Bars vs Coins: Which Bullion Option Suits You Best?

When investing in precious metals, a common early decision is whether to buy bars or coins. Each option offers distinct advantages depending on your goals—whether you're prioritising value, collectability, or ease of trade. This article outlines the key differences to help you decide what’s right for your investment strategy.

Understanding the Basics

Both bars and coins are classified as bullion, meaning they’re GST-free and must display weight, brand, and purity. The key distinction is that coins are legal tender, backed by a government mint and stamped with a face value, while bars are simply refined metal without that legal status.

Why Investors Choose Coins

Coins carry government-backed credibility and are widely recognisable—qualities many buyers value, especially when trading or gifting. They also appeal to collectors, with limited mintages and distinctive annual designs. The Perth Mint’s Lunar Series remains a standout favourite. International coins like the Maple Leaf, Britannia, and Krugerrand also attract interest, though their designs typically remain consistent year to year.

Why Investors Choose Bars

For those focused purely on metal exposure, bars usually offer better value. They carry lower premiums and provide more ounces for your dollar. If you’re buying for investment or savings first and foremost, most people will usually go for the biggest, cheapest bar they can.

Key Considerations

• Premiums: Coins usually cost more per ounce due to design and minting costs.
• Superannuation: Some accountants classify coins as collectables, which may complicate storage rules in SMSFs.
• Liquidity: Dealers buy back both coins and bars at or near spot, so resale value depends more on metal price than design.

Finding Your Balance

Many investors end up holding both — bars for efficient stacking, and a few coins for enjoyment, collectability or gifting. There’s no right or wrong. Just understand why you’re buying — whether it’s for investment, collection, or a bit of both.