Since it was discovered thousands of years ago, the processes of refining gold cast bars, minted bars and bullion coins has improved and evolved a number of times. This now gives investors a variety of options in terms of brands, types and sizes. Depending on the manufacturing process, we can typically classify gold bars into two kinds – minted gold bars and gold cast bars.
One of the main differences between bars and coins is the way in which they are made. Below, we take a look at the difference between gold cast bars, gold minted bars and gold bullion coins. Once you’ve decided which type you want to invest in, you can check the gold bullion price here or at reliable traders.
- Gold Cast Bars
If you are an investor that wants to pay the lowest possible premium over spot gold prices, you might want to consider gold cast bars as they tend to have the lowest fabrication cost. As a buyer, though, it’s important to know that when it comes to purchasing gold cast bars, it is important to only make your purchases from reliable and completely trustworthy sellers to make ensure the bar’s weight, re-saleability and purity.
Gold cast bars are most often available in one ounce, 2 ½ ounce, 5, 10, 20 and even 50-ounce weights. If you want to make larger purchases, for example 20-ounce cast bars, you can often pick it up for a good discount over the current spot price.
- Gold Minted Bars
A gold minted bar is cut from rolled gold, offering both a better appearance and better finish. The bars are stamped with a variety of designs on a minting press. It seems that gold minted bars are particularly popular in jewellery stores in Asia. That’s because you can buy them in sizes as tiny as 0.3 grams and they often come in a tamper-proof, secure container.
Commonly, gold minted bars are sold in sizes of 5, 10 and 20 grams, as well as 1 ounce, 50 grams, 100 grams and even 10 ounces. A gold minted bar that weighs one ounce is the most favoured amongst buyers.
- Gold Bullion Coins
Smaller investors favour the gold bullion coins as they are both issued and also guaranteed by governments, are available in a range of sizes, are rather hard to counterfeit as they are so thin in size, and they are issued with detailed and distinct designs that add yet another dimension to the desirability to own gold. The minting process involved in producing gold bullion coins is also a lot more complex compared to that for producing bars, and therefore the premium over the gold spot price is usually a great deal higher.
There can be several differences between gold cast bars, minted bars and bullion coins. Each kind of bar and coin is used for a different purpose. While gold cast bars are very popular amongst investors and collectors alike for their traditional nature, they tend to have the least return on investment. Yet, minted bars are costlier to buy but offer a better resell value. It’s important to make your investment decision based on how you intend to use the gold.