Both bars and bullion coins are investment gold and, as such, are VAT-exempt. The difference is not in the purity of the metal, but in how they behave when it comes to buying, storing and, above all, selling.
In this article
The premium: how much you pay above the metal
The premium is the extra you pay over the value of the gold itself. It covers manufacturing, distribution and, for coins, minting. As a general rule, the larger the piece, the lower the premium per gram: a large bar is the cheapest gold per gram, while coins and small bars carry a higher premium because they cost more to produce relative to their weight.
The differences that matter
Selling part or all of it
A 100-gram bar is a single piece: if you need cash and only want to sell part, you have to sell the whole bar. Ten one-ounce coins let you sell one at a time, as and when you need to.
Ease of reselling it
The best-known bullion coins (Krugerrand, Maple Leaf, American Eagle, Philharmonic) are recognised and bought back anywhere in the world, which makes them highly liquid. A bar from a little-known brand may require an authenticity assay before it is bought back.
Maximum gold for your money
For the same weight, a medium-to-large bar works out cheaper per gram. If your goal is to accumulate the largest possible amount of gold with your investment, the bar wins.
Verification and trust
Official coins have designs and anti-counterfeiting features that are easy to check. Either way, always buy from accredited dealers and keep the invoice and the certificate: that is what guarantees the piece can be traced.
Neither investment gold bars nor coins carry VAT. Silver, on the other hand, carries 21% in both formats, as we explain in this article on VAT on metals.
So, which is better?
There is no single answer, but there is a rule of thumb. For large amounts where the aim is to accumulate, medium-to-large bars give you the most gold per euro. To get started, to give as a gift or to keep flexibility when selling, well-known one-ounce coins are the best way in. Many investors combine the two: bars as the core of the position and coins for the part they want to keep liquid and divisible.
Whatever the format, the next decision matters just as much: where to store physical gold safely. And if you are still undecided between metals, this comparison of silver and gold will help you decide.
At Equus Capital we are with you throughout your purchase of physical gold in Valencia: which format to choose, a fair premium, certification and custody. First consultation free and with no obligation.
Frequently asked questions
Which has the lower premium, a bar or a coin?
A medium-to-large bar has the lowest premium per gram, because it costs less to produce relative to its weight. Coins and small bars carry a higher premium in exchange for greater divisibility and liquidity.
Which is easier to sell?
Globally recognised bullion coins (Krugerrand, Maple Leaf, American Eagle, Philharmonic) are very easy to resell anywhere. A bar from a little-known brand may require an authenticity assay before it is bought back.
Can I buy gold in small amounts?
Yes, with one-ounce or fractional coins, or small bars of a few grams. It is a way to start with little money or to hold pieces you can split, at the cost of a slightly higher premium per gram.
Which is better for gifting or inheriting, bars or coins?
Coins tend to be more practical because of their divisibility: they allow the gold to be split or handed over piece by piece, which is very useful when there are several recipients or heirs.