Anyone against buying fractional?

[mlomeli]

I know some of you are able, but I'm not in a situation to buy full 1oz gold. As Silver (poor man's gold) is "easier" to purchase at full oz's, I'm wondering if fractional gold buying has it's pro's as well. My LCS has started carrying (or at least I'm just now noticing-displaying) those gram bars that carry a smaller premium than the AGE. I have 1/10 gold...that's it. Silver....a modest 38oz. So, I know we are on the gold forum, so I do expect a little bias, but would it be wise to get a little more gold...even if it's at smaller fractions (.25/5gram/10gram)?

I hope this makes sense. Still working on the first cup of joe..:o

[coindog]

I would try for at least 5 or10gr bars or some of the smaller coins from europe and mexico. otherwise the premiums hurt.

[SterlingSilver]

Pamp 10 gram

[Legio Patria Nostra]

I have to agree with coindog .... if not buying 1/10 ... keep the bars at minimum 5 grams !
Try to keep away from premiums over 3% ...reason being ... when selling you're going to take a loss ( most dealers I know are paying 98% of spot for bars ... even less for mexican coins ) ....
If possible always try to sell privately .... and by doing so ...you will have a bigger audience with fractional gold
in short ...fractionals are fine !!

[HighInBC]

Sovereigns and gold pesos are a great choice for low premium fractional gold. The 1/10 1/4 bullion coins have such a high premium I only buy them when they are on sale.

[pacerbic]

Nothing wrong with fractionals, the 1/10 are kind of silly small but hey, gold is gold. Ounce coins have a satisfying heft and art I can see, but at the end of the day ten tenth-ouncers are worth as much as one 1oz'er ... minus the trouble of cutting up the big coin and weighing the pieces.

Personally I guess I find the 1/10 coins to be a little bit "why bother," they are so ridiculously tiny! I stack silver for the "small stuff" and only buy gold when a windfall puts my "dry powder" above the one-ounce line; I'm one of the few who would take a single ounce coin over ten 1/10s for the same price. But that is personal preference and I have nothing bad to say about fractionals, except that silver will probably be more useful for small transactions than tiny-ass gold coins if you are a SHTF type of stacker.

[real money 28282828]

I know some of you are able, but I'm not in a situation to buy full 1oz gold. As Silver (poor man's gold) is "easier" to purchase at full oz's, I'm wondering if fractional gold buying has it's pro's as well. My LCS has started carrying (or at least I'm just now noticing-displaying) those gram bars that carry a smaller premium than the AGE. I have 1/10 gold...that's it. Silver....a modest 38oz. So, I know we are on the gold forum, so I do expect a little bias, but would it be wise to get a little more gold...even if it's at smaller fractions (.25/5gram/10gram)?

I hope this makes sense. Still working on the first cup of joe..:o

i buy 1 gram 1/10 1/4 of gold... the only down side is the mark up is alittle higher on smaller coins. the pro is that if gold hits 6,000 or 55,000 or more it will be easer to sell if its broken up in small amounts all in all 1 gram or gold is better than having 60 dollars in your bank

[Spartikis]

1/10 oz is better than no oz but typically the premiums % wise are higher on small coins. But if you can find a 1/10 oz at the same % premium as a 1oz by all means go for it, it will be easier to resell and its a lot more fun to own 10 of something than one haha. I personally am saving up for my first oz but have been tempted to buy a 1/2 as i have the funds for that.

[HighInBC]

Nothing wrong with fractionals, the 1/10 are kind of silly small but hey, gold is gold. Ounce coins have a satisfying heft and art I can see, but at the end of the day ten tenth-ouncers are worth as much as one 1oz'er ... minus the trouble of cutting up the big coin and weighing the pieces.

Personally I guess I find the 1/10 coins to be a little bit "why bother," they are so ridiculously tiny! I stack silver for the "small stuff" and only buy gold when a windfall puts my "dry powder" above the one-ounce line; I'm one of the few who would take a single ounce coin over ten 1/10s for the same price. But that is personal preference and I have nothing bad to say about fractionals, except that silver will probably be more useful for small transactions than tiny-ass gold coins if you are a SHTF type of stacker.

Well if you ever have 10 pesky little 1/10ths you want to trade for a hefty 1oz then send me a PM because those 1/10ths are preferable to me.

[Legio Patria Nostra]

Well if you ever have 10 pesky little 1/10ths you want to trade for a hefty 1oz then send me a PM because those 1/10ths are preferable to me.

And he can send me a pm for the 1/4 ths ...even the 1/2 ths

[Arcturus]

I have more fractionals because I am in the same boat as you. The premiums are higher on fractionals but they usually retain those premiums if sold privately. I prefer to only buy fractionals issued by the US mint, depends on what country you live in though.

