The Benefits of Buying Fractional Gold Coins

Since ancient times, gold has been used as a store of wealth. Fast forward to today's fragile and unpredictable economy, and more and more people are looking to buy into this stable and invaluable resource.

However, according to J.P. Morgan, gold prices are going up, and they are expected to reach a new high by the end of 2025.

So, what if you don't have thousands of dollars to invest? 

Enter fractional gold coins. These smaller pieces of gold make investing accessible to everyone, regardless of budget. They're a practical way to start building your wealth without the need for a massive upfront investment.

Here at Bullion Standard, we aim to make gold investing accessible to everyone—and fractional gold coins provide an excellent entry point. In this blog post, we'll delve into why these smaller gold pieces might be the perfect fit for your investment strategy.
 

Why Invest in Gold?

Gold holds inherent value that makes it a solid choice for investors. During times of economic uncertainty, gold provides a reliable way to protect your money from inflation.

It also has a long history of stability. So, unlike stocks or bonds, gold's value remains relatively stable over time with only minor fluctuations.

Adding gold to your portfolio can offer peace of mind, knowing your investment is more secure. Plus, investing in physical gold means you have a tangible asset you can hold. This adds an extra layer of reassurance for many investors.

What Are Fractional Gold Coins?

Fractional gold bullion coins are exactly what they sound like—smaller, more manageable pieces of gold.

They weigh less than a troy ounce, which is the standard unit of measure for precious metals and is slightly heavier than a regular ounce. Fractional gold sizes include 1/2 ounce, 1/4 ounce, and even 1/10 ounce.

As smaller versions of regular gold coins, fractional gold coins retain all the charm and historical appeal of their larger counterparts.

Benefits of Fractional Gold Coins

1. Affordable Investment

The standout advantage of fractional coins is their reasonable price. They let you begin investing in gold without a significant upfront expense.

For instance, a standard one-ounce All American Gold Eagle coin costs an average of around $2,500, while a 1/10-ounce fractional coin is priced at approximately $350.

2. Spend Less Time Saving Money

Saving up for a larger investment like a gold bar can feel like a never-ending task. This is especially true if the price of gold rises. Fractional gold coins, however, let you invest in gold more frequently and with smaller amounts.

That way, you can build your holdings faster and without the long wait—making the process more manageable and less daunting.

3. Diversify Your Investment Portfolio

Fractional gold coins bring a level of flexibility that's hard to beat. With various sizes available, you can tailor your purchases to match your financial situation and goals.

This adaptability means you can spread your investment across multiple coins, reducing the risk of putting all your money into one large piece of gold. By doing so, you can better navigate market volatility.

4. Easier to Sell

Fractional gold coins make selling your gold much simpler. They allow you to liquidate a small portion of your holdings when needed, rather than parting with a larger and more costly piece.

This means you can access funds more flexibly, without disrupting your entire investment. You can maintain liquidity while still benefiting from the stability of gold in your portfolio.

5. Less Risk

Selling a large gold bar can be risky, as finding a buyer can take time and effort (that you might not have). The challenge of selling a high-value item also exposes you to potential market volatility and lower liquidity.

Fractional gold coins eliminate this issue by allowing you to sell smaller portions of your holdings. This not only reduces the risk but also ensures you have quicker access to funds.

6. Simple Storage

Smaller gold coins offer the convenience of easy storage. They fit seamlessly into your financial plans without taking up much space. A small safe deposit box will usually suffice.

In contrast, larger gold bars or bulkier investments require more complex and costly storage solutions.

This makes fractional gold coins ideal for everyday investors who want to keep their assets secure without the hassle of bulky storage solutions.

7. Portability

The small size of fractional gold coins makes them easy to carry, so you can move your gold without hassle. Unlike larger gold options, which can be cumbersome and require special handling, fractional coins can be discreetly transported with minimal effort.

This portability provides flexibility and convenience whether traveling, moving, or relocating your assets.

Collection Building With Fractional Coins

Start with Smaller Purchases and Grow

Fractional gold coins offer an ideal entry point for new gold investors. You can start with a modest investment and gradually add more coins when you're financially ready.

This incremental approach allows you to build a substantial gold portfolio over time. It's a simple way to increase your wealth while staying in control of your investments.

Plus, this method helps you learn and adapt as you become more experienced in gold investing.

Regular Investments

Fractional gold coins make it easy to invest on a regular basis. By purchasing them periodically, you can spread out your investment over time.

This strategy not only helps you manage your budget but also allows you to benefit from fluctuations in gold prices. Consistent investments can also lead to a well-rounded and potentially more profitable gold portfolio.

Drawbacks of Investing in Fractional Gold

While investing in fractional gold coins has many benefits, it’s important to be aware of some potential drawbacks before investing:

  • Higher Premiums: Fractional gold coins often come with higher premiums compared to larger gold bars or full-ounce coins.
  • Less Liquid in Large Quantities: Selling a large quantity of fractional gold coins can be more challenging and time-consuming than selling a few larger ones.
  • Potential for Loss: The small size of fractional gold coins makes them more susceptible to being lost or misplaced.
 

Start Investing With Fractional Gold Coins

Investing in gold doesn't have to be expensive or complicated. With fractional gold coins, you can enjoy the benefits of gold ownership without breaking the bank. They make gold investing accessible, flexible, and practical.

Looking for more guidance? Bullion Standard understands how daunting it can be to begin investing in gold. 

That's why we pride ourselves on providing tailor-made investment strategies and tips—so you can feel confident in your investment journey. Reach out to us today to see how we can help.