Are Gold Bars Less Expensive Than Gold Coins? A Comparison of Costs

If you’ve ever compared gold bars and gold coins at a dealer or online store, you might have noticed something odd. Both can have the same purity—often 24-karat or 99.99%—but their prices don’t always line up. So, what’s behind the difference? Read here!

The short answer is: gold bars are usually cheaper than gold coins when it comes to price per ounce. That’s because gold bars carry lower premiums. A premium is the extra cost added to the market (or “spot”) price of gold. It covers production, packaging, shipping, dealer markup, and other costs. With bars, especially larger ones, those added expenses are spread across more gold, which brings the overall cost per ounce down.

In other words, if you’re looking to buy the most gold for the lowest price, bars are generally the smarter pick. They’re ideal for bulk buying or building up a solid foundation of physical gold without paying extra for design or collectibility.

Gold coins, on the other hand, aren’t just chunks of metal. They’re often miniature works of art. Coins like the Gold Britannia or the South African Krugerrand are produced by national mints, feature intricate designs, and sometimes come in limited editions. This attention to detail, along with their legal tender status, adds to the appeal—and the premium.

Coins also offer more flexibility. They come in smaller sizes, often as low as one-tenth of an ounce. This makes it easier to buy gradually or sell small portions when needed, instead of parting with a large bar. That flexibility can be a big advantage for everyday investors.

It’s also worth noting that not all bars and coins are created equal. A plain 1oz bar from a trusted refiner like PAMP or Valcambi might cost less than a rare or commemorative coin. But the reverse can also be true—some coins are mass-produced and may end up costing less than a premium bar with high-end packaging or a custom design.

And then there’s tax. In countries like the UK, gold coins such as the Britannia are exempt from Capital Gains Tax because they are legal tender. Gold bars don’t always enjoy the same benefit, depending on the jurisdiction. That tax edge can make coins a more attractive long-term choice despite the higher upfront cost.

So, are gold bars less expensive than gold coins? Typically, yes—if you’re comparing based on the pure gold content alone. But the better choice depends on your goals. If you’re looking for value per ounce, bars win. If you prefer flexibility, legal tax advantages, and a bit of artistic charm, coins may be worth the extra cost. Many investors end up owning both to balance efficiency with versatility.