For most retirement investors, government-minted gold coins (American Gold Eagle, American Gold Buffalo, Canadian Maple Leaf) are the best balance of liquidity, premium, and IRA eligibility. Gold bars (1 oz, 10 oz, 1 kilo) carry lower premiums but are harder to sell in partial amounts and have more restricted IRA eligibility. Buy coins for flexibility; buy bars only if you're investing $50K+ and want to minimize premium drag.
Premium over spot is the most measurable difference. American Gold Eagles typically trade at 5-8% over spot when buying from a dealer; American Gold Buffalos at 4-7%; generic 1 oz gold bars (PAMP, Credit Suisse, Valcambi) at 2-4%. Lower premium = more gold for your dollar. For a $100K purchase, the premium difference between Eagles (7%) and bars (3%) is $4,000 of upfront cost.
Liquidity favors coins. Government-minted coins (Eagles, Buffalos, Maple Leafs, Krugerrands) are universally recognized and accepted by virtually every dealer worldwide. Generic 1 oz bars are also liquid but typically sell at slightly lower prices than coins on resale. Larger bars (10 oz, 1 kilo) are less liquid because they require a buyer with corresponding capital, fewer dealers will quote them and resale spreads are wider.
IRA eligibility is more restrictive for coins than you'd expect. Most government-minted bullion coins ARE allowed (Eagles, Buffalos, Maple Leafs, Australian Kangaroos), but pre-1933 US gold coins are NOT IRA-eligible. Numismatic and 'collectible' coins of any kind are NOT IRA-eligible. Most bars from approved refiners (PAMP, Credit Suisse, Valcambi, Asahi, Republic Metals) ARE eligible if they're 99.5% pure. The IRS-approved list is specific, verify with your custodian before buying.
Practical recommendation by investment size: Under $25K, buy 1 oz Gold Eagles or Buffalos for liquidity and recognizability. $25K-$100K, mix Eagles/Buffalos with some 1 oz bars to lower average premium. $100K+, consider 10 oz bars for the lowest premium, paired with coins for partial-sale flexibility. Above $250K, work with a advisor on the structure; at that level, a mix of physical and ETF exposure usually beats all-physical.
Key facts
- American Gold Eagle premium: typically 5-8% over spot
- American Gold Buffalo premium: typically 4-7% over spot
- Generic 1 oz gold bar premium: typically 2-4% over spot
- 10 oz / 1 kilo bar premium: typically 1-3% over spot
- IRA-eligible coins: Eagles, Buffalos, Maple Leafs, Australian Kangaroos (most modern bullion)
- NOT IRA-eligible: pre-1933 US gold, numismatic/collectible coins, jewelry
- Approved bar refiners: PAMP, Credit Suisse, Valcambi, Asahi, Republic Metals
What's the difference between American Gold Eagle and American Gold Buffalo?
Both are US government-minted, IRA-eligible, and widely recognized. The Eagle is 91.67% pure (22-karat) with a copper/silver alloy for durability; the Buffalo is 99.99% pure (24-karat). Same weight (1 oz of gold), same liquidity. Buffalo premiums are typically slightly lower because Eagles have stronger collector demand. For pure investment purposes, they're nearly equivalent, pick whichever has the lower premium at the time of purchase.
Should I buy fractional gold (1/2 oz, 1/4 oz, 1/10 oz)?
Generally no, except for specific use cases. Fractional coins carry meaningfully higher premiums, a 1/10 oz Gold Eagle typically trades at 12-18% over spot vs 5-8% for the 1 oz. The premium per ounce of gold is roughly 2-3x higher in fractional form. Buy fractional only if you specifically want gifting denominations or believe you may need to sell small amounts in an emergency. For investment purposes, 1 oz coins or bars are far more efficient.