ultimately, the decision to buy gold coins or stocks depends on your investment goals, risk tolerance and investment horizon.

Are you interested in investing your surplus savings in precious metals? At Rare Coin, we have a large selection of exceedingly rare coins from around the world. Feel free to browse through our online store.

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