WEBVTT 00:00:00.000 --> 00:00:03.020 Welcome to the Deep Dive. Today we're tackling 00:00:03.020 --> 00:00:06.099 a really common question if you're thinking about 00:00:06.099 --> 00:00:09.919 gold, coins, or bars. Which way should you lean? 00:00:10.199 --> 00:00:12.839 Yeah, it can seem a bit confusing at first. Exactly. 00:00:13.160 --> 00:00:15.339 So we want to try and cut through that confusion 00:00:15.339 --> 00:00:18.219 a bit, give you some clear pointers without getting 00:00:18.219 --> 00:00:20.500 totally lost in the weeds. And we're drawing 00:00:20.500 --> 00:00:23.699 from a great piece by Doug Young called Investing 00:00:23.699 --> 00:00:27.140 in Gold, Should I Buy Coins or Bars? He's got, 00:00:27.140 --> 00:00:29.660 what, 20 plus years in finance and precious metals? 00:00:29.859 --> 00:00:31.899 That's right, a really solid source, someone 00:00:31.899 --> 00:00:34.460 who... definitely knows his stuff. For sure. 00:00:34.719 --> 00:00:36.939 So our mission today, really, is just to pull 00:00:36.939 --> 00:00:39.640 out the key differences, the pros and cons, the 00:00:39.640 --> 00:00:41.679 things you need to weigh up to figure out if 00:00:41.679 --> 00:00:44.179 coins or bars make more sense for your own situation. 00:00:44.320 --> 00:00:46.320 Sounds good. Where should we start? Maybe just 00:00:46.320 --> 00:00:49.520 the physical basics. Yeah, good idea. What are 00:00:49.520 --> 00:00:51.880 we actually looking at? What is a gold bar versus 00:00:51.880 --> 00:00:54.600 a gold coin? OK, so gold bars, Doug points out, 00:00:54.619 --> 00:00:57.200 they're usually the larger ones. often rectangular, 00:00:57.799 --> 00:01:00.039 and the size can vary quite a bit. You know, 00:01:00.140 --> 00:01:02.060 from maybe one ounce up to a kilogram, sometimes 00:01:02.060 --> 00:01:06.099 even bigger. Whoa, a kilogram bar? That's substantial. 00:01:06.299 --> 00:01:10.159 It is. And that size obviously impacts how you'd 00:01:10.159 --> 00:01:12.799 store it and move it around. Think like handling 00:01:12.799 --> 00:01:15.260 a brick versus something smaller. Yeah, good 00:01:15.260 --> 00:01:17.879 visual. So coins then? Coins are generally smaller, 00:01:18.439 --> 00:01:21.400 round, usually. often an ounce or even less, 00:01:21.760 --> 00:01:23.840 like fractional ounces sometimes. So much more 00:01:23.840 --> 00:01:26.040 portable, you'd imagine. Definitely more portable. 00:01:26.340 --> 00:01:29.260 Storing a few coins is, well, a different challenge 00:01:29.260 --> 00:01:31.920 than figuring out where to put a big bar. Right. 00:01:31.959 --> 00:01:34.319 OK, so that physical difference must play into 00:01:34.319 --> 00:01:37.200 things like value in selling them, right? Liquidity. 00:01:37.439 --> 00:01:40.420 Absolutely. That's the next big point Doug makes. 00:01:41.040 --> 00:01:43.099 Both are considered liquid. You can sell them 00:01:43.099 --> 00:01:44.939 pretty easily. There are established markets. 00:01:44.939 --> 00:01:47.840 OK. But the smaller size of coins gives them 00:01:47.840 --> 00:01:50.989 an edge in flexibility. Big time. How so? What 00:01:50.989 --> 00:01:53.750 does that mean, practically? Well, imagine you 00:01:53.750 --> 00:01:55.629 need some cash, but you don't want to sell all 00:01:55.629 --> 00:01:58.930 your gold. Okay. Doug uses this example. It's 00:01:58.930 --> 00:02:01.549 much easier to sell, say, two or three one -ounce 00:02:01.549 --> 00:02:05.290 coins than it is to, like, saw off a piece of 00:02:05.290 --> 00:02:07.849 a kilogram bar. Uh -huh. Yeah, I can see that. 00:02:07.890 --> 00:02:10.710 You can't really sell part of a bar easily. Exactly. 