Potential novice buyers generally have trouble understanding the basic distinction between gold bars and coins, making their investment a risky decision. Without understanding what the difference is between gold bars and coins, you may be putting your money in the wrong type of gold.
Obviously, gold is and will be a precious metal, however, its various forms are valued in different ways.
A typical belief is that gold bars are the most profitable and most likely the only type of "real" gold bullion obtainable, whereas circular pieces of gold coins are not bullion. This is due to the belief that coins are in restricted supply, so they are more expensive and their value is derived from the collector's point of view rather than the value of the gold itself.
This type of bullion is usually in the hands of government authorities and private banking institutions. They are a great and cheaper way to buy gold, but only if you have a use for them, for example in manufacturing. This type of bullion is not the best investment because the liquidation process is quite expensive, requires a lot of storage space, handling, refining, and other fees that other forms of bullion do not have. It is always easier to sell several smaller bars than one large brick.
Buying gold for gold implies that you are interested in buying a form of gold that you can trade. This type of investment thinking is related to bullion. You receive a recognized weight and fineness of the gold that you normally buy for the current market price, plus additional costs such as manufacturing, refining, and shipping, and delivery costs.
However, the value and liquidity of gold coins are better. You still benefit from the security of owning a piece of gold, but you can also benefit from the collectible value of the coin, while at the same time selling your asset is less difficult than selling a brick bar.