Gold Bullion Coins & Bars

Gold Bullion Coins & Bars

Should I Buy Fractional Gold Coins?

Many-a stackers, preppers and seasoned gold bullion investors have asked themselves “Should I buy fractional gold coins?” It should come as no surprise that gold remains one of the most consistently valuable precious metals in the world. Historically, gold has been used in currencies for thousands of years. Its spot price in United States markets continues to climb each year, making it an exceptional asset for investors looking to hedge against inflation of the U.S. Dollar. 

Although the high value of gold makes it a great asset to hold, its hefty spot price also discourages some investors who might not be willing to spend thousands of dollars at a time on gold bars or large coins. And not all buyers of gold are purchasing the commodity as an investment, either. Some survivalists buy fractional gold coins to use as currency if our financial system were to ever go up in smoke. And a growing number of bullion consumers are beginning to see how fantastic gold, silver, and other precious metals can be as gifts. 

If you’re looking to give your friends or family an unforgettable gift, gold coins have the backing of centuries of tradition. And the best part? There’s no need to break the bank in order to give an exceptional gift in the form of gold coins. Fractional gold coins allow people to tap into the high value and long-term collectability of gold without spending thousands of dollars at a time. 

buy fractional gold coins - 1-10 oz Krugerrand

Should you buy fractional gold coins? Our answer is a definitive “yes.” There are many reasons why the average consumer would want to buy fractional gold coins  or smaller denominations of popular bullion pieces. From gift-givers to investors and everything in-between, it’s hard to beat the high liquidity and long-term value of these coins. 

We’ll cover some of the main reasons to buy fractional gold coins in today’s guide. Whether you’re buying for yourself as an investment, or for others as a gift, there are many reasons why fractional gold coins are an unbeatable option for purchasing and holding gold. 

What is a Fractional Gold Coin? 

The term “fractional gold coin” just refers to any gold coin that’s smaller than an ounce in weight. Gold is generally measured in ounces. The spot price for gold is just the price in fiat currency per ounce of this shiny precious metal. The price for collectable gold coins is determined by taking the spot price for the metal of a given piece and adding a premium to it, which can vary based on the distributor and the specific coin. 

Full ounce gold coins can be extremely expensive. Many one ounce gold coins cost around $2,000, and some can run you even more. The upside is that many collectable coins retain (or even gain!) their value over time. This is especially true for old gold coins kept in relatively mint condition. But for the average consumer, spending $2,000 on a single coin just isn’t feasible. 

buy fractional gold coins - 1-10 oz Gold US Mint Lady Liberty

Many mints now produce fractional versions of popular one ounce gold coins. This allows investors to buy the same beautiful designs without dropping several thousand dollars on each piece. 

There are multiple different types of fractional gold coins. The smallest coin many bullion distributors sell is a 1/20 ounce gold coin. These pieces are especially popular as gifts, as they cost a mere fraction of their one ounce counterparts.  But keep in mind there are also a lot of decent options for fractional gold bars as well.  

There’s no reason to worry about the purity of fractional coins, as they typically contain the same gold purity as full one ounce versions. Their designs are also generally the same, meaning that the only real differences lay in the weight and price of these collectible gold bullion coins. 

Fractional gold coins are often offered in half-ounce, 1/4 ounce, 1/10 ounce, and even 1/20 ounce variants. Remember: the high price of gold means that even these low fractional denominations can retain significant value. This is one of the big benefits we see with folks who buy fractional gold coins; they are simultaneously valuable and easier to liquidate than larger versions. 

How Much do Fractional Gold Coins Cost? 

The answer to this question depends on a few different factors. The most important thing to consider when wondering about the price of a fractional gold coin is the current spot price of gold. As we mentioned in the above section, gold pieces are priced by adding a small premium to the price of the coin’s price in pure gold. 

The spot price for gold is being updated continuously. There’s no shortage of sites on the internet that can keep you updated on the precise value of an ounce of gold. As the spot price for gold by the ounce adjusts up or down, the cost of fractional coins will shift as well. 

