When it comes to investing in gold bullion, one of the first choices you will face is what kind of product you want to buy. So, we’ve decided to discuss the different types of gold bullion in this post.
Firstly, Which Precious Metal Should You Buy – Gold, Silver, Platinum?
The first decision to make is which precious metal you want to buy. Here’s a quick overview of the metals available at dealers such as citygoldbullion.com.au:
- Gold – Gold is the most popular and often considered as the safest store of wealth. While it does have limited industrial use, it is the strongest in terms of global monetary assets.
- Silver – Silver is just as popular as gold but is also used for industrial purposes.
- Platinum – Platinum is similar to silver in the sense that it’s used industrially, particularly in the automobile industry.
Should You Invest in Coins, Cast or Minted Bars?
When it comes to bullion, there are three main choices – cast bars, minted bars and gold bullion coins.
- Gold cast bars – When gold is melted and formed into bullion, casting or pouring refers to where the bullion is formed when the molten metal is poured into a mould. The bar is usually a lower finish to a minted bar and slightly more rounded. Marks of weight, brand and purity are stamped onto the bars when they are almost cool.
- Minted bullion bars – Minted bullion occurred when the bullion is mixed with high pressure dies to produce a high quality, identical finish to the gold cast bullion. You can also get minted bullion coins and come individually packed in a plastic case.
- Coins – These are minted bullion in round form. The coins typically have a legal tender and a face value that is stamped on the coin.
Which is the Right Kind of Bullion for You?
Which type of bullion you should purchase is a personal choice and depends on what you want to use the bullion for.
Cast gold is usually cheaper to buy and has identical weight and purity. Extruded gold bars also stack easier when poured. The bars are perfect for investors who want to purely buy for investment purposes and aren’t too worried about the appearance of the bars or even the international tradability.
On the other hand, minted bullion tends to be more expensive and is produced in special refineries. If appearance is an important factor for you, these are the more attractive bars that come in protective sleeves.
Overall, coins are the most expensive but offer the most flexibility in terms of being recognized by dealers around the world. They also have a face value that could be beneficial for import limits or tax purposes if you plan on taking them overseas. Some coins even come in limited runs and may be considered collectibles.
One thing to consider when it comes to coins is that they are considered collectible and should be stored independently and insured. Many independent vaulting facilities will automatically insure your investments.