I prefer coins because coins have reached collectible status just like stamps, sports trading cards, lego sets, etc. Bars have not. So the price of a coin is it’s melt value + collector’s premium. This premium can grow over time and also fluctuates.

For example, you can purchase the 2016 gold panda for about $50 premium. However, per Ampex.com, you can purchase the 2015 gold panda for about $350 over spot and the 2014 gold panda for $500 over spot. If I were to buy a bar for $20 over spot today, it will most likely be just $20 over spot years from now. I am willing to pay the extra premium for coins if I feel that premium will increase over time. One reason for this that there are limited mintages of some bullions and rarity factor generally increases with time.

But I find that this is also true with bullions which I think are not meant to be collectible. They become collectible anyways like the gold American eagle. I am talking about the “regular” gold eagle not the proof or burnished versions. I believe they are generally minted to demand (not so sure this but it looks like it) but still their premium tends to increase gradually. I think this true as long as there isn’t an abnormal spike in sales.

In times when gold is out of favor, not much gold eagles were sold. In 2007, 140,016 1 oz regular gold eagles were minted. In 2009 and 2010, 1,493,000 and 1,125,000 were minted, respectively. I think this was time when gold was on the rise and reached a peak in 2011. If you are discipline about your buying and buy whether gold is in favor or not you may get lucky and end up with a “key” date. It may be that 2007 becomes a “key” date that a collector has got to have if he’s to complete his collection.

If you can find the right buyer you can realized much of this collector’s premium.