As an example, 1/10 oz gold coins often cost around $200 each. This remains an exceedingly popular option for people shopping for gifts. Compared to a $1,800+ one ounce coin, these fractional coins make it possible for consumers to buy fractional gold coins and multiple gifts at once. Instead of dropping your entire holiday budget on a single expensive gold piece, many people are opting to buy cheaper high-quality fractional denomination coins. 

Some fractional gold coins may be additionally discounted because of their lower gold purity. Many gold pieces are struck using .9999 pure gold, meaning that their value should align closely with the spot price of the gold they contain. However, certain fractional coins might use lower purity, which can lower their total cost.

Advantages to Buying Fractional Gold Coins 

There are a number of reasons why you should consider investing in fractional gold coins. As we explained above, the classic advantage to smaller precious metal denominations is that it allows you to expand your asset collection without spending too much fiat cash. But there are also a few other advantages to preferring fractional ounce coins over their one ounce counterparts. 

First, these coins are the preferred method of giving gifts, especially during the holiday season. Whether you’re gearing up for an exciting Christmas with the family or the birthday of a friend, the gift of gold has been given by thoughtful consumers for generations. Let’s face it: most people aren’t prepared to spend multiple thousands of dollars on expensive bullion gifts. 

Imagine: you need to buy fractional gold coins or a bullion present for each of your three children. It’s not very likely that you’re ready to gift each one of them a $2,000 one ounce gold coin. Instead, purchasing three 1/10 ounce coins can cut your cost down to around $200 per coin. Like we said above, the exact costs can vary– but you get the point. Gold bullion is a fantastic gift, but it doesn’t need to be expensive. On this front, fractional coins have tremendous value. 

But gold bullion coins in fractional denominations aren’t just functional as gifts. Many people choose to buy fractional gold coins in order to maximize the liquidity of their investment portfolio. For people with faith in the long-term value of gold as a commodity, having a high quantity of gold pieces is certainty important. 

However, consider the case of an emergency that necessitates spendable fiat currency. You can’t quite pay for a trip to the hospital in one ounce gold coins! This is why it’s so important to try to maintain liquidity in your gold and silver bullion collection. Being able to quickly liquidate your bullion into spendable United States Dollars is a must. 

Fractional gold coins make it possible for investors to quickly turn smaller amounts of gold into capital without wasting large pieces. Simply put, you don’t want to have to sell off a $2,000 coin in order to pay a $200 medical bill. Physical gold is valuable, regardless of the weight of each individual piece. But building an investment portfolio filled with a large number of fractional gold bullion coins allows you greater control in case you need to liquidate quickly for cash. 

Disadvantages to Buying Fractional Gold Coins

While we’re a big fan of purchasing fractional coins as a way to boost the value of your collection without compromising on liquidity, there are also a few undeniable disadvantages to making this kind of purchase. To begin, you should consider how variable sales taxes may impact the overall cost of your investment. 

Some states have instituted an additional sales tax on bullion purchases of less than $1,000, which can make it even more difficult to get a truly solid deal on gold via bullion coins. However, this problem is relatively easy to get around. If you’re looking to expand your bullion collection with fractional coins, consider buying multiple at one time. With a total purchase of over $1,000, you might be able to avoid some pesky extra sales taxes. 

Be sure to educate yourself on the sales tax laws of your specific part of the country. Some states charge extra taxes on purchases of less than one ounce of gold, while others adhere to a stricter dollar amount. Getting a good grip on how taxation laws influence bullion purchases is never a bad idea. 

Fractional coins can also be more expensive than larger pieces of bullion. As a general rule of thumb, gold purchases of an ounce or more should be pretty close to the spot price of the precious metal. The larger the amount, the smaller premium distributors add onto the cost of the metal itself. 

Shopping around for the best deal is the best way to mitigate this disadvantage. Some bullion companies are able to charge a smaller premium on fractional denominations than others. Your goal should be to pay as close to the spot price of your gold as you can. 

Frequently Asked Questions About Fractional Gold Coins 

It’s understandable that many new bullion buyers have questions about how to buy fractional gold coins, as well as when, and why to purchase frac gold bullion coins. We’ve got you covered with answers to some of the most commonly asked questions we hear about this trending topic in the bullion community. 

Q: Which coins are available in fractional denominations? 

