Why are gold coins more expensive than gold bars of equivalent weight

[Guest]

hello,

Sorry for the newbie question. when i am comparing the prices between gold coins and gold bars, i noticed that gold coins are typically $10+ more expensive than gold bars. 

When i compare the sell back price, specifically, i noticed that the gold bars (PAMP) have higher sellback price than gold coins.

 

can anyone please explain this issue to me? if that is the case, would it be better for me to buy 1oz gold bars as opposed to coins

 

thank you once again  

[Shinus73]

Costs of production.

[Guest]

thanks i noted that

however, if coins have greater cost of production, how come the dealer buyback price is higher for the gold bar as compared to the coins? wont the premium of coins be reflected in the buyback price?

---

Added 0 minutes later...

thank you

[universalcurrency]

Simply this coins are more desirable, at least in most EU countries hence bars are priced higher.  Also if we are talking gov minted coins they are considered legal tender, are well recognised and quite often capital gains free in their country of origin as opposed to bars.

[Au79]

Cost of production is determine by various mints. Buyback price is determine by dealers who will determine how their business model should price against spot price. Dealers from different geographic will have their own business model of buyback price.

[ProfessorStacker]

2 hours ago, angus said:

thanks i noted that

however, if coins have greater cost of production, how come the dealer buyback price is higher for the gold bar as compared to the coins? wont the premium of coins be reflected in the buyback price?

---

Added 0 minutes later...

thank you

Mintage is another consideration. A coin that only has a mintage of 1,000 will carry a higher premium than one with a million mintage. 

[danmc82]

Because.

[TonyS]

Silver coins or bars. Other than continuing coin sets I have now, I’m going to buy “minted” bars in future. Plain and simply, my son and I don’t like poured silver (apogees to BYB).