Dubai has been known as the City of Gold for many years, attracting investors and jewellery fans from around the world. Gold – whether you are purchasing for investment, gifting, or saving, gold is one of the world’s most secure assets. A common question arises when wanting to invest in gold – gold coins or gold bars?

Let’s read more about the differences and decide which is a better option to invest in when you are in Dubai.

Understanding Gold Coins

Gold coins are small, round pieces made of gold and minted by government or private refineries. Their weight is usually given in 1 gram, 5 grams, 10 grams, or 20 grams. These coins usually have wonderful designs, like kings, national symbols, or landmarks.

Gold coins in Dubai are in huge demand for residents and tourists alike. They are very easy to buy and sell and can be bought from the gold souks, jewellery shops, and online gold trading platforms. The price of gold coins in Dubai is based on the international gold price, purity (22K and 24K), and the making charges from the seller.

Understanding Gold Bars

Gold bars are solid rectangular blocks of pure gold, usually larger than coins. They are produced by refineries and are available in various weights, starting from 10 grams to 1 kilogram or more. Unlike coins, gold bars have no decorative designs—the implication being that they are made for investment only. 

A gold bar typically comes with lower making charges compared to a coin and therefore is a bit cheaper based on the weight of gold per gram. Many serious investors and traders take to purchasing gold bars because the bulk options represent better value for you.

Price Difference Between Gold Coins and Gold Bars

Gold coins and gold bars differ primarily in price. All gold coin prices in Dubai and gold bar prices are established according to the same market price in international trading. However, the associated making charges, or minting costs, differ between coins and bars.

Gold coins are more expensive because they take longer to create, entail more craftsmanship, and may come with enhanced packaging. Gold bars, being simpler in design and easier to manufacture, provide the investor the maximum volume of gold for their cash investment.

For example, purchasing gold coins of 100 grams may be marginally higher in price than would be a purchase of a single 100-gram gold bar. This price difference will be more pronounced when you invest larger amounts.

Liquidity and Flexibility

Gold coins are extremely liquid, so selling them is easier, at least compared to selling your whole gold exposure. You could even take a few coins out and turn them into cash if you need to. 

Gold bars are slightly less liquid. Whereas, larger bars (1 kilogram, for example) can be harder to sell because you can’t just sell a fraction of it; you have to sell the whole 1-kilogram bar to obtain its value. Smaller gold bar options (10g, 20g, and 50g versions) are a better option to provide you a little more flexibility and smaller premiums.

Bottom line, gold coins allow for more flexible resale liquidity, but gold bars can conserve premiums and be a good long-term hold.

Storage and Safety

Gold coins and gold bars, both types of investment vehicles, need to be stored in a safe place. Many people in Dubai choose to store their gold in a bank safe deposit box or private vaults. Gold bars can be kept in a more compact way because they’re larger than gold coins. One gold bar can be worth the same as hundreds of gold coins and can be stacked up in less space. 

On the contrary, gold coins usually need to be stored in individual holders, and sometimes they take up more space (if you have many of them), and they’re lighter and easier to carry around or give as presents. 

If you are an investor that is investing for the long term and wants to store your gold selectively, then gold bars are a more convenient purchase. But if you’re someone who is investing for personal use or for a small investment, and ease of use is more important to you, then gold coins would be easier to handle.

Purpose of Investment

Your decision may also vary based on your planned use of the gold, either an actual coin or an actual bar of gold. However, if you are purchasing gold for storage and/or as a gift, then the obvious choice would be a coin. Coins have some sort of a regal quality to them; they can be purchased in smaller amounts, and coins are often given as gifts – such as for weddings, holidays, or birthdays. If your intention is simply to buy gold as either an investment for profit or as an inflation hedge, then a bar of gold is a more prudent choice overall because it will achieve greater value per gram. Serious gold investing is done in the form of a bar because typically the orders for the gold will be larger amounts. In Dubai there are many banks and jewellery shops that sell coins and/orbars of gold. It is merely a happy accident of geography that makes it both a very convenient and easy way to invest in gold. Ultimately, it will be your own desire for the gold that the decision will come down to.

Buying Gold in Dubai

Dubai ranks among the world’s best locations to purchase gold due to its free tax policy as well as the stringent quality requirements. Gold souks and certified stores in the city offer gold according to international pricing, and they will ensure you are receiving authentic gold at reasonable prices. 

When purchasing any gold, always look first to see if its purity is at least 22K or 24K, its hallmark certification, and the current gold rate in the market. You can look prior online to check the prices of the various types (i.e., short-term trading in the market and then precious coins vs. bullion). In doing so, when you decide whether you want to buy coins or bullion, do your best to buy these from a reputable jeweller or authorised dealer.

Which is Better: Gold Coins or Gold Bars?

There is no wrong answer; each option has its respective pros and cons. 

If flexibility and the ease of selling or gifting are important to you, then gold coins are the way to go, and they usually appeal to smaller investors or as gifts because of the design. 

If you plan to invest larger amounts and avoid making charges, and/or you’re looking for long-term investing, and/orbulk storage, then gold bars are better. 

If you’re a beginning gold investor, you can start with a few coins, and when your budget increases, switch to gold bars. You will see and hear many investors in Dubai that will even have both coins and bars to balance the flexibility and dollar value of their purchases.

Final Thoughts

Ultimately, gold coins and gold bars are both excellent investment choices in Dubai. It ultimately comes down to your personal preference regarding the purpose of your investment, your budget, and how liquid you want your investment to be. 

If you like something small, pretty, and easy to trade, then gold coins are for you! 

If you want lower premiums, total value, and long-term returns, then you’ll want to go with gold bars. 

In any case, always purchase from a reputable source that guarantees purity and authenticity. 

Buying From CKS Gold 

If you want to purchase genuine and certified gold in Dubai, you can trust CKS Gold. CKS Gold offers a large selection of gold coins & gold bars at competitive prices, with a guarantee of purity and transparency. Whether you are a first-time buyer or a seasoned investor, CKS Gold simplifies and enhances your gold investment experience.