If you’ve been browsing 1OZ Gold Britannia gold dealers or checking prices online, you’ve likely noticed that gold bars and gold coins can have the same purity but different price tags. This difference can be confusing, especially if you're new to precious metals. So why do bars often cost less, and what should you consider before making a purchase?
The biggest reason for the price difference is the premium. This is an extra charge added to the market (or "spot") price of gold. It covers manufacturing, packaging, shipping, and the dealer’s margin. With gold bars, especially larger ones, these costs are spread over more gold. For example, the cost of producing a 1-kilogram bar is much lower per gram than producing many 1-ounce bars or coins. As a result, gold bars typically offer a lower cost per ounce, making them the better choice if your goal is to accumulate as much gold as possible for your money.
Gold coins, such as the Gold Britannia or Krugerrand, tend to carry higher premiums. This is because coins are not just pieces of gold—they also have collectible and historical value. They're made by government mints and often feature intricate designs, national symbols, or commemorative details. Some coins have limited mintage runs, which increases their desirability among collectors and can push their price well above the value of the gold they contain.
Another difference is flexibility. Coins come in a range of sizes, including fractional denominations like 1/2oz, 1/4oz, and 1/10oz. This makes them useful for people who want to buy or sell in small amounts. Gold bars also come in various sizes—from 1g to 1oz to several kilos—but the most cost-effective bars tend to be larger. If you only want to sell part of your gold later, it’s easier to part with a single coin than slice off a chunk of a big bar.
Not all coins and bars are equal, either. A standard 1oz gold bar from a reputable brand will usually cost less than a rare collector coin. But some designer or limited-edition bars might have high premiums of their own. It's important to look closely at the specific products you're buying and not just assume one type is always cheaper.
Taxes also come into play. In the UK, gold coins like the Britannia and the Sovereign are exempt from Capital Gains Tax because they are legal tender. Gold bars generally don’t qualify for this exemption. This could make a higher-priced coin a better long-term choice if you’re planning to sell later and want to avoid extra tax costs.
To sum it up, gold bars are usually cheaper per ounce and are great for stacking larger amounts of gold with lower overhead. Gold coins may cost more, but they come with their own perks—better liquidity, potential tax savings, and collectible appeal. Your decision should depend on whether your priority is metal weight alone or a combination of flexibility, aesthetics, and added value.