Interest in investment gold, which is exempt from VAT in the European Union, is steadily growing. If you decide to invest and store your savings in physical gold, you have two options. You can either buy an investment gold bar – a piece of precious metal – or choose an investment gold coin. Along with the coin, you will also acquire a collector’s item with considerable aesthetic value in addition to the precious metal itself. Investment gold coins are most often decorated with a distinctive and detailed depiction of the issuing country’s characteristic symbol. In both cases, the price of the investment bar or coin is mainly determined by the price of gold.
Gold bars from 1 gram to 1 kg
Gold investment bars (commonly referred to as bricks and ingots depending on their size) are marked with official information, including the manufacturer’s name, exact weight, unique serial number, and a certificate of authenticity and origin. Gold bars are either minted or cast. Minted bars usually weigh between 1 and 100 grams. Cast bars weigh between 500 grams and 1 kilogram. Unlike gold coins, gold bars are not particularly attractive. However, holding a half-kilogram or even a kilogram gold bar in your hand is truly an extraordinary experience.
Gold coins also have aesthetic and collector’s value
The situation is different with gold coins, which are often purchased for their unmistakable charm, artistic, craftsmanship, and collector’s value. Among the best-known investment coins are the Wiener Philharmoniker, Krugerrand, Maple Leaf, American Eagle, and others. These gold investment coins are issued in volumes of many millions. Compared to historical gold coins with significant numismatic value, they are much more affordable. Investment gold coins are highly liquid and easily tradable worldwide.
Unfortunately, not everyone has the opportunity to invest their spare cash in a large piece of gold. However, when such an opportunity arises, it is important to think carefully about the investment and not act rashly. It is a good idea to diversify the funds invested in gold. The size and shape of a coin or ingot can have a significant impact on future value growth and, therefore, the effectiveness of the entire investment. The size and weight of gold also affect the ability to dispose of it quickly and freely.
Better to have a larger number of smaller amounts of gold
Gold processed into aesthetic coins can serve investors better. A kilogram bar of gold is easy to buy, but much harder to sell. If you only need a small amount of cash, a large and heavy ingot cannot be divided. It is much more practical to store your funds in a larger number of gold coins, such as ounce coins. Individual coins are easy to sell on the market. Of course, you can also invest in a larger number of gold bars. It is always important to be aware of how much you are investing and what your plans are for the future.
Invest in gold bars or coins?
The same rules apply to gold investment coins as to gold bars. When buying a coin, you only pay the price of gold, because investment gold, whether in the form of a bar or a gold coin, is exempt from VAT (21%) in the Czech Republic under Section 92 of the VAT Act. This exemption applies throughout the European Union.
So how do you decide? Is it better to invest in gold bars or coins? That depends on the preferences of each investor. Recently, it has paid off to invest in some gold coins issued by the CNB, where the appreciation of the coin was also influenced by other factors, primarily collectability. The price of gold naturally rises as the value of money falls. However, the market price of a gold coin is not only determined by the price of the precious metal, but also by the cost of production and the demand from customers who want to buy it. In contrast, the price of a gold bar or brick is always determined by the proportion of precious metal (gold) it contains and its current price.