A: If you want to buy fractional gold coins, most popular coins can be purchased in fractional quantities. Canadian Gold Maple Leaf Coins, Gold American Eagle Coins, Austrian Gold Philharmonics, Australian 1/10 oz Gold Ox and other yearly releases are highly valued in their fractional denominations. The relatively low cost of these smaller pieces also makes it easier to start an annual collection. 

Q: What is the most popular fractional gold coin? 

A: When it comes to popular frac gold coin weights, tenth ounce, half ounce, and quarter ounce editions are coveted among many collectors. These coins are excellent alternatives to full one ounce pieces, which are both expensive and hard to liquidate. 

Q: Are fractional coins legal tender? 

A: In many cases, yes. The gold value of fractional gold coins generally exceeds their face value by a large margin. But coins minted in popular facilities like the U.S. and Canadian Mints generally carry an established face value backed by their governments. 

Q: Are fractional gold coins a good investment? 

A: We certainly think so. Stackers that buy fractional gold coins in small frac gold weights and denominations from popular sovereign mints rewarded with stability in it’s buying power. They are also very popular bullion investments, due to their accessible entry price and they also often carry additional value as collector’s items. 

The Bottom Line: Should I Buy Fractional Gold Coins? 

While there are certainly a few disadvantages to smaller denominations of gold coins, there are many reasons why you should buy fractional gold coins. The big upside to small gold coins is that they cost far less total capital than full ounce bullion pieces. If you’re looking for a beautiful and valuable gift during the holiday season, fractional ounce coins can do the trick without going over budget. 

Even the most seasoned investors in gold bullion appreciate the liquidity provided by fractional ounce gold bullion coins. No one wants to be in a position where they need to sell off thousands of dollars of gold in order to pay a much smaller bill or charge. 

If you’re planning to buy fractional gold coins and invest in a new frac gold bullion, consider reading up on your local and state tax laws concerning bullion purchases. In addition, shop around to find out which distributors are offering the best deals on the coins you’re searching for. Doing these things can help to offset two of the biggest disadvantages to buying fractional coins: the increased premium and tax burden. 

When it comes to buying bullion coins, bigger isn’t always better. In fact, most consumers can stand to benefit quite a bit from investing in popular fractional gold coins next time they want to up the ante on their collection. 

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One Grain Gold Bar – 6 Things You Need to Know

A one grain gold bar is an extremely small amount of gold. As a measurement, one grain is the same as .065 of a gram. Alternatively, a one grain gold bar is the same amount as 0.00208 of a troy ounce, which is another popular measurement used by bullion collectors and vendors. Gold is often sold in grains, and new buyers of gold might consider purchasing their bullion in grains before choosing to make larger investments. Because the amount of gold in a grain is so small, some investors also appreciate the level of control over gold quantity this kind of measurement allows them to have. 

A one grain gold bar is also an excellent choice as a small gift. With the holidays fast approaching, gold bar gifts are very popular. But gold prices can vary significantly. A one grain gold bar is no exception; prices can shift from month-to-month, or even from one day to the next! 

There are also a few smaller considerations in buying a one grain gold bar that consumers should be aware of. For example, new bullion collectors should become educated on which gold mints and distributors offer a certificate of authenticity with its gram bars. These certificates can ensure that a customer is receiving genuine gold bullion for their money. 

1. How much is a Grain? 

This is one of the first questions new bullion customers have when searching for grain quantities of gold. A grain is an extremely small unit of measurement. Gold is often sold in either ounces or grams. For this reason, it has been difficult in the past for bullion buyers to even find distributors of gold grains. But gold bullion companies have recently begun to take advantage of the massive market for grain amounts of precious metals. 

In short, a one grain gold bar is .065 grams. In other words, each grain is about six-and-a-half one-hundredths of a gram. Gold is typically sold using measurements set by the metric system. Grams, ounces, and kilos are some of the most popular amounts of gold in the industry today. But this does not mean that a one grain gold bar doesn’t have its own place in the hearts of some gold bullion collectors. 