00:02:10.990 --> 00:02:14.069 So coins let you liquidate just a portion of 00:02:14.069 --> 00:02:16.219 your investment much more easily. That makes 00:02:16.219 --> 00:02:18.979 a lot of sense. Okay, so flexibility is a big 00:02:18.979 --> 00:02:21.580 plus for coins there. What about the price you 00:02:21.580 --> 00:02:25.840 pay? The premiums. Ah, premiums. Good point. 00:02:25.939 --> 00:02:28.580 So the premium is just that extra bit you pay 00:02:28.580 --> 00:02:30.699 over the actual spot price of the gold itself. 00:02:30.780 --> 00:02:33.159 Right, the manufacturing, distribution, dealer 00:02:33.159 --> 00:02:35.939 costs, all that. Yeah. And generally speaking, 00:02:36.219 --> 00:02:39.620 gold bars tend to have lower premiums. Oh, why 00:02:39.620 --> 00:02:42.780 is that? It's kind of like buying in bulk. It's 00:02:42.780 --> 00:02:45.280 often cheaper per unit. or per ounce, in this 00:02:45.280 --> 00:02:48.120 case, to make and sell one large bar than lots 00:02:48.120 --> 00:02:50.860 of small coins. OK, economy of scale. Exactly. 00:02:51.360 --> 00:02:53.759 Yeah. Doug even says, and I'm quoting here, if 00:02:53.759 --> 00:02:56.419 you prioritize gold purity in your investment, 00:02:56.680 --> 00:03:00.020 then bars may be a better option. The lower premium 00:03:00.020 --> 00:03:02.259 means more of your money goes directly into the 00:03:02.259 --> 00:03:05.460 gold itself. Gotcha. So bars are more cost effective 00:03:05.460 --> 00:03:07.599 if you're buying a decent amount and just want 00:03:07.599 --> 00:03:09.620 the gold content. Pretty much, yeah. But coins 00:03:09.620 --> 00:03:11.620 often have higher premiums, you said. They often 00:03:11.620 --> 00:03:13.870 do, yes. And that's usually because there's more 00:03:13.870 --> 00:03:15.650 to them than just the gold weight. Like what? 00:03:15.930 --> 00:03:18.430 Well, think about famous coins like the American 00:03:18.430 --> 00:03:22.009 Eagle or the Canadian Maple Leaf. They have designed 00:03:22.009 --> 00:03:25.310 sometimes historical significance. Ah, the collectible 00:03:25.310 --> 00:03:28.069 aspect. Exactly. There's often numismatic value, 00:03:28.409 --> 00:03:32.009 value based on rarity, condition, design, history 00:03:32.009 --> 00:03:34.680 layered on top of the gold value. So you're paying 00:03:34.680 --> 00:03:36.759 not just for the gold but for the coin itself 00:03:36.759 --> 00:03:39.639 as an object. Right. Which leads nicely into 00:03:39.639 --> 00:03:41.699 the advantages of coins that Dud talks about. 00:03:42.139 --> 00:03:44.340 That historical significance is a big one for 00:03:44.340 --> 00:03:46.860 some people. Holding a piece of history almost. 00:03:47.039 --> 00:03:49.219 Yeah. Some coins have been around for ages passed 00:03:49.219 --> 00:03:52.419 down. It has a different kind of appeal beyond 00:03:52.419 --> 00:03:54.879 just the investment side. And the collectible 00:03:54.879 --> 00:03:57.360 value you mentioned. Can that actually be significant. 00:03:57.479 --> 00:04:00.409 Oh definitely. Doug points out that rare or limited 00:04:00.409 --> 00:04:02.569 edition coins can sell for way more than their 00:04:02.569 --> 00:04:04.789 actual gold belt value. So it becomes like a 00:04:04.789 --> 00:04:07.590 dual investment gold and a collectible. Precisely. 00:04:07.669 --> 00:04:09.789 Yeah. And for some, it even turns into a hobby. 