If you are new to gold investing in the UK, one of the first questions you will face is whether to buy coins or bars. Both are popular, both are easy to buy online, and both give you direct ownership of physical gold. But they are not the same, and which is better depends on your goals.
Why Some People Prefer Coins
Gold coins have a lot going for them, which explains why they are often the first choice for UK investors.
- Tax benefits – British coins like the Sovereign and Britannia are exempt from Capital Gains Tax, which means you keep all the profit when you sell.
- Flexibility – You can sell one coin at a time rather than parting with a large bar.
- Global recognition – Coins such as Sovereigns, Britannias, and Krugerrands are known worldwide, making them easy to trade.
- Collectability – Some coins have added interest for collectors, which can increase their value over time.
Why Others Prefer Bars
Bars are the go-to choice for many investors who want the most gold for their money.
- Lower premiums – Bars usually cost less per gram than coins, so you get better value.
- Range of sizes – From 1g all the way up to 1kg, there is something for every budget.
- Simplicity – Bars are valued almost entirely for their weight and purity, with no extra collector premium.
- Easy storage – Their uniform shape makes them simple to stack and store.
Head-to-Head Comparison
Here is how coins and bars stack up against each other:
| Feature | Coins | Bars |
|---|---|---|
| Value per gram | Higher premiums | Lower premiums |
| Tax treatment | UK coins like Sovereigns and Britannias are CGT free | CGT applies |
| Liquidity | Easy to sell in small amounts | Best for bulk sales |
| Collectability | Some designs add extra appeal | Purely investment-focused |
| Storage | Compact but irregular shapes | Uniform and stackable |
Which Should You Choose?
There is no single answer that fits everyone.
- If you want tax efficiency and the ability to sell in small amounts, coins are the stronger choice.
- If you want to build up gold at the lowest possible premium, bars make more sense.
- Many UK investors buy a mix of both, using coins for flexibility and bars for bulk value.
Practical Scenarios
- First-time investor with £1,000 to spend – A handful of Sovereigns or a 1oz Britannia could be the best starting point.
- Experienced investor adding £10,000+ to their portfolio – Larger bars such as 100g or 1kg may provide better long-term value.
- Someone focused on tax-free growth – Stick with UK legal tender coins like Sovereigns and Britannias.
- Someone who wants simplicity and efficiency – Bars from refiners such as PAMP, Metalor, or The Royal Mint will do the job.
FAQs About Coins vs Bars
Are coins or bars easier to sell?
Coins are easier to sell in small amounts, while bars are more efficient if you are selling larger sums.
Do coins always cost more than bars?
Usually, yes. Coins often carry higher premiums, but the CGT exemption on UK coins can offset this.
Which holds value better long term?
Both hold their value in line with the gold price, but coins may benefit from collector interest.
Should I only buy one or the other?
Not necessarily. A balanced approach of holding both is common among UK investors.
Final Thoughts
The decision between gold coins and gold bars comes down to your priorities. Coins offer tax advantages and flexibility, while bars deliver efficiency and lower premiums. Most UK investors find that a mix works best, giving them the benefits of both. If you are just starting out, begin with coins for their accessibility, then add bars as your portfolio grows.
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