Gold Bullion vs. Gold Coins: What’s the Best Investment in 2025?

If you’re considering buying physical gold, one of the first decisions you’ll face is: Should I invest in bullion bars or gold coins? The answer depends on your goals, budget, and how flexible you want your investment to be.

Let’s break it down.

What’s the difference?

• Gold bullion bars are typically heavier and often come with lower premiums (fees over the spot price). They’re ideal if you’re making a larger investment in one go.

• Gold coins are smaller, easier to sell in portions, and in the UK, some coins like Britannias and Sovereigns are VAT- and Capital Gains Tax (CGT) exempt.

Tax advantages of gold coins in the UK

One of the biggest benefits of investing in UK-minted gold coins is the tax treatment:

• No VAT on investment-grade gold coins.

• CGT exemption on British legal tender coins, such as Britannias and Sovereigns.

This means you can sell your coins in future at a profit without paying any capital gains tax — making them very attractive for UK investors.

Liquidity and flexibility

Gold coins are easier to sell in small amounts. Need to release some funds? You can sell off a few coins rather than a whole bar. Coins also tend to appeal to a wider market, including collectors and first-time buyers.

On the other hand, bars may offer better value per gram for larger investors and are often chosen for long-term storage.

Which is best for you?

• Choose coins if you want tax efficiency, flexibility, and ease of resale.

• Choose bullion bars if you’re making a larger purchase and want the best price per gram.

Our take

Both have their place. Many of our clients choose to hold a mix — coins for flexibility, and bars for value.

To find out more, you can book a free call with our team here to ask questions.