00:04:10.150 --> 00:04:13.689 You know, go to coin shows, auctions. Interesting. 00:04:13.849 --> 00:04:15.169 Oh, and we already touched on the flexibility 00:04:15.169 --> 00:04:17.269 advantage for coins, too. Yeah, worth repeating, 00:04:17.389 --> 00:04:19.810 though. Being able to buy or sell in smaller 00:04:19.810 --> 00:04:23.110 amounts is a huge plus. If you need cash quickly 00:04:23.110 --> 00:04:25.709 or want to invest gradually, coins make that 00:04:25.709 --> 00:04:28.110 much easier. Makes sense. OK, let's flip it then. 00:04:28.329 --> 00:04:31.230 What about the advantages of going for gold bars? 00:04:31.610 --> 00:04:34.149 Well, we mentioned purity. Bars are typically 00:04:34.149 --> 00:04:39.290 like 99 .99 % pure gold. Four nines, they call 00:04:39.290 --> 00:04:42.329 it. That's incredibly pure. It is. And as we 00:04:42.329 --> 00:04:44.269 said, they come in those larger weights, which 00:04:44.269 --> 00:04:46.110 is just more practical if you're looking to put 00:04:46.110 --> 00:04:49.290 a significant sum into gold. Buying 51 -ounce 00:04:49.290 --> 00:04:51.670 coins versus one 50 -ounce bar, for instance. 00:04:51.870 --> 00:04:54.730 Right. Simpler transaction, maybe? And crucially, 00:04:54.930 --> 00:04:57.259 those lower premiums we talked about. If your 00:04:57.259 --> 00:04:59.379 main goal is just maximizing the amount of pure 00:04:59.379 --> 00:05:01.680 gold you get for your money, bars are generally 00:05:01.680 --> 00:05:03.899 more cost effective, especially for larger purchases. 00:05:04.360 --> 00:05:07.180 So less markup per ounce. Exactly. And what about 00:05:07.180 --> 00:05:08.879 storing them? You said bars are bigger, which 00:05:08.879 --> 00:05:11.019 sounds like a disadvantage for storage. Well, 00:05:11.139 --> 00:05:13.980 yes and no. Doug actually points out their uniform 00:05:13.980 --> 00:05:16.980 shape, usually rectangular, can make them easier 00:05:16.980 --> 00:05:19.459 to store efficiently. Uh, like stacking bricks. 00:05:19.709 --> 00:05:22.209 Kind of, yeah. You can stack them neatly, potentially 00:05:22.209 --> 00:05:24.750 taking up less total space than the same value 00:05:24.750 --> 00:05:27.790 in, say, tubes of coins, especially if you have 00:05:27.790 --> 00:05:32.310 a lot. OK, I see. So for large quantities, bars 00:05:32.310 --> 00:05:34.629 might actually be more space efficient. Could 00:05:34.629 --> 00:05:36.629 be, yeah. So Doug gives this neat little summary. 00:05:37.129 --> 00:05:40.029 Bars usually have lower premiums, higher purity, 00:05:40.310 --> 00:05:44.170 larger sizes, but less collectible value. Generally 00:05:44.170 --> 00:05:47.050 higher premiums, purity can vary, but many bling 00:05:47.050 --> 00:05:50.189 coins are also very pure, smaller sizes, and 00:05:50.189 --> 00:05:52.470 potentially high collectible value. Okay, that's 00:05:52.470 --> 00:05:55.149 a clear breakdown. So how does someone listening 00:05:55.149 --> 00:05:58.449 decide? What factors should they weigh up? Doug 00:05:58.449 --> 00:06:00.610 Lee's had a few key things. First and foremost, 00:06:01.550 --> 00:06:04.189 what are your investment goals? Okay. Like long 00:06:04.189 --> 00:06:06.050 -term versus short -term. Yeah, exactly. Are 00:06:06.050 --> 00:06:08.129 you buying gold as a long -term safety net, a 00:06:08.129 --> 00:06:11.209 hedge against inflation, or are you maybe interested 00:06:11.209 --> 00:06:14.110 in shorter -term trading or hoping for that collectible 00:06:14.110 --> 00:06:16.110 value to grow? And how does that map onto bars 