Should I Buy Gold Coins or Bars?
Whilst essentially a personal preference, there are certain established advantages of coins vs. bars, and vice versa. Whilst the significantly larger size of Gold Bullion bars makes them a superior choice for holding large quantities of gold, Gold Bullion coins remain by far a more popular option for individual investors.
Not only does the small size of coins allow for greater flexibility in terms of acquisition, holding coins also makes it far easier to liquidate your investment, in whole or in part.
On the other hand, while bars can be purchased at a lower premium than coins, they often also have lower selling premiums, which can significantly cut into your profit margin, as and when you choose to liquidate your investment.
Furthermore, unlike gold bars, the price of gold coins is impacted in part by considerations of collectability, either due to aesthetic, historic, or sentimental value. As a result, coins offer investors the opportunity for returns on two fronts: the increase in the price of gold, and an increase on the premium of the collectible.
Gold coins designated as legal tender also carry the additional tax benefit of being exempt from CGT.
Are Bullion Products Vat-Free?
Since 1st January 2000, all investment grade gold is VAT exempt across the EU, as per notice 201/21a, the full details of which are available on HMRC’s website. Certain Gold Bullion and numismatic coins are also exempt from CGT.