Coins or Bars: Which Should You Buy?
The metal is the same. What differs is how much you pay above its value, how easily you can sell part of what you hold, and how any gain is taxed.
Premium: Bars Usually Win
A bar is simpler to make than a coin, and the larger it is the less the manufacturing cost matters against the value of the metal. A 100g gold bar generally carries a lower percentage premium than three 1oz coins, and a 1kg bar lower still. If the only aim is the most metal for a given sum, larger bars are normally the answer. The premium column on our comparison pages shows the gap for today's prices.
Flexibility: Coins Usually Win
You cannot sell a third of a bar. Someone holding one 100g bar who needs to raise a few hundred pounds has to sell all of it. The same weight held as coins can be sold one at a time. Smaller units cost more per gram, and that extra is the price of being able to sell in pieces.
Tax: UK Legal Tender Coins Are Different
Sovereigns and Britannias are UK legal tender, which makes gains on them exempt from Capital Gains Tax for UK residents. Bars and coins from other countries' mints do not have that exemption. For a holding large enough that a gain could exceed the annual allowance, this can outweigh a difference in premium. Our guide to Capital Gains Tax on coins covers the rule in more detail.
Resale
Well-known coins and bars from recognised refiners are easy to sell back to dealers. Unusual sizes, damaged pieces and bars from refiners a dealer does not recognise can attract a lower buy-back price. Whichever form you choose, staying with widely traded products keeps resale simple.
A Rule of Thumb
Smaller amounts, or money you may need back in stages: coins. Larger amounts held for the long term where CGT is unlikely to matter: bars. Many people hold both.
Not Financial Advice
This guide describes general trade-offs. It does not take your circumstances into account and is not a recommendation to buy or sell anything. Tax rules change; check the current position with HMRC or a qualified adviser.