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Thread: Gold fractionals...pros & cons

  1. #1
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    Mar 2009
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    Default Gold fractionals...pros & cons

    Fractionals, what are the pros and cons? There is a hodge-podge of opinions and all of them are fair comments. Fractionals are both available in coins and bars, so there is even more to consider, bars verses coins.

    I have a feeling there are a few guys/gals that watch these threads but stay some what silent.

    I personally hold a lot of fractional coins from over my years from both coin collecting and bullion stacking. Only a few 5 and 10 gram gold bars that were gifts. Maybe it is time to add to these? I'm thinking on it for now.

    The advantage of the fractional is overall cost which includes the premium. Long term planning is usually what stackers plan for, an appreciation is value over an extended time. Estate planning can come into play, so lots of us have a forever stacking plan in motion right now. Some trade occasionally and I've dabbled in this over the years, especially gold and silver Pandas when I was a serious collector. I never took a single loss on gold and silver, fractional and 1 oz. size. I always more than recovered the premiums. I must admit the premiums were a lot less in those days compared to now.

    Say gold goes to $5,000.00 USDollars per oz. How many are going to pay that much? I'd say a lot less as the prices get to those levels, but the fractionals may out shine the full 1oz. gold coins or bars. I see where a 5 gram bar or a 1/10 or 1/4 oz. coin would be a lot faster to sell. So there is one condition where gold fractionals out shine the 1oz. size.

    From a foreigners point of view, in Canadian dollars we are at approx. $2,700.00 per oz. but add in the premium it is over $3,000.00. Gulp! I sure don't see many 1oz. coins selling up here in the completed items on ebay. People are migrating into silver for mainly 2 reasons.
    Silver is cheaper, but there is potential for a better/bigger upside in gains.

    Please share your thoughts, I hope some fractional collectors/stackers share their thoughts with us as well. Cheers and happy stacking or collecting.
    ...be your own Health Care System... grow your own and eat well

  2. #2

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    You ask what happens if gold goes to $5,000/oz. The more pertinent question is what happens if the dollar falls to the point where it takes $5,000 to buy an ounce of gold?

    That said, that is when silver will replace gold in fractional transactions.
    Now there's no more oak oppression
    They passed a noble law
    Now the trees are all kept equal
    By hatchet, axe and saw.

    I will not comply.

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  3. #3
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    So do you own any gold fractionals at all, or only silver?
    ...be your own Health Care System... grow your own and eat well

  4. #4

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    Quote Originally Posted by digbird View Post
    So do you own any gold fractionals at all, or only silver?
    I do. I guess what I am saying is if you are worried about gold and selling fractional to accommodate price affordability in a currency collapse situation, you can buy silver.... Outside of that, buy what you like and can afford.
    Now there's no more oak oppression
    They passed a noble law
    Now the trees are all kept equal
    By hatchet, axe and saw.

    I will not comply.

    The Tea Party... quietly plotting to take over the world,
    and leave you the hell alone!

  5. #5

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    I have some near quarter ounce gold coins, mostly sovereigns. I like the shields best. I have some near quarter ounce pre 33 gold coins and some near half ounce pre 33 as well, i have collected about 50 tenth ounce gold eagles over the years when i could get them near spot. since the premiums have headed up the last few years i try to concentrate on full ounce eagles or pre 33 near ouncers. most of my stacking has been in 100, kilo, 10 and 1 ounce silver bars along with the occasional soverign 1 ounce silver coins but mostly 1 ounce generic rounds and heavy on the 90% for over 10 years. i am banking on the gsr with silver outshining gold in next couple months to years to seriously increase the metals holdings for the estate. i hope i am correct in my thinking. no gold bars currently. they are like generic foreign gold coins to me and only for gsr trading when that trade makes sense. my main focus over 10 years has been to garner as much as i can for as low of premiums as i can. 90% silver has been the winner all around in that regard. purchasing as close to spot as possible or rounding up to the next $1 face on halfs, quarters, dimes. when it is time to trade from silver to gold i will sell the silver bars and generic rounds first, and then the cull 90% pieces.

  6. #6

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    Fractional coins tend to be more expensive to buy, on a per oz basis. If you sell back to a shop or other dealer, you generally do not get back the extra mark up.

    As was said, smaller coins tend to have a larger audience of buyers because fewer people are priced out of the market.

    To me, it really is that simple.

    If I see well known fractional coins for near spot, they are my preferred buy. ...but few deals of that nature seem to come my way.
    “The Federal Reserve is not currently forecasting a recession.”
    Fed Chairman Ben Bernanke, January 2008
    This is no longer posted in the Fed Minutes of January 2008, but still quoted here - https://www.nbcnews.com/id/wbna22592939. The FOMC minutes still quote MR. Reifschneider. as stating the same thing.

  7. #7

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    i agree with almost everyone here. When Au reach 3000 or higher, silver will to take its role as money again.
    Silver was the most used money before paper currency for a reason, gold is mostly for concentrated wealth preservation for the wealthy.

    Generally I avoid gold that is less weight than a sovereign size circulated gold. Exception made for .1867 franc as it's ~0.21 oz as a coin. Nothing over 5% premium unless it has some numi value. I do not chase 1g, 5g, 1/10 oz AU unless offered at sub 5% premium. It's hard to admire the beauty of a coin/bar that is too small. Ex. 1/10 oz GML has much less detail than the 1 oz GML. Less detail = easier to fake and discern. If u really want < 1/4 oz fractional, stack gold jewellery like ring and bracelet. premium is way less, can even get them under spot

    Once the masses wake up to real money, by then POG is too high, the masses will look toward silver as their proxy for gold. No way the a gov't want to confiscate silver, too much around but rare enough to be valuable and has the history as money. Hence, silver is the perfect money, and gold is the perfect asset.
    Last edited by yellowsnow; 11-19-2023 at 08:06 PM.

  8. #8

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    Ready saleability is the main issue in all holdings whatever they may be.

    When people are indebted over their nostrils they are unable to put aside one fifth of their monthly income over their normal expenses ( who in the last year have skyrocketed) to buy a 2000 $ a monthcoin. .

    Even full sovs are nowadays around 533 $ and 20 francs 423$ but still affordable compared to those bigger blobs. At one time i exchanged half sovereigns for full sovereigns, it was a mistake...

    Golditiki2+++
    .

  9. #9

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    To the OP, I guess I should also admit I just bought a half oz first ladies gold coin because the premium was reasonable.... and I like the idea of having gold onhand.
    Now there's no more oak oppression
    They passed a noble law
    Now the trees are all kept equal
    By hatchet, axe and saw.

    I will not comply.

    The Tea Party... quietly plotting to take over the world,
    and leave you the hell alone!

  10. #10
    Join Date
    Mar 2009
    Posts
    11,755

    Default

    I'm surprised how many fractionals I've gathered over the years. Lots of 2 dos peso and the 2 1/2 dos peso. Can't remember what I paid for the 2 peso's but remember buying a few 2 1/2 peso size for $40.00 then they bumped up to $45.00 and bought a few more. Good ol days. Then add in a lot of 1/10th Pandas and Australian 2012 1/10th dragons, and a lot of British sovereigns. And a few bars as I've mentioned previously.
    ...be your own Health Care System... grow your own and eat well

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