One Grain Gold Bar Conversion Chart 

1 Grain Gold Bar1 Troy Ounce Gold Bar1 Gram Gold Bar
.0020833 Troy Ounces480 Grains15.432356 Grains
.064798918 Grams31.1 Grams.03215075 Troy Ounces

There are many sites online that allow consumers to convert a number of grains into grams, ounces, or even kilos. These tools can make it quite a bit easier for new bullion collectors to buy the right amount of gold for their purposes. Someone buying a gift of gold for a young child on Christmas, for example, might not need a whole gram or an ounce of gold. For people in this situation, grains of gold may be the perfect way to buy. 

2. Why Buy a Grain of Gold? 

There are several reasons why someone might not want to buy an entire gram, kilo, or 1 ounce of gold bullion. Like we mentioned above, grains of gold are excellent for smaller gifts. The value of gold is more than just monetary. Millions of bullion collectors around the world prize gold for its beauty, collectability, and intrinsic value. While financial systems may come and go, precious metals have always won the hearts of people. 

1 Grain Gold Bars

For this reason, smaller amounts of gold are often used as gifts. Grains of gold could be excellent stocking stuffers, for example! While each one grain gold bar is only worth a small amount of money, combining several grains can increase the value of the gift pretty significantly. 1 Grain gold nuggets are also a popular gift given all over the world. Although this amount of gold is very small in weight, it can still be very pure. 

24 Karat Gold is often considered to be the standard among bullion collectors all over the world. It is the purest kind of gold that consumers can buy. Grain quantities of gold can certainly be 24K. People who want to buy 1 grain gold bars as gifts should consider looking for the purest strike of gold they can find. 

Some investors might also use grain measurements for gold to help increase the liquidity of the collections. Larger weighted gold pieces, such as ounces or kilos, require the investor to liquidate a large portion of their stock at one time in order to obtain the cash they need. If times get tough, it’s often considered wiser to have a high quantity of lower weights of gold. This strategy provides greater reflexibility for when gold investors eventually need to turn their solid metal into liquid capital. 

3. Price of Gold in Grains

The price per grain of gold can easily change from one day to the next. The value of this measurement of gold is dependent on the spot price of gold. This term refers to the price that the open market is generally charging for a bullion asset. It is also often called the ‘market price’ of gold. Obviously, when the market value of gold increases, so does the price of gold per grain. 

1 Grain Gold Bar 24K

Figuring out the price of a one grain gold bar is not particularly difficult. Gold price tracking websites often include an option for ‘grains.’ Bullion enthusiasts who want to make the calculations themselves can do so by taking the price of a troy ounce of gold and multiplying it by 0.00208. This should present the general price of each individual one grain gold bar, although some companies may charge slightly more or less.

However, the price per grain also depends on its level of purity. Like we explained in the above section, gold purity is measured in Karats. 24 Karat gold, or 24K, is the purest kind of gold available on the open market. 24K is .9999 pure. This means that nothing else is added to the gold; it is completely pure. The most common spot price for gold grains relies on the 24K purity. However, people who want to increase the quantity of gold they receive for their money can do so by decreasing the purity of the gold they shop for. 

4. Grain Gold Purity

Like all quantities of gold, grains can come in varying purities. Some bullion distributors sell low-purity gold. This is generally the preference for people who want to buy as much gold as they possibly can. However, the downside to this strategy is that lower purities may be harder to sell if the time ever comes to liquidate stock. 

Gold is measured in Karats or K. Karats are often confused with carets, which is a measurement used to weigh gems. In order to be classified as 24K, which is the highest possible purity given to gold, a bullion product must contain over 99.95% pure gold. Karat designations go all the way down to 6K, which would be 25% pure gold. 

While lower purity gold is surely more affordable, this affordability comes at a price. Low purities have a different appearance than the 24K gold that some consumers prefer, as different metals make up much of the item’s composition. 

When it comes to one grain gold bars, this question of purity is much the same. Consumers can choose to purchase shinier, more expensive grain gold products, while others may prefer cheaper but less aesthetically appealing low-purity versions of the same products. 

5. Where to Buy One Grain of Gold

There are a number of ways to purchase gold in grains. While grains often aren’t quite as popular as some larger weights, they are nevertheless available from several different retailer types. Local coin stores and pawn shops are a good place to start searching. Sometimes, bullion products will be available from local stores at an increased discount. But this is not always the case; some local gold salespeople may mark their grain gold up at a premium.

