Gold coins or gold bars: which should you buy?
Gold coins and gold bars contain the same metal, but they differ in what you pay above the gold price, how easily they resell and how finely you can split your holding. This guide compares the two side by side so you can choose what fits your plans.
The short answer
For the same amount of gold, a large bar usually costs least, because its premium over the market price is the lowest. Coins cost a little more, but they are recognized by dealers almost everywhere and come in handy sizes. Many buyers hold a mix of both.
The right choice depends on your budget, whether you might sell in small steps and how you plan to store your gold. This guide isn't investment advice; it explains the differences so you can decide.
Premiums: what you pay per gram
Every gold product is priced at the spot price of its fine gold, in US dollars, plus a premium. The premium covers minting or refining, distribution and the dealer's costs. On AU Trading, each product page shows its premium, and you can follow the underlying price on the gold price chart.
Two patterns hold across the range:
- Bigger pieces carry lower premiums per gram. Making and handling a small piece costs nearly as much as a large one.
- At the same weight, bars are usually a little cheaper than coins. Coins are more intricate to strike, and national mints set their own prices.
Premiums at the time of writing (they can change, so check the product page for the current figure):
| Product | Fine gold | Premium over spot |
|---|---|---|
| 1 g bar | 1 g | 18% |
| 5 g bar | 5 g | 9% |
| 10 g bar | 10 g | 6% |
| 20 g bar | 20 g | 4.5% |
| 1 oz American Eagle | 31.10 g | 5% |
| 1 oz Maple Leaf | 31.10 g | 4% |
| 1 oz Krugerrand | 31.10 g | 3.5% |
| 1 oz bar | 31.10 g | 2.8% |
| 100 g bar | 100 g | 2% |
At one ounce, the gap between a bar and a popular coin is one to two percentage points. Size matters far more than shape.
Recognizability and resale
When you sell, the buyer has to be confident your gold is genuine. That is where coins have an edge.
- Bullion coins such as the American Eagle, Maple Leaf, Krugerrand and Vienna Philharmonic are made by national mints to a fixed design, weight and size. US dealers see them every day and can check them quickly. The American Eagle in particular is one of the most widely traded coins in the country.
- Bars from well-known refiners also resell easily, especially in their original sealed packaging with a serial number and certificate. Bars from less familiar makers may need more checking, and some buyers offer less for them.
Dealers typically pay a little below spot for widely recognized products. Your real cost is the premium you pay when buying plus the discount you accept when selling: a large bar's low premium helps on the way in, a coin's recognition on the way out.
Divisibility: small or large pieces
Gold can't be sold in slices. If you hold a single 100 g bar and need part of its value, you have to sell the whole bar. Holding several smaller pieces lets you sell only what you need.
That flexibility costs money, as the premium table shows. A practical middle path for many buyers is the 1 oz size, in coin or bar form: the premium is already fairly low, and it is still a manageable amount to sell at once.
At small sizes, the premium per gram rises quickly, so it is worth asking whether the flexibility is worth the extra cost before buying many 1 g or 5 g pieces.
Sales tax and tax on selling
There is no VAT in the United States. AU Trading currently charges no sales tax at checkout, on coins or bars. State rules on bullion vary: most states exempt investment-grade gold, some tax it, and some exempt it only above a certain purchase amount. Where your state does tax bullion, you may owe use tax yourself. Our guide to sales tax on gold and silver explains this in more detail.
Tax on selling is a separate question. For US federal income tax, gold coins and bars are generally treated as collectibles, which can mean gains are taxed differently from stocks. The rules depend on your situation and can change, so please check with a qualified tax adviser before you sell. Either way, keep your invoices.
Storage and counterfeits
Storage
Gold is dense, so even a large holding takes up little room. Bars stack neatly and are the most compact way to store a given weight. Coins take a little more space and are best kept in tubes or capsules, since scratches can make some buyers offer less. Either way, consider a good home safe or a bank safe deposit box, and check whether your homeowners or renters insurance covers precious metals.
Counterfeits
Fakes exist for both coins and bars. The best protection is buying from an established dealer rather than a stranger or an online marketplace. Beyond that:
- Modern bullion coins from major mints include security features such as fine radial lines, and each has a known weight, diameter and thickness.
- Bars from recognized refiners carry a serial number, fineness and weight stamp, and small bars usually come sealed in a card with a certificate. Keeping that packaging intact makes resale simpler.
- Larger bars are a more tempting target for counterfeiters, because a single fake is worth more. Dealers use tests such as precise weighing and measuring to check them.
Which suits whom
| If you… | Consider | Why |
|---|---|---|
| want the most gold for your money | Large bars (100 g, 50 g) | Lowest premium per gram |
| want a balance of cost and flexibility | 1 oz coins or 1 oz bars | Low premium, easy to sell in steps |
| value easy resale anywhere in the US | American Eagles or other well-known bullion coins | Recognized by dealers nationwide |
| want to buy in small amounts | 5–20 g bars or fractional coins | Lower outlay, higher premium per gram |
| live in a state that taxes bullion | Check your state's rules first | Some states tax bullion or exempt it only above a threshold |
When you have decided, our guide on how to buy gold online walks through ordering and paying.
Common questions
Is a coin worth more than a bar of the same weight?
Not in gold content: both contain the same fine gold. A coin usually costs a little more and may be easier to sell, but its value follows the gold price just like a bar's.
Are 22-karat coins a worse deal than 24-karat ones?
No. An American Eagle or a Krugerrand contains its full stated weight of fine gold; the alloy only adds weight and hardness. Compare products on fine gold content and premium, not on karats.
What is the cheapest way to buy gold per gram?
Usually the largest bar you are comfortable holding. Remember that a single large bar has to be sold in one go, so weigh the lower premium against the loss of flexibility.
Do I pay sales tax on gold coins or bars?
AU Trading currently charges no sales tax at checkout. Whether your state expects use tax depends on its rules, which vary, so check with your state or a tax adviser.
