De Munter is a dealer in gold and silver, not a licensed investment adviser. This page is a neutral guide with the advantages and disadvantages of bars and coins, and is not a recommendation to buy, sell or invest. For personal financial or tax advice, best consult a recognised adviser. You always decide yourself.
The big picture first: large investors often choose bars, at the lowest cost per gram. Small and beginner investors usually do better with coins, because they are more flexible and easier to trade. Why that is so, and when each choice pays off, you read below.
Why Physical Gold?
Gold has held its value for centuries. It protects against inflation, currency risk and geopolitical unrest. Whoever chooses physical gold, as opposed to ETFs or gold certificates, wants the tangible thing: durable and without counterparty risk.
But the form in which you buy that gold makes a noticeable difference to your return and your convenience.
Gold Bars and Coins in Detail
Each type has clear strengths and limitations. Gold bars are rectangular blocks of almost pure gold (999.9 fine, 24 carat), produced by recognised refiners such as PAMP Suisse, Heraeus and Valcambi. Gold investment coins, also known as bullion coins, are struck by national mints and recognisable worldwide.
Gold bars, 999.9 fine (24K), LBMA certified
Advantages
- Lower purchase premium, often only 2 to 5% above the spot price
- More gold per euro in larger formats
- Compact and efficient to store
- Recognised worldwide through LBMA certification
- Maximum purity (999.9 fine)
Limitations
- Less liquid and harder to divide
- Higher counterfeit risk on large bars (tungsten core)
- Higher starting capital required
- No collector or numismatic added value
Gold coins, struck by national mints
Advantages
- High liquidity, sellable anywhere in the world
- Flexible entry from a few hundred euros
- Harder to counterfeit due to the complex design
- Some coins are legal tender
- Possible numismatic premium on rare years
Limitations
- Higher purchase premium, 5 to 15% above spot
- More storage space per gram than bars
- Possible wear on non-encapsulated coins
- Wider choice, so more choice stress
Common Bar Formats and Premiums
The larger the bar, the smaller the margin. A kilo of gold you buy with a premium of barely 2 to 4%. A small gram of gold soon costs 15 to 25% more than the spot price.
| Format | Weight | Premium over spot | Suitable for |
|---|---|---|---|
| Very small | 1 g – 5 g | +15 to 25% | Gift or small budget |
| Small | 10 g – 20 g | +8 to 12% | Starting investors |
| Medium | 50 g – 100 g | +4 to 7% | Active investors |
| Large | 250 g – 1 kg | +2 to 4% | Wealthy and institutions |
The Most Popular Investment Coins
Recognised worldwide, easily tradable and available in smaller denominations (1/10 oz to 1 oz).
| Coin | Country | Purity | Notable |
|---|---|---|---|
| Krugerrand | South Africa | 22K (91.67%) | First modern bullion coin (1967) |
| Maple Leaf | Canada | 999.9 (24K) | First 24K coin in the world |
| Philharmonic | Austria | 999.9 (24K) | European top choice |
| American Eagle | USA | 22K (91.67%) | Legal tender in the US |
| Britannia | United Kingdom | 999.9 (24K) | Advanced security |
| Kangaroo | Australia | 999.9 (24K) | Design changing each year |
| Panda | China | 999 (24K) | Collectible, growing popularity |
Bars vs Coins, Side by Side
Costs: bars win clearly
For larger amounts a bar simply pays off more. The difference in premium can, on an investment of 20,000 euros, quickly add up to several hundred euros.
| Cost factor | Bars | Coins |
|---|---|---|
| Purchase premium | 2 to 5% | 5 to 15% |
| Selling spread | Smaller | Larger |
| Total transaction costs | Lower | Higher |
| Value per gram | Better | Less efficient |
Liquidity: coins are more flexible
This is the biggest practical advantage of coins. With coins you sell piece by piece: if you only need part of your money, you sell a few coins and simply keep the rest. A bar, by contrast, you sell all at once and in full. Whoever owns a kilo bar and suddenly needs 5,000 euros must cash in the whole bar.
Exchanging a bar afterwards for smaller pieces is moreover not a smart solution, because you lose money there. Smaller bars and coins carry a higher premium per gram than a large bar (the making and processing costs weigh more heavily on a small piece). On an exchange you pay that premium again, plus the dealer's margin. No company does such a swap for free: there is no profit for them in an equal-for-equal exchange. The cost efficiency you gained with a large bar, you thus give away again.
Do you think you might want to sell your gold in pieces later? Then choose coins or smaller bars from the start. Splitting afterwards costs you premium and margin each time again.
Security and authenticity
Coins are, due to their complex design, harder to counterfeit. Bars require professional verification for larger transactions.
| Aspect | Bars | Coins |
|---|---|---|
| Counterfeit risk | Higher | Lower |
| Verification method | Ultrasound or XRF | Visual or magnetic |
| Identification | Serial number | Year and mint mark |
| Security features | Limited | Complex design |
Taxes in Belgium
Both gold bars and recognised investment coins are VAT exempt throughout the European Union. On that point the form makes no difference.
Do note the capital gains tax: since 2026 profit on the sale of investment gold can be taxed. How exactly it works and what it means for you, you read on our page about capital gains tax on gold. When in doubt, always consult a tax specialist for tailored advice.
Which is Best for Whom?
Three proven approaches. Choose the strategy that suits your situation.
Choose bars if you…
- Want to invest more than 10,000 euros
- Seek the lowest cost per gram
- Have secure (safe) storage
- Invest for the long term
Choose coins if you…
- Start with a smaller budget
- Want flexibility and liquidity
- Buy spread out (dollar-cost averaging)
- Take collector value as a bonus
The combination: a core-satellite approach
Many experienced investors combine both: about 80% bars as a stable, cost-efficient core and 20% coins for liquidity and flexibility. That way you benefit from low premiums and keep coins on hand for a quick, partial sale.
Verdict per criterion
| Criterion | Winner |
|---|---|
| Lowest purchase costs | Gold bars |
| Best liquidity | Gold coins |
| Safest against counterfeiting | Gold coins |
| Most flexibility | Gold coins |
| Best scalability | Gold bars |
| Ideal for beginners | Gold coins |
Frequently Asked Questions
What is better for a beginner: gold bars or coins?
Do I have to pay VAT on gold?
What is the best gold coin to buy?
How much gold should be in a portfolio?
Conclusion
There is no universal winner. The best choice depends on your budget, your investment horizon and how quickly you may want to be able to cash in your gold. Whoever invests wisely combines both, and always buys from a recognised dealer.
Do you want to sell investment gold or coins later? Keep your proofs of purchase. That makes the sale smoother and helps with correct tax processing.