1 grain gold bar

In some ways, online retail is the way of the future for fans of gold, silver, and other precious metals. ECommerce companies can often offer gold and silver at reduced rates by accessing a wider network of wholesale bullion distributors. Some online retailers even have access to gold distributed directly from its original mint. 

It is important that new purchasers of gold and silver carefully vet the companies they do business with. In particular, paying attention to the shipping methods of gold bars is essential. Some companies use lax shipping methods to distribute to their customers.

This can lead to chipping, marks, or other blemishes that can really ruin the value of bullion. This is especially important for items with collectible values, such as coins. But it is also important to avoid bad shipping practices with bars and other forms of bullion, including gram bars and grain bars alike. 

6. Grains vs. Grams

Some people confuse 1 Grain gold bars with 1 gram gold bars. In fact, so many people mix the two measurements up that a few eCommerce companies have put “NOT GRAMS” in parentheses for all grain-sized bullion commodities they sell! In reality, there’s a big difference between a gram gold bar and a grain, despite how similar they sound. 

A 1 grain gold bar is .065 of a gram. It takes around 15.4 grains of gold to equal one gram of gold. This makes gold grains one of the smallest possible measurements of gold available. This doesn’t mean that a one grain gold bar is too small to be of any value. Some companies sell 1 grain gold bars with similar designs to their gram-sized counterparts. Designs on grain bars and grain nuggets can be intricate, making even small quantities of gold a valuable collector’s item to many people. 

Frequently Asked Questions About 1 Grain Gold Bars

Readers have frequently asked questions; we have answers. This section will answer some of the biggest questions new bullion purchasers have about buying a one grain gold bar. 

Q: Are gold bars better than gold coins? 

A: The answer to this question depends on a few factors. The big advantage to gold coins is that they are highly collectible. With yearly releases and brilliantly intricate designs, gold coins bring along with them a long history and a collectible appeal that bars just might not be able to match. But gold bars also have their place in a collector’s vault or safe; their simple designs and classic look are really something to value. 

Q: Does a grain weigh less than a gram? 

A: Yes! A 1 grain gold bar is approximately .065 the weight of a gram. It takes over 15 grains to make up the weight of just one gram. This makes grain gold one of the easiest ways for less wealthy people to gain access to gold bullion of various kinds. 

Q: Where can gold be purchased? 

A: Collectors can buy gold from many different retailers. Local pawn shops and gold/silver brokers are a popular option. We generally recommend against buying gold, silver, and platinum from Craigslist, as this site includes little accountability to prevent scammers. Online retailers often provide the greatest selection of gold and silver products. 

Q: What is the smallest gold bar size? 

A: 1/10 of a grain of gold is likely the smallest gold bar available online. Typically, bigger gold retailers will sell a grain as their smallest quantity of gold, although this is not always the case. 

The Bottom Line

One grain gold bar products are a great way for new and old bullion collectors alike to boost the value of their collections. While a grain is only .065 of a gram, this small quantity helps provide increased liquidity to the collection. It’s always easier to quickly sell a bunch of smaller bullion pieces than one large one, if the need arises. 

As always, it’s necessary that bullion consumers carefully research before making any purchase of gold or silver bars. Even though one grain of gold is not typically going to break the bank, taking proper measures to prevent damage during the shipping process is very important. Additionally, we advise that collectors stay away from sites like Craigslist to avoid being scammed. 

Grain as a measurement of gold has many applications. But for many consumers, a one grain gold bar is a great way to give the lasting gift of gold without spending too much. Gold prices can change from day to day, depending on a multitude of market factors. Despite its low price, many retailers sell grain quantities of gold in an extremely high purity. 

Hero Bullion offers a wide variety of gold and silver bullion products. Our shipping process ensures that coins and bars are delivered without the threat of damage, chipping, or other blemishes. We make it easy for gold collectors to buy the bullion products they want without all the hassle.

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Gold or Silver as an Investment

Gold or Silver as an Investment?

