Bullion or Jewellery? Silver or Gold? Bars or Coins? At The Gold Shop, people often ask us the same questions about bullion, and if you’re new to bullion, it can easily feel overwhelming. That’s why we’ve put together this guide to cover what you should know before buying bullion.
Bullion refers to precious metals — most commonly high-purity gold and silver — bought for their metal content rather than for design or wearability like jewellery. It usually comes in the form of bars or coins, and its value is based on three main factors: weight, purity, and the current market price of the metal. For many people, bullion offers a simple, tangible way to diversify and think long term, without chasing quick returns.
Jewellery offers wearability and sentimental value, and even if a piece is broken or unworn, its metal value remains tied directly to the spot price on the day. At The Gold Shop, we check the spot rate daily, and the price per gram we offer when buying scrap jewellery is based on that rate.
We also price our pre-owned gold jewellery slightly over the spot price, meaning you’re paying a little more for the gold itself, but without the higher labour and design premiums found in newly manufactured jewellery. New pieces naturally include those additional costs.
Bullion, by contrast, is valued purely on its metal content and the current spot price, offering clarity and simplicity — although premiums still apply. Ultimately, it comes down to what you value more: wearability or simplicity.
A premium is simply the amount paid above the metal’s spot price. This covers manufacturing and related costs. If you’re looking to keep premiums lower, larger bars usually work out cheaper per gram, as they cost less to produce than lots of smaller pieces.
For example, buying a single 1kg gold bar is typically around 1% cheaper than buying the same amount of gold split across smaller bars. The trade-off is flexibility — larger bars suit long-term holding but are less convenient if you want to sell only part of your investment later. At smaller sizes, around 1oz and under, premiums often get smaller, and in some cases coins can even be cheaper than bars.
Although a 1kg gold bar and around 30 one-ounce gold coins contain almost the same amount of gold, the difference usually comes down to how you store and manage them. A single bar is one solid unit, typically kept in a safe. Coins offer greater flexibility — they can be stored in different places and sold individually if needed, making them easier to manage over time.
In simple terms, it comes down to what matters most to you: lower premiums with larger bars, or flexibility with coins.
When The Gold Shop was founded in 1987, the precious metals market looked very different. Silver averaged around £3.50 per ounce at the time. By 22/01/26, the silver spot price had reached £71.94 — an increase of nearly 2,000%.
Gold shows a similar long-term rise. In 1987, gold averaged around £263.56 per ounce. As of 22/01/26, the gold spot price stood at £3,667.41, representing an increase of over 1,290%. While prices naturally rise and fall, these figures highlight the long-term resilience precious metals have shown over time.
After seeing those numbers, it’s natural to wonder whether silver or gold is the better option — but it really comes down to what you’re looking for.
Gold is often chosen for its stability, compact size, and long-term store of value, making it easier to hold and store. Silver has a lower entry point and tends to experience larger price swings. It can offer greater movement, but also comes with more volatility and requires more storage space for the same value. Many people choose a mix of both, depending on your goals and comfort with price movement.
If you’re thinking about buying or selling bullion, you’re not alone. We regularly speak to people who are unsure whether to sell, hold, or rebalance. Our approach is simple: clear explanations, no pressure, and honest guidance built on decades of experience.
We offer competitive, market-led prices when buying bullion, and the same transparency when supplying gold or silver bars and coins. Whether you’re looking to buy, sell, or simply explore your options, you’re always welcome to get in touch for straightforward, fairly priced advice you can trust.
