Do you want to invest in buying precious metal? During this economic situation, when nothing is certain then investing on any precious metal like gold or silver can be a very smart decision. Money in the bank may not give you much returns like a precious metal.
Now the question is if you buy gold or silver then which form of this precious metal can offer you better advantage. You can either buy in the form of coin or bar. Let us therefore in this article focus on the pros and cons of both these options.
Option for coin
Coin has a legally accepted status and nobody will question about its purity as it is government approved mint. There will be special designs on both its sides and that may vary from year to year when you buy. Their purity as well as weight is inscribed on the coin. Let us look at the pros and cons of any gold coin.
- Pros of the coin
- It can be easily carried as compared to bar
- You can buy even any junk silver coin very close to the spot price
- It has got a status of any legal tender
- In times of any crisis like situation, you can easily barter your gold or silver coin as it is a liquid asset.
Usually when you buy in the form of coin then the premium is higher than its spot price
Options for bars
Buying gold bar can be a good option and can protect you financially in case you are in a crisis situation. It is produced by private mints in the form of thin and rectangular slabs. It can be easily stored in the locker. Since there is very low premium in gold bars and hence most of the large-scale investors prefer to invest their money in this form. Let us see few pros and cons of this option
- You can easily stack and transfer from any mints
- Very low premium for both gold and silver over spot price
- Any new investor can easily build their investment port folio
- Available in sealed and very attractively packaged form
- Supported by an additional certificate and also authenticating its value
- For any small investor this may not be very good option
- Collectivity factor is lower than coin
However, both forms of investment is much better than having paper currency.