Gold coins offer more flexibility with 1/10 oz options starting around $350-400, while the smallest practical gold bars (1 gram) cost about $100-120. However, fractional products carry higher premiums—up to 15% for 1/10 oz coins versus 5-7% for 1 oz coins. For bars, 1 oz is the sweet spot for balancing premiums (2-4%) with affordability at roughly $3,400. Most investors find 1 oz coins or bars optimal for their first purchase.

Both IRA-eligible coins and bars must meet the same 99.5% purity requirement (American Eagles are specifically exempted). The choice depends on your strategy: bars minimize costs with 1-3% premiums, maximizing gold ownership within contribution limits. Coins offer future flexibility if you take distributions, as they're easier to liquidate partially. Most IRA investors choose a mix: 70-80% in bars for efficiency, 20-30% in coins for flexibility.

Both track gold spot prices closely, but sovereign coins like American Eagles and Canadian Maple Leafs typically maintain tighter bid-ask spreads during volatility. In the March 2020 COVID crash, coin premiums spiked to 10-15% while bar premiums reached 5-8%, but coins remained more liquid at local dealers. Generic bars may see wider spreads during stress periods. For crisis protection, recognized sovereign coins offer marginal advantages despite higher initial costs.

Professional vault storage charges by value (typically 0.5-1% annually), so costs are identical for $50,000 in coins or bars. However, bars' compact size often allows smaller safe deposit boxes—a 3x5" box holding 10 kilos of bars might cost $50/year versus $150/year for a larger box needed for equivalent coins in tubes. Home safe requirements also differ: coins spread across multiple small safes offer better security than one large safe for bars.

Standard bullion coins and bars trade purely on gold content—don't expect numismatic appreciation. However, certain coins develop modest premiums: first-year issues, final-year designs, or low-mintage years might gain 5-10% premiums over time. Proof coins aren't investments due to 20-40% initial premiums rarely recovered. Vintage bars from defunct refiners occasionally attract collectors, but this remains speculative. Stick to bullion products for investment purposes.

Major sovereign coins sell instantly at any precious metals dealer worldwide. Gold bars from recognized refiners (PAMP, Credit Suisse, RCM) also enjoy excellent liquidity but may require verification. Local coin shops prefer coins for retail resale, while online dealers and refiners readily buy both. Selling 100 oz of Eagles might take minutes; selling a 100 oz bar might require shipping to a major dealer. For amounts under 10 oz, coins offer superior convenience.

Legal tender coins often face fewer restrictions when traveling internationally. American Eagles, Canadian Maple Leafs, and other sovereign coins are currency, potentially simplifying customs declarations. Bars are commodity imports subject to different rules. However, most countries require declaration of either form above certain values (typically $10,000). Some nations (like India) tax gold imports heavily regardless of form. Always research destination country regulations before traveling with precious metals.

Gold coins offer practical advantages for inheritance. Heirs can easily value, divide, and liquidate coins without expertise. A collection of 50 one-ounce Eagles divides simply among multiple beneficiaries. Large bars complicate equal distribution and may require selling to divide estates. Coins' universal recognition helps heirs avoid dealer exploitation. Document all purchases with receipts to establish cost basis for heirs' tax purposes—the IRS grants stepped-up basis at death.

Avoid both for investment purposes. Proof coins carry 20-40% premiums that markets rarely value upon resale—you'll typically receive only bullion value. "Proof-like" or "special edition" bars with designs command 5-10% premiums but trade as regular bars later. These products target collectors, not investors. The extra cost buys aesthetics, not investment value. Stick to standard bullion products unless you're collecting for enjoyment rather than financial returns.

Generally, bars become cost-effective at investments above $25,000. Below this, the flexibility of coins often outweighs the 2-4% premium difference. At $25,000, saving 3% equals $750—meaningful money. At $100,000+, bar savings of $3,000-4,000 significantly impact long-term returns. However, always maintain some coins for liquidity. A typical transition: under $25k (100% coins), $25-50k (50/50 split), $50-100k (70% bars), over $100k (80%+ bars).