Fractional coins come in assorted sizes, typically ranging from 1/20 ounce to 1/2 ounce. They may also represent various denominations. For example, the American Gold Eagle is available in 1/10, ¼, ½, and one-ounce sizes with legal tender values ranging from five to 50 USD.
The most significant and most obvious benefit of buying fractional gold is cost. While many may not be able to spend over two grand for an ounce of gold, investors may be able to afford $300+ for 1/10 for an ounce of gold. This allows more people to enter the gold market. In conjunction with cost, fractional sizes are also more liquid and easier to sell.
The only salient disadvantage to buying fractional coin sizes is that, in the long term, you will likely pay more in premiums compared to buying a larger option.
Advantages of Investing in Fractional Coins
- Affordability: For many, smaller sizes are more affordable to buy and easier to sell.
- Portfolio Diversification: Fractional coins contribute to diversification. This especially helps those with tighter budgets.
- Collectibility: Collectors often like to acquire a complete set of a release by collecting all denominations.
Common Fractional Sizes
Most often smaller sizes are available for more costly metals like gold, platinum, and palladium, but it is less common for silver. As mentioned, fractional is often considered sizes of less than one ounce.
- 1/10 oz
- 1/4 oz
- 1/2 oz
- 5-gram
- 10-gram
Examples of Fractional Coins
Gold Canadian Maple Leafs
These Canadian gold coins are available in 1/20, 1/10, ¼, ½, and 1-ounce sizes. The smallest version holds a face value of one dollar. The one ounce has a legal tender value of 50 dollars.
Gold Mexican Libertads
The gold Libertad is sold in 1/20, 1/10, ¼, ½, and 1-ounce sizes. The Libertad does not carry a legal tender value.
American Platinum Eagles
This platinum coin is available in 1/10, ¼, ½, and 1-ounce sizes. The smallest denomination is 10 dollars. The largest is 100 dollars. Prices vary as the market changes, but a 1-ounce size may be four times the cost of the smallest size.
Do Fractional Bars Exist?
Often a fractional bar is a bar that weighs less than one ounce. Unlike coins, they do not carry a “face value.” A good example of this are the Valcambi gold bars. Valcambi mints bars as small as one gram. They even sell small bar CombiBars™. This is a pack of smaller size bars sold together. The advantage of this is that you can separate them and easily sell the small bars when desired.
Fractional coins offer a practical and versatile approach to investing. Their smaller denominations provide accessibility to a broader range of investors, allowing for diversification, affordability, and flexibility in portfolio management.
Additionally, their enhanced liquidity and potential collectible value further underscore their appeal in the investment landscape. Fractional coins are a compelling option for those seeking to enter or expand their presence in the precious metals market, offering a gateway to the benefits of precious metal ownership in manageable increments.