00:06:16.110 --> 00:06:19.529 versus coins? Doug suggests bars often make more 00:06:19.529 --> 00:06:22.470 sense for long -term holding. Buy it, store it. 00:06:22.540 --> 00:06:25.959 benefit from the lower premium. Coins, with their 00:06:25.959 --> 00:06:28.420 flexibility and potential collectible upside, 00:06:28.879 --> 00:06:31.420 might appeal more to shorter -term thinkers or 00:06:31.420 --> 00:06:33.360 collectors. Right. You've got to ask yourself 00:06:33.360 --> 00:06:35.339 why you're buying the gold in the first place. 00:06:35.480 --> 00:06:38.399 Absolutely. Then there are market trends. Always 00:06:38.399 --> 00:06:41.180 tricky to predict, though. True. We're not giving 00:06:41.180 --> 00:06:44.139 advice here, but Doug notes that gold often tends 00:06:44.139 --> 00:06:46.819 to do well when the economy looks shaky or there's 00:06:46.819 --> 00:06:49.660 geopolitical uncertainty. It's seen as a safe 00:06:49.660 --> 00:06:52.180 haven. Something to be aware of in the background. 00:06:52.439 --> 00:06:55.240 What else? Your budget, obviously. Bars, even 00:06:55.240 --> 00:06:57.600 small ones, need a bigger upfront investment, 00:06:57.759 --> 00:07:00.139 usually because of the size. Coins let you start 00:07:00.139 --> 00:07:02.899 smaller, buy fractionals even. So accessibility 00:07:02.899 --> 00:07:05.579 for smaller investors might favor coins. Generally, 00:07:05.720 --> 00:07:08.399 yes. And then storage again. We mentioned bars 00:07:08.399 --> 00:07:10.540 might be space efficient for large amounts, but 00:07:10.540 --> 00:07:12.699 maybe you only have a small home safe. Right. 00:07:12.819 --> 00:07:14.860 Storing a few coins might be easier in that case 00:07:14.860 --> 00:07:17.300 than finding space for even a single large bar. 00:07:17.680 --> 00:07:20.439 A safe deposit box might become necessary sooner 00:07:20.439 --> 00:07:24.660 with bars. Could be. And finally, liquidity needs. 00:07:25.120 --> 00:07:27.399 How quickly might you need to sell some of it? 00:07:27.680 --> 00:07:30.000 And we covered that coins are easier to sell 00:07:30.000 --> 00:07:31.939 off in smaller chunks if you hit an emergency 00:07:31.939 --> 00:07:34.839 or just need partial funds. Exactly. That flexibility 00:07:34.839 --> 00:07:37.759 can be really valuable. Okay. Before we summarize, 00:07:37.860 --> 00:07:40.839 maybe just a quick step back. Why is gold so 00:07:40.839 --> 00:07:43.839 popular anyway? People have valued it for millennia. 00:07:44.180 --> 00:07:46.680 Doug touches on this too. It's been a symbol 00:07:46.680 --> 00:07:49.829 of wealth. a reliable store of value forever, 00:07:50.089 --> 00:07:52.949 basically. Because it's rare, durable. Yep. It 00:07:52.949 --> 00:07:56.149 doesn't corrode. It has intrinsic value. And 00:07:56.149 --> 00:07:58.509 in modern finance, it's often seen as that safe 00:07:58.509 --> 00:08:01.110 haven. Right. Something to hold when other things, 00:08:01.310 --> 00:08:04.290 like stocks or currencies, seem volatile. A hedge. 00:08:04.629 --> 00:08:06.850 Exactly. A hedge against inflation, currency 00:08:06.850 --> 00:08:09.410 losing value. And it's tangible. You can hold 00:08:09.410 --> 00:08:11.509 it. That gives a lot of people a sense of security, 00:08:11.790 --> 00:08:14.029 especially in uncertain times. Definitely a psychological 00:08:14.029 --> 00:08:16.360 element there, too. OK, so let's try and tie 00:08:16.360 --> 00:08:18.500 this all together based on Doug Young's insights. 