Kapitola 7 Coins or bars?

Investment metals are most commonly available in two basic forms. These are coins and bars/ingots. Both forms have their pros and cons that you need to properly balance when building your investment portfolio.

The first step is to consider the amount of money you have for an investment in precious metals. If you have several thousand CZK available, your options are quite limited. The choice will certainly be investment silver coins, which we can get around five hundred CZK/piece. For example, silver coins such as American Eagle, Maple Leaf, Kangaroo, Krugerrand, Britannia and Philharmoniker. 

If you have tens of thousands CZK available for investment in precious metals, then you should certainly not only invest in silver coins. We offer silver investment bars (in multiples of ounces, as we explained in the previous chapter) such as 10 oz RCM and Sunshine Mint. If you have a purchase amount of up to CZK 50,000, it is advisable to choose a ratio between silver coins and silver bars in a ratio of approximately 1:1. The resulting portfolio will then meet both liquidity requirements and appropriate diversification across various types of silver. A smaller gold bar (5 grams) could also be represented in the portfolio.

With an investment of around CZK 400,000 you can go in two ways. On the one hand, we can choose only silver investment coins - approx. 500 pieces or 10 oz silver ingots - appox. 50 pieces, which will give you a solid quantity discount (see details in the above categories). 

The second option, if we intend to turn it into an investment silver of about CZK 400,000, is to divide the purchase between coins and ingots, in a ratio that is already in favor of silver bars. The proportion of coins in such a portfolio should be around 30-40%. In the portfolio up to CZK 400,000, the gold ingots will be represented at a minimum, we may also consider buying one or two gold coins.

With an investment plan of between CZK 500,000 and CZK 1 million (and this is the most typical volume of precious metal portfolio), we are choosing a smaller amount of silver coins (approx. 20-30%) and a majority of silver ingots. We can choose between 10 oz silver ingots (usually RCM or Sunshine Mint) and we recommend also RCM or Johnson Matthey bars. Gold in the form of ingots (10g or 50g) or coins should not be missing in the portfolio.

With an investment of between one and two million crowns, the previous recommendations apply. However, it is advisable to hold a larger weight ratio of 10oz ingots compared to 100 oz ingots. The reason for this is the high liquidity of 10 oz ingots. Although the portfolio of up to two million crowns is perceived by the Czech investor as large, it is still a relatively small amount of investment in terms of the larger market. A truly large amount of investment (from CZK 4 million higher) is common in Western countries.

On the other hand, in the portfolio of more than CZK 4 million, the ratio of coins to ingots will be reversed in favor of 100 oz, of which more than half the amount in the investment portfolio exceeds CZK 4 million. Gold bars are represented in 50g or 100g and include gold coins (including high-value proof American Gold Buffalo coins).

We do not recommend too much investment in gold because of the high volume of money in one bar. Even a small gold bullion or gold coin binds a fairly large amount, thus limiting the possibility of gradual sale. Of course, gold should also be reasonably represented in the precious metal portfolio, albeit to a lesser extent with regard to the above.

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