The answer isn’t always straightforward when considering buying Gold or silver as an investment. Novice investors often find themselves confused about what to purchase with the overwhelming number of options available on the market. “Should I purchase a minted bar or stick with coins?” is one of many questions that arise when shopping for precious metals.

There’s another risk associated with these investments. Asking a gold or silver trader for advice is like going to insurance companies for financial information, leaving with an insurance product you didn’t want or need. Other dishonest dealers might trick you into buying collectibles with huge premiums and won’t retain its value.

Choosing gold or silver as an investment is easy if you list your requirements. Your needs differ from other investors; it’s sensible to have an idea about your requirements and needs, so you have the correct information to make the right investment decision. It’s essential to have a working knowledge of precious metals and their markets before stepping into unchartered territories. 

Here in this article, we will cover enough information so you can decide if Gold or Silver is the best investment for you. Let’s go back to the very beginning.

A brief history of Gold & Silver

Looking at the history of gold or silver can sometimes clarify your decision. Gold is one of the first [of five] precious metals initially discovered by man, extracting Gold “nuggets” from the ground and streams. Its rarity became a symbol of royalty and adopted quickly as a commodity used for jewelry. Due to its physical properties Gold replaced the barter system during 700 B.C., simplifying transactions using currency. 

Gold was mined by the Greeks, melted down by Egyptians, and technological strides perfected by the Romans, and became a bimetallic standard for minting money by the U.S. Congress in 1792. The discovery of Gold in the United States is known as the “California Gold Rush.”

Silver is another of the five metals initially discovered by man. Specific dates are unknown but trace back to the Sumerian city of Kish in 3000 B.C.; Greece and Anatolia, 4000 B.C. During the Greek and Roman civilizations, silver coins served as currency. After exhausting Mediterranean silver deposits, Central Europe became the leaders in silver production throughout the middle ages. 

As the Spanish conquistadors plundered across Europe for precious metals, the United States emerged as the frontrunners in silver production creating a global exchange through commodities trading until the 18th century. Today there’s a balanced distribution of silver around the globe; Peru and Mexico the leaders in production.

Gold to Silver Ratio explained

The gold/silver ratio helps identify an opportune time for their trade, purchase, or sale. In short, “how much silver will I need to purchase an ounce of Gold?” For a 15:1 ratio, you would need 15 ounces of silver to purchase one ounce of Gold.

Gold or silver as an investment

As the gap widens, silver becomes a favorable commodity and the purchase of precious metals shifts from Gold to silver. 

The ratio has fluctuated over the years, so let’s consider the trends in Gold or Silver prices.

Trends

Gold prices.  The price of Gold is a hedge against currency depreciation and inflation; making it relatively stable in the long run, although fickle at times. 

Measuring dollar value against Gold caused prices to slump to $236 per ounce due to dollar devaluation in 1970.  In 1980 its value rose to $1,762 per ounce. Investors moved towards Gold, seeking relief from high oil prices sparked by Afghanistan’s Soviet intervention and the Iranian revolution. 

In 2001, the price of gold (per ounce) was $381; in 2011, $1,544.63 – A 305% increase in 10 years. 

Silver is considered more volatile than Gold, seeing highs of $117 per ounce in 1980 and lows of $6.71 per ounce in 2001. Predicting the price of silver is a challenging feat. The ways silver is used vary greatly, creating a highly segmented market. Determining value among such differentiation is a task for the mathematician – maybe a magician. 

Still, people realized silver’s value proposition. From 2001 to 2011, prices soared, resulting in a 547% total increase ($6.72 per ounce in 2001 and $43.48 per ounce in 2011) – a significant rise in 10 years. 

Economic conditions have a considerable impact on investments, and the 2008 financial crisis influenced the movement from stock investment toward a stable alternative – precious metals. The crisis period gave way to increased prices of Gold or silver like never before.

Comparison of the last decade (May 2011 to May 2020)

When trying to compare gold or silver as an investment it is important to look at the relationship between Gold and silver (the ratio concept) in the last decade is apparent in the graphs. 

Gold dictates the price of silver. As you follow the graph, you’ll notice silver prices decrease as Gold prices increase despite minor fluctuations, indicating Gold’s long-term stability; silver, on a steady decline. 