However, with the current GSR in the mid fifties. It may be a better time right now to accumulate silver and trade (or sell privately) for gold later at a lower GSR. This is great way to increase your stack with very little out of pocket costs.

DYODD because the GSR may go higher.

[jbjunior]

Buying the fractionals makes sense as they are easy to sell no matter what spot is. I agree that you have to wait for a decent deal on the premiums though.

FYI - EN online is having an internet special. You can get 2 1/10 AGEs and 2 1oz ASEs for spot (actually a bit below just at the moment). You'll have to pay shipping but averaged out it's better than you could do most other places.

[jaybird]

I don't think it is a good idea to think of silver as just like having fractional gold. Silver and gold are different metals with different fundamentals. I personally have both but for different reasons. Silver is still mostly an industrial metal, whereas gold is money. I would get some gold but I wouldn't get those tiny bars. Just save up enough until you can buy some more fractional gov't bullion coins, but watch the premiums. Also, whatever you buy, ask your coin shop how much they will buy them back for.

[Uncle]

I know some of you are able, but I'm not in a situation to buy full 1oz gold. As Silver (poor man's gold) is "easier" to purchase at full oz's, I'm wondering if fractional gold buying has it's pro's as well. My LCS has started carrying (or at least I'm just now noticing-displaying) those gram bars that carry a smaller premium than the AGE. I have 1/10 gold...that's it. Silver....a modest 38oz. So, I know we are on the gold forum, so I do expect a little bias, but would it be wise to get a little more gold...even if it's at smaller fractions (.25/5gram/10gram)?

I hope this makes sense. Still working on the first cup of joe..:o

Hi, with 2 peso (.0482 AU ) Mexican Gold under $100 I think Gold Peso's are a viable option. I always liked coins better than bars. Decide what you want get a plastic tube and start to accumulate.If your more comfortable with gram bars that's OK to. If Gold goes up it might be easier to sell a fractional that an Oz. Nothing wrong with Silver if your on a budget. 38 oz of Silver is nothing to sneeze at. Most people have none.Regards, your Uncle.

[mlomeli]

Ok, thanks guys. Very helpful.:)

[mlomeli]

One last question (goes along with topic)...

With the GSR as it stands today, would it be wise to continue with Silver and perhaps later trade/sell for Gold when price of Silver dictates (this, is a matter of opinion of course on the price of either).

[MoLocke]

Love fractionals, if gold gets to where i think it will, they will be easier (cheaper) to unload... ill take fractionals all day.

[Arcturus]

One last question (goes along with topic)...

With the GSR as it stands today, would it be wise to continue with Silver and perhaps later trade/sell for Gold when price of Silver dictates (this, is a matter of opinion of course on the price of either).

That is the million dollar question. the future is hard to predict. I bought most all my silver at 65:1, so I'm ahead of the game even at 53:1. You feel lucky? :D

Historical GSR is around 16:1. That is history and does history repeat itself?
There are no easy answers or sure bets.

[HighInBC]

That is the million dollar question. the future is hard to predict. I bought most all my silver at 65:1, so I'm ahead of the game even at 53:1. You feel lucky? :D

Historical GSR is around 16:1. That is history and does history repeat itself?
There are no easy answers or sure bets.

The ratio has only ever been 16:1 while both metals were money. If you look at the history of silver and gold outside of money you see the ratio is much higher.

[SteelandSilver]

I don't think it is a good idea to think of silver as just like having fractional gold. Silver and gold are different metals with different fundamentals. I personally have both but for different reasons. Silver is still mostly an industrial metal, whereas gold is money. I would get some gold but I wouldn't get those tiny bars. Just save up enough until you can buy some more fractional gov't bullion coins, but watch the premiums. Also, whatever you buy, ask your coin shop how much they will buy them back for.
^ what he said.

[SteelandSilver]

^ I said "what he said", but I also believe that silver is more then just an industrail metal - I think it's both an industrial metal and money.

[HardlyPeeved]

Its almost like "poor man's Gold".

1g, 5g, 10g bars
1/4oz, 1/2oz coins

What's not to like ? Just keep the premiums down...if you can.

But its all good.

[torpedoman]

the real problem is when you go to sell it and the buyer has no idea of what a "gram" is or the value of your item.

[Metal Is Real]

1/10ths are the only AGE's my wife will let me buy!

Bought my first 1/10th for less than $160 and that was just this last summer. I'm on my fourth one now and they're sure better than a savings account of FRN's. I wish I could get larger ones so at least I can see the date on the darn things without a magnifying glass.:(

[HardlyPeeved]

1oz in gold is really 1ozt.

Some non-metals person would think you were trying to "pull one" on them when you say that really its 1 troy ounce...versus 1 ounce.

There are 12 ozt. to 1 troy pound.

