What are some of the advantages of buying fractional gold coins?

We have spoken with many collectors who regularly purchase silver, platinum, or other precious metals, and were interested in buying gold but were hesitant because of the steep entry costs. It's true, your dollar can often stretch further purchasing more ounces per dollar with other metals. But that's where we find fractional gold coins to be an excellent starting point.

Taking a look at the American Gold Eagle as an example, it is offered as 1 ounce coins containing 91.67% pure gold (22-karat). However, they are also available in 1/2 ounce, 1/4 ounce, and 1/10 ounce variations. Because they are smaller and contain less fine gold by weight, they can provide a more affordable entry point.

Fractional gold coins can also offer greater flexibility when it comes to selling your gold holdings. Instead of having to sell a full one-ounce coin, you can sell smaller portions of your investment. This can be helpful if you need to access funds or only want to liquidate a portion of your gold without selling your entire holding. Alternatively, you could consolidate your fractional coins, trading them in for higher ounce coins.

A few other great features of fractional gold coins are that they often have collector appeal due to their unique designs, limited mintages, or commemorative themes. They can be an excellent addition to a coin collection, offering not just the intrinsic value of gold but also the pleasure of owning a collectible item. Fractional gold coins can also make great thoughtful and memorable gifts.

Before you buy, it's important to consider the premiums associated with fractional gold coins, as the cost per ounce of gold can be higher compared to larger coins or bars. However, overall, fractional gold coins can offer affordability, flexibility, and collector appeal, making them a fantastic choice for investors looking to own physical gold in smaller denominations.