What are Fractional Gold Bars?
Fractional gold bars are small bars of gold that weigh less than a standard one troy ounce gold bar (1 oz t). According to some precious metals experts, over 95% of fractional gold bars are composed of .9999 fine gold (four nines fine), or 99.99% pure gold, ensuring their purity and value. Four-nines-fine gold is more than enough to qualify as 24 karats. Some jewelers even use 24-karat fractional gold bars in jewelry making.
1 troy ounce weighs around 31.103 grams, so as long as the gold bar weighs less than this it will qualify as a fractional gold bar whether or not the seller or collector claims it to be “fractional gold.” Not every gold buyer, seller, collector, stacker, or investor uses the term, but it is a common term in the precious metals industry. Some people call them ingots, while some simply refer to them as bars. Additional fractional items that fit under the fractional category may include fractional gold coins (also commonly called fractional gold bullion coins), fractional silver bars, and fractional silver coins.
The Benefits of Fractional Gold Bars
Fractional gold bars offer an affordable way for investors to own gold without purchasing a full ounce. Fractional gold bars are often considered a convenient gift or collector's item for those interested in precious metals. These gold bullion bars provide flexibility in buying and selling smaller amounts of gold. Due to their content, convenient size, and purity, they are considered to have high liquidity which means they tend to sell quickly and easily.
With the gold spot price currently dancing around $2000 per ounce, fractional gold bars are a great option to invest in gold at a lower weight but with a lower price tag as a result.
For example, if gold is $2000 per troy ounce, that would mean a 1-gram gold bar, or ingot, would cost around $64. This would mean a 10-gram gold bar would cost around $640, and a 20-gram gold bar would cost close to $1280. However, most companies that sell fractional gold bars cannot afford to sell their gold at cost, so they add on a premium which is just the standard cost of business. Reputable online bullion dealers will be transparent and freely provide this information on their website displayed for all to see.
Typically, the smaller the amount of metal a person buys, the higher the percentage of the total cost is in premiums. This is another reason why buying in larger quantities is better in the long term. Nevertheless, not everyone can start out buying a one-ounce, or heavier, gold bar. This low-cost barrier to entry is what makes fractional gold bars a great option for beginner investors and those who are strapped for cash and in need of lower prices. Some would say that fractional gold bars are a great entry point for gaining experience in precious metals, and we at Money Metals agree!
Investment Potential of Fractional Gold Bars
Buying fractional gold bars is a great way to build a personal store of value, hedge against inflation, and preserve wealth. Of all the precious metals, including gold, silver, platinum, palladium, and rhodium, the main metal to stand the test of time, cultural differences, conflicts, and economic ups and downs has been gold. For most gold investors and collectors, gold is the superior choice for precious metals and maintains purchasing power.
Fractional gold bars are a much more cost-effective method of stacking gold assets when compared to collecting numismatic coins such as those from sovereigns such as the Royal Canadian Mint, Australian Perth Mint, Niue, Austrian Mint, British Royal Mint, South African Mint, Mexican Mint, or even the US Mint.
There are a variety of denominations and sizes of quality fractional gold bars to choose from on the primary market and secondary market. Money Metals carries a significant quantity and range of fractional gold bars in various sizes to offer you a greater selection to choose from.
Fractional gold bars typically come in weights such as:
- 1 gram
- 2.5 gram
- 1/10 ounce
- 5 gram
- 1/4 ounce
- 10 gram
- 1/2 ounce
- 20 gram
Some mints and refineries that produce fractional gold bars include the following companies:
- Pamp Suisse
- Valcambi
- Geiger Edelmetalle
- Istanbul Gold Refinery (IGR)
- Republic Metals Corporation (RMC)
- Sunshine Minting Inc (SMI)
- Credit Suisse
- Argor-Heraeus
- Essayeur Fondeur
Smaller-sized fractional gold bars typically come in protective packaging that includes an assay card. An assay can be a process of testing precious metal items, and an assay card or assay package affirms the assay testing process and its results. An assay affirms the metal content, weight, and purity, with a guarantee from the company itself. Many products also come with a Certificate of Authenticity (COA) that further assures buyers that the product they believe they are buying is what the company or seller claims it to be.
Selling and Trading Fractional Gold Bars
When selling your fractional gold bars on the secondary market, by having an assay and a COA, you may have somewhat of an easier time selling the product. It is usually an added benefit at no additional cost to the buyer to have the assay card and the COA. If your fractional gold bar comes in this protective packaging, do not remove it.
Aside from the assay and COA, when selling your fractional gold bars, there are a few other factors to consider.
When you are ready to sell your fractional gold bars, be sure to know what that day’s gold spot price is so you get a fair price for the items. After conducting proper spot price research, be sure to look up what the average buyback price is for the particular fractional gold bars you wish to sell. This does not mean you have to sell it to the company you bought the item from originally. In fact, Money Metals actively buys gold, silver, platinum, palladium, rhodium, and copper bars, coins, and rounds from almost anyone in the United States (U.S.) without a minimum.
Lastly, whether selling or buying fractional gold bars, it is important to only conduct business with reputable dealers to prevent becoming a victim of any scams. Numerous people will go to popular auction websites or sites that are unknown in the market, and then send their items to these people who never pay; or they send payment for precious metal items, but never receive the items, or they pay for something and do not get the genuine items they believed they were paying for. It is unfortunately far too common of a story for beginners in the precious metals industry. Only buy, sell, or trade with reputable dealers.
Storage and Security Options for Fractional Gold Bars
When storing your collectible fractional gold bars, it is first important to keep them a secret for additional security if you are keeping them in your home. To keep your fractional gold bars safe you can choose a home safe, store them in a home vault, store them in a bank safe deposit box, or keep them in a professional depository such as the Money Metals Depository. Storage in the depository keeps everything safe and insured.
For many beginners, this may come as a surprise - the Money Metals Depository is a cost-effective, secure, and safe way of storing your fractional gold bars. This is also an option if you wish to put your fractional gold bars in a self-directed precious metals Individual Retirement Account (IRA). Most gold items with a minimum fineness of .995 qualify for such an IRA, including fractional gold bars sold by Money Metals Exchange. Since most fractional gold bars are .9999 fine, they likely qualify for such an IRA.
Money Metals Exchange has been in business since 2010 while maintaining an A+ rating with the Better Business Bureau (BBB) and receiving thousands of 5-star reviews from satisfied customers all over the US.
Money Metals has been voted as the Best Overall Precious Metals Dealer by Investopedia multiple years in a row.
When you buy a gold bar from Money Metals, you receive your exact items quickly and at a fair price. When you sell your fractional gold bars to Money Metals, no matter where you purchased them in the past, once your items are received and tested you will receive payment quickly and at the exact amount stated.
If you are just getting started collecting fractional gold bars or investing in gold, our friendly and knowledgeable customer service team is available to help walk you through it so you can feel equipped to make the best decision for your gold purchase. Give us a call Mon-Fri during normal business hours at our phone number: 1-800-800-1865
Frequently Asked Questions about Fractional Gold Bars
If you have any questions (FAQ) about fractional gold bars, fractional silver bars, fractional gold in general, fractional junk silver coins, buying a coin or round from the US or somewhere else in the world, placing an order, reviewing previous orders, payment methods, shipping, insurance, signature at delivery, selling your items, the Money Metals Depository, the Money Metals monthly savings plan, or anything else, please call our customer care team at our phone number: 1-800-800-1865
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