So PM ounces are based on old-world Troy ounces and pounds...not modern Imperial ounces and pounds.


The ounce is a sixteenth part of a pound avoirdupois, but it used to be a twelfth part of a pound troy. The apothecaries ounce and troy ounce are now different weights.

http://gwydir.demon.co.uk/jo/units/weight.htm

[captainpooby]

Buying the fractionals makes sense as they are easy to sell no matter what spot is. I agree that you have to wait for a decent deal on the premiums though.

FYI - EN online is having an internet special. You can get 2 1/10 AGEs and 2 1oz ASEs for spot (actually a bit below just at the moment). You'll have to pay shipping but averaged out it's better than you could do most other places.

Who is EN Online. I searched but couldn't find them.:o

[MrWild]

Who is EN Online. I searched but couldn't find them.:o

+1.................

[Fusion]

To answer your question, no I am not at all against buying fractionals. In fact I buy them quite often. 1/10, 1/4, Sovereigns, and 1/2. My only full ounces have been from either selling silver and buying gold or trading silver direct for gold (metal for metal). BD Direct Nucleo used to be good for selling and buying but the costs of doing business with them have gone up. I ALWAYS take possession of my metals.

[jbjunior]

Who is EN Online. I searched but couldn't find them.:o

Eastern Numismatics. The website is USCOINS.COM. (i didnt know if i was allowed to post links to sales sites in a post so i didnt)

Once you hit the main page click on the buy SAE link. Then you'll see a search button at the top of the screen. Search for "per household" and you'll see all the special offers. Currently there are 2 1/10AGEs, 2 1oz ASE, and a morgan. It's limited to one per household for each. A bit of process to find the offers but its better to do it this way than just blindly look through the site.

I ordered 1 of the ASEs and 1 of the AGEs about a month back (befor the other three offers showed up) and delivery took about 3 weeks (about 10 business days from when they charged my card).

It's a good spot to keep bookmarked since the prices are usually at or below spot and they add new offers pretty regularly.

[captainpooby]

Am I seeing correct? That is the shipped price?:eek:

That's a helluva deal.:D

[HighInBC]

the real problem is when you go to sell it and the buyer has no idea of what a "gram" is or the value of your item.

Most of the world knows what a gram is, it is far more likely that someone will not know what a troy oz is.

[courant]

Most of the world knows what a gram is, it is far more likely that someone will not know what a troy oz is.

Everyone in the world knows what a gram is, however, most people might not know how much a ounce (troy or not) is. Most people simply use grams/kilo outside the US.

[TheLegendaryJP]

Everyone in the world knows what a gram is, however, most people might not know how much a ounce (troy or not) is. Most people simply use grams/kilo outside the US.

If someone is looking to buy they likely have some knowledge, even the most basic and will know gram or oz.

I cannot imagin it being a problem worth even discussing,... hey Tim was going to buy a gram of gold but gee golly whats a gram heehhee haahaa Im goofy lalalalala.

Ya, highly unlikely.

[MrWild]

I'd do a S/G swap and toss 27oz Ag for a half oz of Au. You seem to have small amounts to spend for PM more often than not, and life always seems to have a use for the money in our pockets. By buying silver as often as you can, you build up a Bank you can trade in with a gold swap. Buying at least 1/2oz bars or coins, you pay less of a premium.

I find I agree with the people that say silver accumulates, gold holds. I just look at it differently. I don't see silver's roller coaster as accumulating wealth as much as I see the purchase of silver lets you eventually trade a portion of it for gold.

[mmthomas2001]

I have seen the small bars and coins at my LCS. At my age, I prefer 1 ounce minimum coins/bars. Anything less is just too small for me and hard to see. So, for small amounts, I buy silver, typically 1 oz ASEs.

[RobbMatthew]

I don't see silver's roller coaster as accumulating wealth as much as I see the purchase of silver lets you eventually trade a portion of it for gold.

My thoughts exactly.

[mlomeli]

Good stuff. Food for thought. Thanks.

[dan8802]

I would suggest buying British Sovereigns for 3% over spot. (.2354 AGW), so smaller than a quarter ounce, and much better premium.

There are other European coins as well like French Francs

[juniorbill]

I would suggest buying British Sovereigns for 3% over spot. (.2354 AGW), so smaller than a quarter ounce, and much better premium.

There are other European coins as well like French Francs

I'm pretty new at this. Would a cleaned or damaged Sovereign at 2.5% over spot be a good buy from a purely bullion perspective?

[dan8802]

Cleaned is fine... Certain date sovereigns have a numismatic value but you don't have to worry about that.

It depends what the damage is... obviously if there is gold loss you would want to stay away. I usually buy face to face at my LCS, and sometimes the sovereigns are a little worn down, so I stay away from those.

Well need more people, who have more experience to chime in on this.