Is it worth buying fractional Gold?

Discussion in 'Gold' started by Howmuchfordefish, Sep 7, 2019.

  1. Howmuchfordefish

    Howmuchfordefish New Member

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    Ok very small gold player with a few oz of Perth Mint 1gram certicards an around 4 oz of Perth Mint 1/10th kanga/ nuggets.
    Should I be looking at buying bigger than my 1 gram 1/10th collection for my stack?
     
  2. mongrelmaple

    mongrelmaple Well-Known Member Silver Stacker

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    Yes. Definite yes.
    It’s far better to save and purchase in higher sizes, simply so you can save on paying so much in premium. Personally, 1/4oz gold is the absolute smallest I will go in, and I’m only collecting the queens beast coins in that size. All my other gold is in 1oz or higher increments.
     
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  3. madaw1

    madaw1 Well-Known Member

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    In simple term the answer is-YES. If you look for example at lunar coin series 1 and 2 the first coins mouse ,ox 1/10th and 1/4th oz went to the moon .
     
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  4. ozcopper

    ozcopper Administrator Staff Member

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    I am the opposite, I think small sizes will be easier to sell in the future and you will be able to recover you premium.
     
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  5. JulieW

    JulieW Well-Known Member Silver Stacker

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    I'd stick with coins. I'd probably aim for ounce, half and quarters as well. 0.9999 is the go.
     
  6. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Depends on your personal opinion of "affordability" and your purpose for stacking gold.
    When i started i could afford to buy ounces and wasn't thinking about reselling. When I did go to resell, I couldn't find buyers as fast as I wanted.
    Now I can no longer afford ounces I buy fractionals, but recover the premiums upon resale.

    So if youre after long term store of wealth and don't mind reselling to a dealer at or below spot, go 1oz+
    If you're flipping or not sure how long you'll be holding the amount of gold for, go smaller sizes.

    I do not buy larger than 1/10 anymore, and recently bought my first gram sized pieces. Will be getting into 1/2g sizes soon. They sell within an hour of listing and spot price moves so quick that I generally recover all my premium.

    If gold hits 10k an ounce, you'll be hard pressed to find an anonymous sale for your 1oz button or coin. But your 1g combibar fraction will pick up $350 in a F2F.

    Concur with JulieW that anything below 24k is a waste of time. Too many replicas of 22k coins on the market these days anyway. Anything below 24k I consider jewellery, not bullion for investment.
     
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  7. jultorsk

    jultorsk Well-Known Member Silver Stacker

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    I guess size doesn't matter (ahem), as long as you pay as little premium as possible. E.g., a sovereign is technically a "fractional" (AGW 0.2354 oz) and can sometimes be purchased for spot. Same with LMU coins (Latin Monetary Union) - e.g., beautiful French 20 franc Roosters which are AGW 0.1867 oz and you can buy them in Europe for 1-3% premium easily.
     
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  8. ozcopper

    ozcopper Administrator Staff Member

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    I also like old European gold coins. And Mexican 2 pesos and 2.5 pesos.
     
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  9. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    Like an overall investment portfolio which is diversified ie property, shares, cash and PM's & other etc, I'm for varying weights / size to achieve both min premium on some (larger sizes) and sale-ability on others (fractional) noting you pay a higher premium on the latter.

    At the end of the day, it's about what your strategy is, ie overall portfolio diversification?, short term buy and flip?, long term hold for capital appreciation?, SHTF ? or other. As someone who never takes a "all in view" on any one specific investment, I've bought / invested to cover (hopefully) all scenarios and hopefully will make a few bob out of it as we go along.
     
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  10. madaw1

    madaw1 Well-Known Member

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  11. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Definitely depends on the item I guess. I have a distaste for sovereigns even though they are popular here.
     
  12. ozcopper

    ozcopper Administrator Staff Member

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    I really like sovs! It was better when I was buying them for $90 each back in the 80s though.
     
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  13. Howmuchfordefish

    Howmuchfordefish New Member

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    My gold is for long term, I bought what I have on SS and Perth Bullion (RIP) between 2014 And 2017 so it looks like I gained back my premiums paid at the time.
    Maybe best to restart fractional,s again after a few years break.
     
  14. Ian Gillman

    Ian Gillman Active Member

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    It depends if you think that the gold price is going to climb above the premium that you are paying. I get 1/10 ounce for that reason, it is small enough to be able to sell it easily later and I think the price of gold is going to climb above the premium I paid for it.
     
  15. alor

    alor Well-Known Member Silver Stacker

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    it is worth it up to a certain extend
     
  16. GoldenEye

    GoldenEye Well-Known Member Silver Stacker

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    I paid $123 for some in 1998, and there was no GST, but it looks to be well above spot.
     
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  17. Mud Gecko

    Mud Gecko Active Member Silver Stacker

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    I love fractional gold. So liquid, endless trade possibilities and small enough $ wise to keep prying eyes away from private transactions. Especially if gold goes 10k+ in the future...
     
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  18. SilverDJ

    SilverDJ Well-Known Member

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    Absolutely, yes, you get killed on premiums on anything less than say 10g.
    Ok to have a some 1g to trade if you think that's important, but otherwise the bulk of your PM wealth should but in much lager bars or coins.
     

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