People who decide to invest in physical gold and silver will face a choice when the time to buy arrives: should I opt for bullion bars or coins?

Both have their own advantages and it will often be a case of choosing which type of bullion is most suitable for your specific needs.

Here are four reasons why precious metal coins could be a great investment option for your portfolio.

1/ Some coins are legal tender

In Australia, some gold and silver coins are still technically legal tender. The Australian Gold Nugget and the Australian Silver Kookaburra, both produced by the Perth Mint, currently have legal tender status.

While bullion coins are rarely used for this purpose in practice, it can be an attractive feature for people genuinely concerned about the fragile nature of today’s financial markets.

2/ More active overseas trading

The overseas market for buying and selling coins tends to be more active than for bars, with a greater number of dealers, jewellers and individuals trading in coins.

While premiums are higher than when investing in bars, due to differences in the manufacturing process, you are much more likely to find interested parties for coins.

As such, coins may be better for people who are keen to explore bullion markets outside of Australia.

3/ More variety

There are many varieties of gold and silver coins available, meaning knowledgeable investors could potentially enjoy bigger gains on their purchases provided they keep up to date with the latest trends.

Some investors also argue that coins are more attractive than bars due to the various intricate designs on offer, although that is a matter of personal preference.

4/ Flexibility

Both coins and bars come in a variety of weights, so you should have the flexibility you need whichever type of bullion you decide to invest in.

Bars are typically available at heavier weights, which may be preferable for large-scale investors. However, a 1kg bar is difficult to break down into smaller quantities if required.

Storing bullion

Regardless of whether you opt for gold and silver coins or bars, it is vital to consider effective bullion storage. While keeping your investment in a home safe or similar hiding spot may be tempting, there are considerable risks involved.

Alternatively, Guardian Vaults offers 24/7 state-of-the-art security that will ensure your investment remains totally protected. Our range of storage options means you can have a safety deposit box for smaller amounts of gold and silver all the way up to large vaulting servicesfor bigger quantities.