Which gold or silver bullion to buy?

Updated: September 22, 2019 / Home » Investment » Gold Invest

Interested to buy gold and silver for investment but do not know which type to buy? You have come to the right place! Basically, there are three categories of investment precious metal bullion like silver bullion. They are in form of bars, coins and collectables or limited edition.

Bullion Gold and Silver Bars

Bars are the most cost effective and recommended form to accumulate investment grade precious metal. They have the lowest premium and cost when compared to coins or collectables because these bars are in the rawest possible form. Bars, especially the casting type require minimum fabrication to make and this directly translates their costing.

Popular hallmark for bars are PAMP Suisse (Switzerland), Asahi Refining (Japan) or Johnson Matthey (British), Republic Metals Corporation (USA) and Perth Mint (Australia).

PAMP Suisse 50 gram Casting 999 Gold Bar
Asahi 999 Silver Kilo Bar (casting)
Johnson Matthey 1 oz Silver Bar (with Capsule)

Bullion Gold and Silver Coins

The definition of coins is bullion rounds that bare legal tender from country of origin. Widely popular gold and silver coins are American Eagles, Canadian Maples, Australian Kangaroos and Chinese Pandas to name a few.

Coins carry higher premium over bars because of the legal tender status. Most coins are beautifully designed, engraved and produced. These sophistications increase the cost because of the higher expectation and requirement to make.

Mints that make legal tender coins are mostly government owned, or government linked. Royal Canadian Mint is owned by the government of Canada. Perth Mint is owned by the State Government of Western Australian. China’s Mint, the maker of famous Panda coins is owned by the Republic of China government.

Although both gold and silver coins are tax exempted from GST, silver coins are subjected to 5% import tax and this immediately increases the cost for silver bullion coins. Gold coins are not subjected to import tax.

2018 RCM 1 gram 9999 Gold Coin (MapleGram25™ Design)
2018 Perth Mint Dragon Rectangle 1 oz Silver Coin (with Capsule)
2018 Chinese Panda 30 grams Silver Coin

Collectable Gold and Silver

Collectable gold and silver can be in various forms, in coins, bars or in odd form such as in shape of an animal or even a country. All collectables are limited in numbers although the numbers can range from being 1 to 500,000 pieces. The lower the number translates the higher the premium because of scarcity.

Collectables have unlimited upside potential. One example is the 2007 Mongolian Togrog Gulo Gulo Wolverine 1 oz silver coin. Limited with only 2500 pieces, it was sold for USD$100 when it was first. This coin was awarded the coin of the year in 2009 and the price immediately rocketed up the moon. Today, if you are able to find any, it would cost you USD$2,000 a piece.

Perth Mint is famous for their Chinese Lunar gold and silver coin series. Every year, the mint will release one animal design to represent the current horoscope year and this circle takes 12 years to completes, making the collection a 12-year continuous marathon!

We recommend collecting pieces that attracts your personal preference. There is no correct formula on how to buy collectables. No one would know if the collection you buy today may or may not explode with returns.

2018 Canada Maple Leaf 1 oz 30th Anniversary Silver Coin (with Capsule)
2018 Perth Mint Figure Eight Dragon Antiqued 2 oz Silver Proof Coin
2018 Puppies Beagle 1/2 oz silver Proof coin

Which Size and Which Weight?

In general, it is recommended to get bigger size for value. However, here are some factors that you want to consider before choosing your ideal size and weight. For gold and silver bar, they usually ranged from 1 gram to 1,000 oz (31.1 kg).

However, if the size is too big, it can be difficult to liquidate, transport or store. While 1 piece of kilo gold bar is cheaper than 10 pieces of 100 grams of individual bars, it is easier to split your 100 gram gold bars when you want to sell your kilo investment partially and separately.

We recommend investment gold bars between 10 grams to 100 grams. Silver bars, it is best to accumulate bars between 10 oz (0.31 kg) to 1 kilo (32.15 oz).

Coins are commonly in troy ounces (31.1 gram). We recommend buying coins in 1 troy ounce denomination because this is the most popular weight.

Where to buy?

Now that you know which types of bullion suit your preferences, it is equally important to know where to buy them.

Tip: Buy your bullion from a reputable dealer that offers a wholesale price (10-30% lower than retail gold shops!).

To find out more, please visit buysilvermalaysia.com

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