What is the difference between a gold coin and a gold bar?
The short answer
A gold coin is struck by a mint to a standard design, weight and purity, and some, such as the Krugerrand, are legal tender. A gold bar is produced by a refiner or mint in a range of sizes and stamped with its weight, purity and maker. Larger bars often carry a lower premium per ounce, while coins are easier to buy and sell in small amounts.
How each is made and marked
Bullion coins are struck by mints in fixed sizes with recognisable designs. Gold bars come in two main forms. Cast bars are made by pouring molten gold into a mould, which gives a rougher finish. Minted bars are cut from rolled gold and struck, which gives a smooth, precise finish, and they are often sealed in a card with an assay certificate. Bars are typically stamped with their weight, fineness and the refiner's mark, and many carry a serial number.
Premiums, sizes and flexibility
Larger bars usually cost less per ounce above the gold value than coins or small bars, because production costs are spread over more metal. The trade-off is flexibility: a large bar must be sold whole, while a holding of coins can be sold a few at a time. Small bars and fractional coins both tend to carry higher premiums per ounce.
Recognition, verification and resale
Widely known coins and bars from recognised refiners are generally easier to sell. Buyers check weight, dimensions and composition, and some may ask for the original packaging or certificate of a bar. Damaged packaging or an unfamiliar maker can make a bar harder to sell or lead to further testing.
VAT and storage
VAT treatment can differ between products. Gold Krugerrands are always zero-rated in South Africa, while other bullion products may be treated differently depending on the product and the facts, so check SARS guidance or ask a tax practitioner before you buy. Bars stack neatly and use little space; coins kept in tubes are also compact.
Choosing between them
Neither form suits everyone. Consider how much you plan to buy, whether you may want to sell in parts, and how you will store it. Knox's bullion range includes gold Krugerrands (1 oz, 1/2 oz, 1/4 oz and 1/10 oz), gold bars (10 g, 50 g and 100 g), 1 oz silver Krugerrands and 1 kg silver bars.
How Knox handles this
Ready for the next step?
Speak to the Knox team about your situation. They will confirm current pricing, availability and requirements before you decide.
