SUMMARY :

1) Investing in gold bullion: what you need to know

 

Along with the gold nugget, gold bullion is certainly what best symbolizes this golden metal in the collective mind.

When it comes to investment and international trade, gold is generally represented as a bar of pure gold weighing one kilogram. However, it is quite possible to find smaller formats: 5, 10, 50, 100 or even 500 grams.

Basically, bullion is standardized and has a near-perfect purity of 999.9 ‰ (24 carats). In addition, each ingot is visually identified by the smelter's hallmark or a unique serial number.

We would also point out that ingots are manufactured to very strict standards, including those of the London Bullion Market Association (LBMA) for "Good Delivery" ingots.

 

Advantages of gold bullion : Disadvantages of gold bars :

- The standardization of gold bullion facilitates its resale on professional markets.

- Gold bullion has a high unit value, making it practical for large investments.

- Economies of scale: acquisition costs per gram are generally lower than for small coins.

- Secure storage is essential: the value of gold bullion calls for reinforced protection measures (safe deposit box, guarding, specialized company, etc.).

- Limited liquidity compared to gold coins, as it can be more complex to find a buyer for a whole bar.

- Limited flexibility, as it is difficult to sell a fraction of an ingot.

 

 

2) Gold coins: an accessible, diversified investment

 

Gold coins are the only credible alternative to bullion when it comes to investing in physical gold.

Gold bullion coins offer flexibility at a lower acquisition cost than bullion. That's why gold coins are particularly popular with novice investors, whether to start a collection or simply to build up a diversified gold portfolio step by step.

As a reminder, there is a huge variety of bullion gold coins on the market. We offer a wide choice of coins from different continents. Among the most popular and sought-after by investors are :

- The KRUGERRAND SUD-AFRICAIN weighing 33.93 grams with a diameter of 32mm and a purity of 917‰

- The 50 PESOS Mexican gold weighing 41.656 grams with a diameter of 37mm and a purity of 900‰

- The 20 FRANCS NAPOLEON weighing 6.45 grams for a diameter of 21mm and purity of 900‰

- The SOUVERAIN BRITANIQUE weighing 7.988 grams for a diameter of 22mm and a purity of 917‰

- The 20 SWISS FRANCS weighing 6.45 grams for a diameter of 21mm and a purity of 900‰

- The 20 AMERICAN DOLLARS weighing 33.437 grams for a diameter of 34mm and a purity of 900‰

- The AUSTRIAN GOLD DUCAT weighing 3.49 grams for a diameter of 20mm and a purity of 986‰

 

Advantages of gold coins : Disadvantages of gold coins:

- Ease of access, as you can start investing with a few hundred euros.

- Easy to resell, as easily fractionable.

- Diversification of the gold coin portfolio.

- Significant numismatic potential, as certain rare coins can increase in value independently of the gold price.

- VAT exemption under certain conditions.

- Purchase premium: their price often exceeds the weight of gold they contain.

- Vulnerable to theft or loss, given their small size and weight.

- Ideally, they require secure storage.

- The multiplicity of coins, states of preservation, editions, vintages... requires a certain knowledge and the assistance of a professional.

 

 

Please note that bullion coins must meet certain conditions to qualify for VAT exemption in Europe.

  • These coins must have been minted and issued after 1800.
  • They must have been legal tender
  • They must be titled at at least 900 ‰

 

3) Comparing gold bullion and gold coins

 

To better understand the respective strengths and weaknesses of gold bullion and gold coins, here's a more detailed comparison:

 

  Gold bars : Gold coins :
Storage and preservation: Because of its volume and weight, it requires a large amount of secure space. We recommend storing them in a bank or other secure establishment.

Very small in size, coins are easy to store. Can be kept at home in a small safe, for example. The risk is spread by the presence of several coins.
Acquisition : High cost (from several thousand euros). Variable cost (from a few hundred euros).
Liquidity and flexibility: Unit sales, i.e. non-divisible, resulting in low flexibility. Possibility of fractional sales which provides greater flexibility in managing sales.
Applicable taxation :

Identical system, with option between :

- 11.5% flat-rate tax

- Capital gains tax

 

 

4) How to choose between bullion and gold coins according to your profile

 

As you can see from the above comparison, the choice between gold bullion and gold coins depends essentially on your investor profile, your liquid assets and, ultimately, your personal and financial objectives.

- INVESTING IN GOLD BULLIONS is particularly suitable for investors wishing to invest large sums of money in a tangible asset.

For sophisticated investors with a budget of several tens of thousands of euros, it may be worthwhile acquiring bullion, particularly to optimise the cost per gram (premium charges). You can also aim for a long-term horizon with passive management of this investment, stored safely.

- GOLD COINS are ideal for investors looking for flexibility, diversity and liquidity, and who want to build up their capital gradually.

For cautious investors, gold coins can be purchased for as little as a few hundred/thousand euros. What's more, because they are easy to resell, you can aim for a short- to medium-term investment horizon if you need liquidity.

 

But why should we necessarily pit gold bullion and gold coins against each other ?

It is perfectly possible to combine these two different assets to further optimise the diversification of your assets. This makes it possible to smooth out risk and benefit from the advantages of each.

This is the choice made by many investors in physical gold:

- Part of their capital is allocated to bullion to optimise purchase costs and position themselves in a safe-haven asset.

- The other part is allocated to coins for greater liquidity and flexibility.