If you’ve ever browsed through a gold dealer’s website such as 1OZ Gold Britannia or walked into a bullion shop, you’ve probably noticed something curious: gold bars and gold coins often contain the same amount of gold, but their prices don’t always line up. Why is that?
The main reason comes down to premiums. When you buy gold, you’re not just paying for the metal itself—you’re also paying extra charges layered on top of the spot price. These include manufacturing costs, handling, shipping, and dealer margins. Gold bars usually carry lower premiums, especially when you buy in larger sizes. The bigger the bar, the more efficiently those added costs are spread across each gram of gold. That makes bars the go-to option if you’re aiming to acquire the most gold for the least amount of money.
Gold coins, however, come with their own appeal. Coins like the Gold Britannia, American Eagle, or Krugerrand are minted by national governments and often have intricate designs, historical significance, and even limited edition runs. This extra craftsmanship, along with their global recognition, tends to push premiums higher. With coins, you’re not just buying gold—you’re also paying for artistry, tradition, and, in some cases, collectibility.
Flexibility is another factor to consider. Gold coins are typically available in smaller denominations, making them easier to buy or sell in portions. Need to liquidate a small amount? Selling one or two coins is a lot easier than trying to divide up a large bar. Gold bars also come in smaller sizes, but the best value is generally found in larger ones, which aren’t as easy to trade in small amounts.
Keep in mind that not all gold bars and coins are created equal. A standard 1oz bar from a reputable refiner might cost less than a rare proof coin from a major mint. Similarly, a basic bullion coin may be cheaper than a limited edition bar with an intricate design and high production costs.
Taxes also play a role. In the UK, coins like the Gold Britannia and the Sovereign are legal tender and exempt from Capital Gains Tax. That gives them a tax edge over many gold bars, which don’t always enjoy the same benefit.
So, are gold bars cheaper than gold coins? In terms of pure gold value per ounce, yes—bars generally offer better pricing. But coins offer other advantages: tax efficiency, ease of sale, and strong appeal for both collectors and investors. Ultimately, the better choice depends on your goals. If you’re focused purely on stacking gold at the lowest price, bars are ideal. If you value flexibility, history, or tax savings, coins might be the smarter route.