This is a question many new precious metals investors will ask. What is better to buy, bars or coins? I will try to keep this short and sweet, state some pros and cons of each, and then state my personal opinion.
Pros of buying coins:
-Coins are legal tender
-More collectible than bars
-The coin itself will slightly appreciate in value over the years (example a 2005 Silver Eagle is worth more than a 2017 one)
-Coins are easier to barter with during a crisis. The market is more liquid for coins
Cons of buying coins:
- They carry a higher premium over spot price than bars do. This is because they are legal tender, rarer, and more collectible
Pros of buying bars:
- They carry less of a premium over spot price, therefore they are cheaper.
-Easy to store/stack
Cons of buying bars:
-Not as collectible. Therefore, the only thing that will influence the price of the bar is the spot price of silver, not the collector value.
- Not as liquid/easily tradeable/ recognizable as coins. This is especially true if you have 1000 or 5000 ounce bars.
MY OPINION:
In my portfolio of precious metals I have mostly coins and some bars. I prefer coins over bars because if there is no economic meltdown any time soon, my coins will at least slightly increase in value over the years because they are more desirable. This is especially true for my Canadian .99999 gold elk coin and my Somalian elephants. But most of my portfolio is Canadian Maple Leafs and American Silver Eagles. And If there was ever an economic meltdown, I can count on my coins to be highly liquid and get me through any situation.
Bars are great too! I personally buy whatever is the best deal of the day, but I am more geared towards coins because I am a smaller investor.
Bars are especially great for big investors looking to get the lowest premium.