Is Fractional Gold Worth Buying

In this post, I want to talk about fractional gold, the advantages and disadvantages.

Fractional gold is any gold coin or bar less than an ounce. 

I like to keep a small portion of my precious metals stack in fractional gold for the following reasons:

(1) Great in a barter type situation- To me this is one of the best things to have in a barter type situation. A lot of people stack junk silver or one oz silver coins and there’s nothing wrong with that, but in my opinion, the average everyday person is more familiar with gold and its value. Some people just aren’t aware of silver, its pricing and scarcity. Gold is something that will be more sought after and easier to use. Personally, I have both fractional gold and silver for a barter type situation, but I want to emphasize that I think more stackers should add fractional gold. 

(2) Easier to collect these than standard 1 oz coin. I know a lot of stackers don’t really focus on the collecting aspect, but I think it’s fun to do. So, if I’m looking to collect gold coins from a variety of mints and types, it’s going to be much easier with fractional gold.  Or, if I’m looking to get all the years from a certain mint or a particular type of coin then fractional gold can be great to stack. Again, silver is probably better for collecting and variety, but gold has a place here too. 

(3) History, and I’m talking about pre-1933 gold here primarily. There’s Indian heads, commemorative coins, gold from defunct mints like Charlotte. It’s something that was valued highly then and valued well today too. There’s potential to get shipwreck gold and all sorts of historical gold from other countries too. And of course, you are getting into numismatic territory here, but many pre-33 fractional gold coins have reasonable premiums. 

(4) Easier to buy. Saving up for 1oz gold can take quite a bit of time and we can expect to pay anywhere from $1900-$2300 depending on spot price, brand and a number of factors. It can be tough to stay on track if you’re saving for a big purchase like this. It’s much easier to dollar cost average and get the gold. 

There are some disadvantages too I want to point out:

(1) Higher premiums (as a percentage)

(2) Scratch easier 

(3) Can be less visually appealing

Thank you.