Let’s compare the market trends from 2013 to present-day 2020. The value of Gold increased by 21.7% – $1308 in June 2013, and $1593 in March 2020. Silver’s value decreased by 34.2% in price per ounce – $21.37 in June 2013 and $14.06 in March 2020.

Modern uses of Gold & Silver

According to a Sunshine Profits report, physical Gold is estimated at 190,000 tons, nearly 6.1 billion ounces; a  $7.3 trillion total market worth, calculated using 2018 market values. 

In the last three years, gold prices have reached new highs pushing the total market worth well over reports previous.

Some modern-day uses for Gold or silver will help explain the high demand and low supply. 

According to Statista, 52.44% of mined Gold went to jewelry production during 2018; 9.12% used in the manufacturing of Gold bars and coins; due to its conduction efficiency, another 9.12% utilized in electronic components like switches and connectors and 6.54% used in the aerospace industry.

Looking at silver, Sunshine Profits report an estimated 780,000 tons, approximately 25.1 billion ounces of physical silver for a total market worth of $3.5 Trillion, calculated using 2018 market values. 

Silver prices remained steady in the last three years, sustaining minimal fluctuation, amounting to a $3.5 trillion market value worth. Below, a view of modern-day uses for silver.

According to Statista, in 2018 the majority of the silver produced (42%) was used for industrial electronics – an excellent thermal and electronic conductor; brazing alloys, batteries, dentistry, glass coatings, LED chips, medicine, nuclear reactors, and photography. 16% of the supply is used in jewelry, 13% for the production of silver bars and coins, and 4% for silverware production. 

Benefits and Challenges to owning physical Gold & Silver

Now that we’ve gone over the history, trends, and modern uses of precious metals, let’s get down to brass tax (pun intended) – the main advantages and disadvantages of Gold and silver. 

Gold- Pros and Cons

Higher stability over silver

Risk-averse investors prefer less volatile Gold over silver. In 2019 the Gold supply amounted to 120 million ounces, with a total retail value of $192.6 billion. Silver, however, amassed 1 billion ounces with a lower retail value [in contrast] of $16 billion. Slight changes in silver prices disrupt the market, while Gold short in supply, is minimally reactive and steady. 

Silver has the potential to be an ally for investors. In the bear market (decline), silver prices take a deeper dive than Gold. However, silver is a raging bull and reigns supreme over Gold, when the market rises.

Widely recognized

Gold is one of the most widely recognized metals. Aside from its use in jewelry, Gold replaced the ancient barter system. It’s association to rarity and wealth in times past, it has slowly become mainstream making its way into consumer products, electronics, even human consumption.  

Comes in different shapes and sizes

Gold is an excellent option for investors because it comes in different sizes, shapes, and forms. Too, variations in form such as pure yellow Gold, white, and rose Gold present style choices. It appeals to investors and collectors on the enthusiast spectrum, making it an ideal option for investment. 

Easy to establish value

Gold is quantifiable and it’s monetary value is established easily – spot-price x weight. Use the current spot-price per ounce, and multiply by gold weight. 

If the spot-price per ounce of Gold is $100, and you have two ounces of Gold, the total value is $200. Click now to view the spot price of Gold and see what yours is worth! 

Buy and sell almost anywhere

Gold is considered a highly liquid asset. Due to its popularity, prestige, and recognition, it’s sold and purchased easily at jewelry stores, pawnshops, banks, and the online market.  

Store of value in a small space

The price of Gold per ounce is considerably higher, but easier to store than silver.

Small pieces can be expensive

Not everyone has the means to invest in Gold. More rare than silver, one ounce comes at a hefty price tag; A one-tenth ounce American gold eagle is roughly $200.

Durability

It’s the most malleable of all metals, soft enough to change shape under pressure. Jewelry consisting of Pure Gold scratches easily and cannot withstand the stresses of everyday wear, affecting value. Often gold is mixed with alloys to add strength, compromising product quality. 

Insurance and safe storage

Storing the commodity of gold or silver presents some challenges. You can keep it in a shoebox at home (we don’t recommend it), in a safety deposit box, or a third-party storage firm. Each poses advantages, and natural concerns.

