Fractional gold coins weigh less than a troy ounce. When you buy bullion coins determine if they are available in smaller sizes. For the most part, most gold bullion coins are available in fractional sizes ranging from 1/2nd of an oz, 1/4th oz and up to 1/20th oz.
Popular fractional gold coins
There are some fractional gold coins that are more popular than others. Remember that in the world of trading gold bullion, demand or popularity can push the price of the gold coins up. There are basically two popular fractional gold bullion coins that are easy to liquidate all around the world.
- The American Gold Eagle coins.
These coins are available in 1oz., half an ounce, a a quarter of an ounce and a tenth of an ounce sizes.
2. The Canadian Maple Leaf
The Royal Canadian Mint produces its signature Maple leaf bullion coins in a variety of fractional price going as far as 1/20th an ounce.
Numerous countries and mints produces fractional gold coins, even Australia. The most dominant mints are the US mint and the Canadian mint. If you buy bullion coins produced by these two mints, you are guaranteed that you can sell these coins anywhere in the world.
What are the benefits of buying fractional gold bullion coins
Fractional gold coins are small and portable. They are flexible and very liquid. This means that when the time comes to sell, you won’t have to struggle to find a buyer. With smaller coins, you can sell the amount that is reflective of the cash you need. You don’t want to have to sell a 1oz gold bullion coin that costs $1,850 when you only need $500. You could get that kind of money for a coin measuring a quarter ounce.
If gold were to ever replace normal currency, fractional gold coins are more practical. It will work out better to have ten separate 1/10 oz. That make 1.0z instead of just a 1oz. Gold coin.
Fractional gold coins make great gifts. A 1/10 ounce gold is a practical gift. One fractional coin weighing a tenth of an ounce might be worth $175 whilst a 1oz. Gold coin may be worth hundreds more.
Why you shouldn’t consider fractional gold coins
Buying 10 tenth of an ounce gold bullion coins might seem to be more expensive than a 1oz gold bullion coin. This is because fractional coins have a higher premium than other coins. They
cost more to produce and this cost that mints incur is passed on to the buyer.
For instance, if ten one-tenth oz. American Gold Eagle coins are quoted at $1,900, the coins would approximately cost $1,950 when you factor the cost of manufacturing and other charges. A 1.oz American Gold Eagle coin costs less because of low fabrication fees.
Should you buy fractional gold? You should if you are planning to cash in soon. If you are looking for a long term investment, you should buy bullion with a more attractive buy or sell spread like 1oz. Bullion coins.