Gold ownership has become a hot topic recently as investors are looking for some peace of mind in a recessionary economy. The idea of owning something that has been a store of wealth for thousands of years is comforting to many people, and investors have recently flocked to the yellow metal for peace of mind. Gold is over $100 per ounce, and to successful diversify, an investor may need to purchase more than a few grams. And while some investors can afford to spend serious amounts of money diversifying their portfolios in this way, the average citizen often finds it hard to sink a large portion of their yearly paycheck into the precious metal. One great way to own physical gold while not breaking the bank is through fractional gold coins and bars. These pieces of gold are available from dozens of mints worldwide and can be found in fractional amounts of 1/2, 1/4, 1/10, and 1/20 of an ounce. The US Mint produces what are known as “American Gold Eagles” in many of these sizes, which are available through coin dealers and many websites online.
While many investors prefer to diversify their portfolios with gold ETF’s, others feel that it is important to possess physical gold. The arguments for physical possession are many, and fractional gold satisfies them all. In an economic meltdown, ETF’s are nothing more than a paper promise; while physical gold, even in fractional form is a true store of wealth. Average investors can spend just a few dollars a month a begin building their gold investment portfolio piece by piece, fraction by fraction. Fractionals allow the average investor a gateway to physical gold ownership and portfolio diversification.
One of the downsides of fractional gold is the fact that he premiums charged by dealers are considerably higher per gram than they are if the gold is purchased in larger amounts. An ounce of gold usually has a 4-6% premium attached to it, so dealers can make money from sales of bullion. Fractionals usually have higher dealer premiums, which reflect the idea that there is a discount to be found in bulk purchases. Some fractionals can come with as much as a 50% premium attached, depending on the particulars of the coin or ingot. A 1/10 ounce coin may cost $150, where $110 is the bullion value and the additional $40 premium is the profit a dealer makes after a sale. A one ounce coin, selling for $1150 is valued at $1100 in bullion and the $50 premium exists for the dealer’s profit. Premiums on fractional are higher relative to the amount of bullion contained in the coin, but fractionals are much more practical investments for many people.
Fractionals are a great way to invest in gold without committing tens of thousands of dollars or overextending people’s budgets. There are some minor drawbacks to fractionals, but the advantages to fractionals far outweigh them. Fractionals give the average citizen the opportunity to diversify their investment portfolio and begin to build and preserve real wealth. In many countries, such as Austria, Germany, Canada, and Mexico, fractionals are much more popular with investors and the general public. Perhaps it will take an economic recession for the American public to realize the benefits of gold ownership, specifically fractional coins and bars.
Gold ownership has become a hot topic recently as investors are looking for some peace of mind in a recessionary economy. The idea of owning something that has been a store of wealth for thousands of years is comforting to many people, and investors have recently flocked to the yellow metal for peace of mind. Gold is over $100 per ounce, and to successful diversify, an investor may need to purchase more than a few grams. And while some investors can afford to spend serious amounts of money diversifying their portfolios in this way, the average citizen often finds it hard to sink a large portion of their yearly paycheck into the precious metal. One great way to own physical gold while not breaking the bank is through fractional gold coins and bars. These pieces of gold are available from dozens of mints worldwide and can be found in fractional amounts of 1/2, 1/4, 1/10, and 1/20 of an ounce. The US Mint produces what are known as “American Gold Eagles” in many of these sizes, which are available through coin dealers and many websites online.
While many investors prefer to diversify their portfolios with gold ETF’s, others feel that it is important to possess physical gold. The arguments for physical possession are many, and fractional gold satisfies them all. In an economic meltdown, ETF’s are nothing more than a paper promise; while physical gold, even in fractional form is a true store of wealth. Average investors can spend just a few dollars a month a begin building their gold investment portfolio piece by piece, fraction by fraction. Fractionals allow the average investor a gateway to physical gold ownership and portfolio diversification.
One of the downsides of fractional gold is the fact that he premiums charged by dealers are considerably higher per gram than they are if the gold is purchased in larger amounts. An ounce of gold usually has a 4-6% premium attached to it, so dealers can make money from sales of bullion. Fractionals usually have higher dealer premiums, which reflect the idea that there is a discount to be found in bulk purchases. Some fractionals can come with as much as a 50% premium attached, depending on the particulars of the coin or ingot. A 1/10 ounce coin may cost $150, where $110 is the bullion value and the additional $40 premium is the profit a dealer makes after a sale. A one ounce coin, selling for $1150 is valued at $1100 in bullion and the $50 premium exists for the dealer’s profit. Premiums on fractional are higher relative to the amount of bullion contained in the coin, but fractionals are much more practical investments for many people.
Fractionals are a great way to invest in gold without committing tens of thousands of dollars or overextending people’s budgets. There are some minor drawbacks to fractionals, but the advantages to fractionals far outweigh them. Fractionals give the average citizen the opportunity to diversify their investment portfolio and begin to build and preserve real wealth. In many countries, such as Austria, Germany, Canada, and Mexico, fractionals are much more popular with investors and the general public. Perhaps it will take an economic recession for the American public to realize the benefits of gold ownership, specifically fractional coins and bars.
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