Below is an interesting article by CBS on the differences between Gold bars and Krugerrand coins.
- Gold bars can be simpler to manufacture and could therefore be closer to the spot price.
- Krugerrand coins are far more intricate by design and would be more expensive to manufacture.
- Gold bars also come in higher purity over their counterparts.
Krugerrands can also be considered collectors items, which can make them highly speculative.
- You would therefore possibly pay a collectors premium on top.
- This in turn would also mean that if you didn’t store your coins correctly or look after them properly, you could possibly lose collectors value.
- The Krugerrand can also be susceptible to geopolitical factors beyond our control.
In my mind I am reminded of what happened to Zimbabwe’s Marange Diamonds, which can be as much as 25% – 40% cheaper than the rest of the market.
What makes the Auvesta model appealing to me, is that I am able to buy metals in small increments at a price very close to spot price. Storage is not an issue as my metals are kept offshore and I have access to audited reports verifying safe storage of my metals and I am not at risk to potential political factors.
My stored metals come with a buyback gaurantee so that also makes them highly liquid.
Source: CBS