Should i buy fractional gold

For those of you who feel gold may someday be used as a currency for barter or trade, common sense tells us a smaller fractional gold coin may be more practical than the traditional one ounce coin.

An analogy I frequently use is that whereas a tenth ounce gold coin might yield an adequate amount of beef and milk in trade, the one ounce piece may force you to take the whole cow. A third advantage of fractional gold is similar to the aforementioned second advantage: cost.

Fractional gold coins are not only cheaper for gift givers but for investors as well. Unfortunately, there are several reasons not to buy fractional gold and those reasons revolve around cost.

Very simply, the smaller the unit of gold, the more it costs per ounce. Another factor is sales tax. Many states conveniently feel that fractional gold is not bought for investment purposes but only as jewelry or as a gift and therefore should be taxed.

If your motivation for buying gold is for gift giving or future barter or trade purposes, the added expense of fractional gold may well be worth it. Download our FREE 7 step cheatsheet to buying gold coins here.

Building your collection from scratch can be an absorbing experience. If you keep at it, over and over the years, your collection will grow and you could have a formidable gold coin collection. Many collectors frequently sell a few gold coins for a bit of liquidity and cash flow.

Fractional gold coins are ideal for this purpose, as it is possible to trade in them without selling off the more expensive coins from your collection. This is why some collectors like to invest in fractional gold coins. Numismatists all over the world are constantly on the lookout for trading opportunities that can help them acquire better coins for their collections.

In terms of liquidity , fractional gold coins are great as they offer good bartering opportunities, which is not always possible with gold coins that contain a higher amount of gold, with a larger value. As the price of gold rises, the value of your fractional gold coins is also likely to increase. As discussed earlier, fractional gold coins are typically cheaper to buy and so, investors looking to make quick returns from the price of gold would buy these coins when the price of gold falls.

Later on, as the price rises, they can cash in these coins and get quick returns. Gold investors are always looking to hedge their risks in the event of a global economic crash. However, liquidity is also an important factor. In the event of a global economic meltdown, most investors would move to gold and the price of gold would rise swiftly, as it did in Feel free to browse our gold bullion selection to find your next investment piece.

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