Sorry noob question here.. Just wondering what's the rationale for buying 1/20 oz gold coin? From collector point of view, 1/4oz is small enough to see the details (mind you I got thick prescription).. let alone 1/20 From investor point of view, wouldn't it better to get minted bar will smaller premium (although there's no collector value there) Thanks! (gee I hope i don't get grilled)
GP or someone else pointed out that silver is a good substitute for gold fractionals. My gold is for large purchases and silver is for SHTF daily use.
Answer to noob question - if all you can afford is 1/20 oz then go for it but compare the spot gold price first to see what premium is added . When selling don't expect to get a higher price than spot though. Just have to do the maths but anything less than a 1/10oz is likely to cost you real fiat. If new to PMs then look for half sovereigns. Krugerrands seem to be the lowest premium ( 2% above spot ) with buy back at spot if you know where to look. If starting out now then you are braver than me as I am selling.
The smallest coins I've bought is 1/10th oz, haven't received them yet so don't know how small they will be. I did buy some 1/4 and thought those were tiny. The reason I bought the 1/4 was because I think it would be easier to sell to the average Joe because most people I know can't afford a $2000 coin but they might be able to buy a smaller coin. Photonaware, are you also a seller of silver at these prices or just gold? I might sell one oz of gold when/if it hits $2k/oz US.
The 1/10 oz. Are pretty tine think of a dime, made of gold but a tiny bit thicker I bought a few a while ago though I'm getting more fond of the 5 gram bars want to buy another soon. Rhough at rhese prices I'm probaly better of buying a metal detector and combing the more busy tourist beaches in the area I guy I know lost an 18 kt band two weeks ago above rhe low tide mark.
1/4 oz was my fave size for my kind of budget, now I buy 1/10's when I can afford them. They are seriously small. I have avoided buying smaller sizes because of the premium and I can't even imagine how small 1/20 and 1/25 ozers are. I would lose them in a minute! There's a psychological resistance in me to spending that much on something so small... Probably a silly attitude, but I'll stick to 1/10's or larger for as long as I can. Half sov's are very cool too.
I stick to 1/10oz and above - any coin that needs an eye loupe to read the weight on is too small in my opinion. 1/10oz are great for liquidity. Anything smaller - stack some silver oz instead, lower premiums.
I have to respectfully disagree with part of your comment regarding selling. Smaller fractional gold almost always carries a higher premium percent-wise when both buying (from dealers and individuals) and selling (to individuals), especially semi-numi and numi coins. Lately on the bay I've seen 1/20 coins like Maples going for as much as $140 USD. Even when gold prices were lower I've never seen a 1/20 government issue coin sell at or below spot unless it was back to a dealer (which I don't recommend). Just my opinion.
MatrixOpals Your opals are beautiful (won't mention the thread I saw a picture on - might upset you again). If I want the worse case scenario and most pessimistic outlook, all I have to do is wonder what you'd say, then go read your posts. I sincerely hope the above scenario doesn't become the norm - I've got four small boys, who I want to see grow up and no .45 colt, or .357 magnum or ammo! No claymores, no defensive posiitons, no teargas and no way to get rid of bodies!!!! Under Prepared (my scoutmaster would be ashamed of me)
NA don't buy 1/20 Just kick them all this way if you don't like them But I have to admit 1/10 & 1/4 are my fav I've never had an issue with moving 1/20 coins
I have been stacking as small as 1/25th coins and I love 1g certicards. It all depends on what your outlook is. Nothing wrong with 1oz coins of course (and agree re the lower premium) but if you are only looking to profit on gold price appreciation you might as well just trade PMGOLD on ASX. The more dire your outlook the smaller the fractionals you will be wanting to stack.
I picked up a set of 1/20ths as one of my first purchases. Getting more cuts down on the premium, and gives enough for their purpose to be served. Divisibility rocks. But you only need so many. I went with the 1/20oz, 1/4oz, 1oz series and figure for now, if need be, 4x1/20oz make a pretty close trade for a single 1/4oz. If I was starting again, I may go the 1/10oz, 1/2oz, 2oz, 10oz route only because 5oz coin is missing. Interesting note - 1/20th ounce is a pennyweight. So.. these are literally gold pennies.
Not selling silver at the moment because we Brits have to recover the 20% tax over spot before we can make any gains. Some way to go yet and not making any money on fee-Bay either so just waiting for Ag to rise further. Managed to unload some gold at the peak today but it may be a while before you see $2k and that's when I too might sell a few more gold coins again.