00:08:18.579 --> 00:08:20.879 Sounds good. It seems like both coins and bars 00:08:20.879 --> 00:08:22.899 definitely have their place. It's not like one 00:08:22.899 --> 00:08:25.980 is universally better. No, absolutely not. It 00:08:25.980 --> 00:08:28.220 really boils down to your goals, your budget, 00:08:28.279 --> 00:08:30.399 how much you're investing. So if someone's thinking, 00:08:31.019 --> 00:08:33.500 I want to put a larger amount away, focus on 00:08:33.500 --> 00:08:36.299 pure gold content, get the best price per ounce 00:08:36.299 --> 00:08:39.100 and store it efficiently long term. Then gold 00:08:39.100 --> 00:08:42.159 bars probably tick those boxes best, according 00:08:42.159 --> 00:08:44.860 to Doug's analysis. OK. But if someone else is 00:08:44.860 --> 00:08:48.080 thinking, I want flexibility to buy and sell 00:08:48.080 --> 00:08:50.419 smaller amounts. I like the history or the look 00:08:50.419 --> 00:08:53.059 of coins. Maybe hope for some collectible value 00:08:53.059 --> 00:08:55.700 and need easier options for partial selling. 00:08:56.039 --> 00:08:57.960 Then gold coins seem like the better fit for 00:08:57.960 --> 00:09:00.700 that person. The key takeaway really seems to 00:09:00.700 --> 00:09:03.700 be understand these differences before you buy. 00:09:03.840 --> 00:09:06.659 Don't just jump in. Absolutely. Know what you're 00:09:06.659 --> 00:09:09.220 prioritizing. Is it cost per ounce? Is it flexibility? 00:09:09.399 --> 00:09:11.980 Is it collectability that helps guide the choice? 00:09:12.200 --> 00:09:14.639 Right. So just to recap Doug Young's main points 00:09:14.639 --> 00:09:18.259 one last time. Bars generally mean lower premiums, 00:09:18.480 --> 00:09:21.879 higher purity, larger units, easier bulk storage, 00:09:22.360 --> 00:09:25.299 but less flexibility and little collectible value 00:09:25.299 --> 00:09:28.759 in coins. Generally higher premiums, potentially 00:09:28.759 --> 00:09:31.580 collectible or historical value, smaller units 00:09:31.580 --> 00:09:34.000 offering flexibility in buying and selling. but 00:09:34.000 --> 00:09:36.340 maybe less cost -effective for pure bulk buying. 00:09:36.899 --> 00:09:39.080 OK. And ultimately, the decision rests on your 00:09:39.080 --> 00:09:41.720 personal investment plan, how much cash you have 00:09:41.720 --> 00:09:44.299 available, and your storage situation. Couldn't 00:09:44.299 --> 00:09:46.559 say better. And of course, Doug reminds us, and 00:09:46.559 --> 00:09:48.940 it's always good advice, diversify your investments, 00:09:49.240 --> 00:09:52.200 do your homework, and always, always buy from 00:09:52.200 --> 00:09:54.899 reputable dealers. Don't get caught out. Crucial 00:09:54.899 --> 00:09:57.779 advice. Absolutely crucial. So after exploring 00:09:57.779 --> 00:10:00.039 all this with Doug Young's help, maybe a final 00:10:00.039 --> 00:10:02.279 thought for everyone listening to Mullover. Yeah. 00:10:02.429 --> 00:10:04.809 Considering gold's history as a stable asset, 00:10:04.870 --> 00:10:07.610 but also its potential to appreciate, how might 00:10:07.610 --> 00:10:10.169 putting even a small slice of your portfolio 00:10:10.169 --> 00:10:12.990 into physical gold, whether it's coins or bars, 00:10:13.429 --> 00:10:16.070 fit into your overall financial picture and maybe 00:10:16.070 --> 00:10:19.730 add to your long -term security? That's a good 00:10:19.730 --> 00:10:21.610 question to ponder. It really brings it back 00:10:21.610 --> 00:10:23.929 to the individual strategy, doesn't it? Definitely 00:10:23.929 --> 00:10:24.629 food for thought.