Storing gold or silver at home keeps it within reach should you need it quickly; however, if you lose a Gold bar, it’s probably gone for good. They don’t come with certificates of replacement for a small administrative fee. Too, there’s the potential for reduced liquidity. Gold or silver bars need refining [increasing your expenses] before selling. 

Many prefer to pay the annual fee for a deposit box. It’s secure, and access is strict and procedural. However, access is limited to bankers hours. In a situation demanding liquid cash, fast, make sure the immediate need occurs between the hours of  9 a.m and 5 p.m, Monday through Friday.

And, the contents of your box isn’t insured automatically. Your friendly neighborhood bank is not that friendly. Plan on purchasing insurance; it’s often pricey.

A depository is behind door number three. Investors get a healthy geographical and political diversification of assets. It provides great liquidity, sells quickly, with funds wired to your account the following day.

Trouble ensues should the private firm go bankrupt. “In a serious relationship” one day, to “it’s complicated” in the next. Like a social media status, but a much bigger deal. 

Silver- Pros and Cons

A more affordable way to invest in precious metals

The price-per-ounce for silver is relatively inexpensive and more affordable than Gold or silver, making investments possible for those in every income bracket.

Just like Gold, silver has outperformed the broader commodities market and delivered substantial gains upwards of 16% from Q4 2018 through February 2020.

Many widely recognized coins and bars available at low premiums

Silver offers many options. Intricate, well-designed coins high in purity, have a higher premium compared to other silver products. Market availability for low premium coins allows you to make more money during price increases.  

The same goes for silver bars. The bigger the bar, the smaller the premium. It costs the refiner just as much to produce a silver kilo bar as it does a 1-ounce bar.

Many places to buy and sell 

Silver is widely accepted and favored. It’s purchased, sold, and traded easily online, through brokers, local pawn shops, or obtaining precious metals motifs (investing in a group of mining companies with a single purchase).

Easily divisible

Silver is easily divided, perfect for the barter systems in many ancient civilizations. A silver dime has only 0.0715 ounces of silver, roughly about $1.10. 

Requires a larger storage space than Gold

Storage becomes a concern for any investor purchasing silver. 

Tarnishes/oxidizes without proper care 

Over time, silver goes through a chemical reaction that leads to tarnishing. Consider your kitchen cutlery. Does it have a black film that won’t wash off? It needs polishing, then stored correctly, without high humidity and heat. 

Maintenance and protection becomes time consuming (and a hassle for some) if you have flats of silver lying around. 

Generally higher premiums 

Purchasing more than $1,500 worth of gold or silver comes at a higher premium percentage than Gold of the same value. Based on spot-price, investments of $1,500 or less, are best suited in silver. If you plan on spending more than $1,500, you’re best suited to invest in Gold. Silver premiums increase in concert with amount spent.   

The wrap-up

Main points to pocket when considering Gold: 

  • Gold is less volatile than silver
  • It’s widely recognized 
  • Value determined easily 
  • Stores well in small spaces
  • Available in multiple sizes 
  • Many places to buy and sell. 
  • The commodity is expensive to purchase and insure 
  • Malleable, soft precious metal

Main points to pocket when considering silver:

  • Silver is more affordable, can get at 
  • Lower premiums, 
  • Easily divided  
  • Bought and sold at many places 
  • Requires more storage space than Gold 
  • Tarnishes if not stored correctly
  • Generally has a higher premium percentage than Gold 

Some have a higher risk appetite and invest in one bullion type for more significant gains; it’s a matter of preference and financial ability. Most investors have some of both precious metals, creating a well-rounded and stable portfolio that stands up to enduring economic uncertainties and an ongoing pandemic.

There’s no time like the present to diversify your investment strategy with the secure purchase of premium, authentic precious metals. 

If you’re an investor or collector trying to decide between gold or silver or a seasoned precious metals enthusiast, or just getting started, we can help. 

Browse through our selection and take the first step towards future investments with the click of your mouse (or a tap on your mobile device). 

We hope this article removes the confusion or hesitancy keeping you from exploring investor and collector’s grade, fine Gold or silver.

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