Live Metal Prices / oz
Gold: 1853.89 USD
Silver: 22.11 USD
Platinum: 942.50 USD
Palladium: 2051.50 USD
Rhodium: 15499.98 USD

1 Ounce vs Fractional Gold Coins - Which is a better buy?

Bullion investors almost always consider adding gold coins to their portfolios. Most gold coins are sold in a 1 ounce size, with fractional sizes available as well. The most common sized gold coin is the 1 ounce gold coin, but fractional sized coins as small as 1/25 ounce are also available. Often there is a misperception about whether 1-ounce gold bars or coins are better than fractional coins. However, fractional gold coins in bulk quantities can be a small but sizable investment in the short run. 

What Are Fractional Gold Coins?

Fractional coins are less than the standard minimum of 1 ounce of gold or silver. Any size which is less than an ounce is referred to as a fractional. The most common fractional gold coins preferred by investors are the Canadian Maple Leaf gold coin and the South African Krugerrand gold coin.

All fractional gold coins that are considered investment grade have a minimum fineness of 999. Some have a purity as high as 9999. For investors who prefer to build up a portfolio in smaller denominations or who cannot afford to purchase 1 ounce coins, fractional gold coins can be an excellent option. 

Different Types of Fractional Gold

Fractional gold coins are available in a range of sizes including 1/2 ounce, 1/4 ounce, 1/10 ounce, and 1/25 ounce variants. As the spot gold prices are updated continuously, these changes constantly affect the prices of fractional gold coins.

Depending on the market value of gold globally, a 1/10 Oz fractional gold costs between USD 150 - USD 200 each. For investors who are looking to buy gold bars or even buy silver bars, there are also fractional options. 

Investing in Fractional Gold Coins Over 1 Ounce Coins

Investors will find some pretty important considerations when it comes to choosing between fractional gold coins over 1-ounce coins. The premium of fractional gold coins is higher than the premium of 1 ounce gold coins, which can make the overall price of your investment higher if purchasing large quantities of coins.

However, fractional gold coins can be affordable and a viable financial investment, even if they are bought in bulk. 

There is also the longer term consideration of selling the coins at a later date. Are they easy to trade? Investors looking to trade gold for cash may find that they prefer to sell fractional coins in more incremental amounts over larger, ounce denominated coins. Both fractional and one ounce gold coins are easy to liquidate, and provide flexible trading opportunities in what is a fairly liquid market.

The main advantage of fractional gold coins is during an economic crisis. If there is a financial or economic crisis, fractional gold coins can be more easily traded for goods and services. 

Conclusion

If you are in the market to invest in gold or buy silver coins even, then consider adding some fractional gold coins to your portfolio. Investing in fractional gold coins can help buyers create a robust investment portfolio. BuyGoldCoins.eu has an excellent collection of fractional bullion for investors looking to expand their assets.