There are plenty of options when you buy bullion. There are coins from sovereign mints all around the world, a diverse selection of bullion bars from mints and private refiners, and different ways to acquire varying weights of gold and silver.
If you’re familiar with the bullion market, the abundance of choices makes it easy to find the perfect bullion product for your goals. But if you’re still learning about investing in gold and silver, this guide to Canadian bullion will help you decide between gold coins vs gold bars, silver coins vs silver bars, and more.
What’s the definition of a coin? It’s not just a round shape. A gold coin is actually legal tender in the country where it’s made. That doesn’t mean you’ll be able to exchange it for cash at the bank or buy anything with it, as retailers don’t have to accept non-circulating tender. Nor would you necessarily want to with gold or silver coins (as the face value is significantly less than the precious metal value). But coins do have a face value, just like the change in your pocket, though it rarely has much to do with the gold content.
Coins can only be made by a sovereign mint such as the US Mint or Royal Canadian Mint. Coin-shaped gold from a private refiner is referred to as a round. Rounds are effectively the same as gold bars in a different shape.
Gold bars can be produced either by mints or refiners like Valcambi and PAMP Suisse. You won’t find any heads of state or unique designs on these products. Instead, you’ll find just essential information, usually the name of the manufacturer, a logo, the bar’s weight, the gold purity, and a serial number.
Bars can either be minted or cast. Minted gold bars have a sharper, more finished appearance, whereas cast bars look a bit rougher and have a hand poured finish and look to them.
Both bars and coins are excellent options for investors. When you’re buying gold in Canada, you have access to one of the most reputable bullion coins in the world, the Canadian Maple Leaf. Internationally recognized for its high gold purity and security measures that make coins easy to authenticate, they have broad appeal and one of the readiest markets when you want to sell.
Collectors and those who want their gold to have something unique about it will also appreciate coins sourced from around the world. There are many unique designs on coins out there, and mints regularly release limited-edition commemorative bullion coins that will make an interesting addition to any collection.
Bars often have lower manufacturing costs, and they can be cheaper to purchase per ounce. If you are an investor whose primary concern is minimizing costs, there’s a compelling argument that you should stick to gold bars. They can also be purchased in larger weights such as 1 kg gold bars, and you don’t have to worry as much about damaging them. Refiners like PAMP Suisse are also investing in better technology to verify gold bars as well.
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Silver is an excellent alternative to gold for several reasons:
As with gold, silver bars are excellent purchases for investors who want larger quantities, easier storage, and are just looking for the raw value of bullion. While silver is often overlooked in a crisis, it also offers some degree of protection during periods of economic turmoil. It also gives investors direct control over a highly liquid asset, and it has a long history as a form of wealth that many take comfort in. When the market loses faith in fiat currencies, and inflation picks up, interest in bullion of all types rises, as it’s widely viewed as an inflation hedge that can help preserve your wealth.
While you should still take precautions about properly storing silver bars, you don’t need to worry as much about their condition or tarnishing. The value of a silver bar is based on its weight and purity, and it’s one of the most affordable ways to accumulate wealth in precious metals. Bars are also easier to stack, and you can economize space in a safe or vault.
There is a robust market for silver coins for a reason. Many buyers enjoy the many designs available on fine silver coins from around the world. Collectors may seek out numismatic coins, which derive value above and beyond their precious metal content due to their rarity and desirability. In addition to widely available contemporary sovereign coins, Global Bullion Suppliers also offers harder-to-find numismatic coins that will be of interest to collectors. The cross-over appeal between investors and collectors gives them a wide market.
Coins from sovereign mints are also widely trusted. This makes them easier to verify and sell when you’re ready to cash in. These are some of the best silver coins to buy for quality and trustworthiness.
Canadian Maple Leaf:This .9999 fine 1 oz silver coin enjoys the Royal Canadian Mint’s sterling reputation for producing high-quality products, which are finer than the .999 coins produced by most other mints.
American Silver Eagle:The American Eagle is a best-seller both within the United States and internationally, featuring the famous Walking Liberty design that’s become a hallmark of the bullion industry.
Perth Mint Kangaroo:Australia’s Perth Mint is another globally-recognized name in the bullion world and one of the few that offers another four nines fine coin, featuring one of the country’s most famous animals.
Other widely known examples include the Britannia, Mexican Libertad, South African Silver Krugerrand, and Austrian Philharmonic.
For more advice on finding the best product for you, contact us today to discuss your options. We can help you decide between gold and silver, coins and bars, and connect you with the right product.