Premium Differences
Gold bars typically carry lower premiums over spot price compared to gold coins. A 1 oz gold bar might have a premium of 3-6% over spot, while popular coins like the American Gold Eagle can carry premiums of 5-10% or more.
The premium difference exists because coins cost more to produce. Government mints create detailed designs, apply anti-counterfeiting measures, and maintain strict quality control. Bar production is simpler and more efficient.
Legal Tender Status
Gold coins issued by government mints carry a face value and legal tender status in their country of origin. The American Gold Eagle has a $50 face value, for example. This status has no practical impact on the coin's market value, which is determined by gold content.
Gold bars have no legal tender status. They are simply refined gold in convenient form. For most buyers, this distinction is irrelevant since both bars and coins trade based on their gold content plus premium.
Recognition and Resale
Certain gold coins enjoy widespread recognition that can make them easier to sell. The American Gold Eagle, Canadian Gold Maple Leaf, and South African Krugerrand are recognized globally. Dealers, collectors, and investors all actively trade these coins.
Bars from major refiners are also widely accepted, though the buyer pool may be slightly different. Some collectors specifically seek coins for their designs, while bars appeal to buyers focused purely on gold content at the lowest premium.
Which Is Right for You
If minimizing premium is your priority, bars usually offer better value per ounce of gold. If you value recognition, collectibility, or legal tender status, coins may be preferable despite the higher premium.
Many investors hold both. Bars provide efficient accumulation when adding larger amounts, while coins offer flexibility and broader appeal when selling smaller quantities. You can review current 1 oz gold bar offerings to compare options.