What is Fractional Gold?

Fractional gold refers to gold coins or bars that weigh less than a standard troy oz. The name “fractional” comes from the appearance of these coins when listed for sale. A coin that weighs one-tenth of an ounce is also known as a “1/10 oz gold coin.” 

Fractional gold coins are a popular way to invest in precious metals. By buying fractional gold, you can build your gold stack while saving a considerable amount of money. After all, a full ounce of pure gold bullion can cost thousands of dollars. If you’re investing on a budget or prefer the look and feel of a smaller gold coin, fractional gold might be for you. 

What is fractional gold, and why should you consider adding it to your portfolio? This guide will walk you through everything you need to know about finding, buying, and selling fractional gold coins and bars. 

Fractional Gold: An Introduction 

So what is fractional gold? If you’re a new investor, you’ve probably come across this term while reading through our guides to buying and selling gold. 

Fractional gold coins weigh less than one ounce each. Get it? They’re a “fraction” of the gold content of a large 1 oz gold coin. Gold bars can also be fractional, and the basic concept is the same. We’ll focus mainly on gold coins in this guide, but you can scroll down for some introductory information about investing in fractional gold bars as well. 

Fractional Gold Vs. 1 oz Gold Coins 

Like we mentioned above, fractional gold just means gold products that weigh some fraction of a full 1 oz coin. Fractional gold coins vary in weight. Some of the smallest gold coins we sell are 1/10 oz, which means that it would take ten of these smaller coins to stack up to a full one ounce gold coin. What is fractional gold compared to 1 oz gold coins?

Other fractional gold products are closer in weight to 1 oz. We find that the ½ oz American Gold Eagle is a particularly popular seller. Some stackers choose to buy several fractional gold products instead of one 1 oz gold coin. 

Doing this can improve your portfolio’s diversity. Instead of spending all your money on a single 1 oz Gold Eagle, you could instead get two ½ oz coins from lesser-known mints for a similar price. 

Why Buy Fractional Gold? 

What is fractional gold, and why is it a popular way to invest in gold bullion? There are several reasons why people invest in fractional gold coins. For this guide, we’ll focus on 3 main benefits to buying fractional gold: lower entry cost, beautiful designs, and high liquidity. 

Lower Entry Cost

Once you know the answer to, “what is fractional gold,” you’ll probably have a pretty good idea of why this type of gold product is useful. Because fractional gold contains the same purity as larger gold coins but a smaller weight, they only cost a fraction of that 1 oz gold coins would cost you. 

This is fantastic for new investors, or even seasoned investors who just want to build their stack without dropping $2,000 on a full 1 oz gold coin or bar. What is fractional gold? For some investors, it’s a way to start putting money on gold without paying the high entry fee required by larger gold products. 

Beautiful Designs 

Some collectors might be concerned that fractional gold coins don’t offer the same classic look and beauty of large 1 oz versions of their favorite products. This couldn’t be further from the truth. What is fractional gold designed to look like? Fractional gold coins look identical to their larger 1 oz gold coin counterparts. 

If you have a favorite bullion coin from a reputable government mint, there’s probably a fractional gold version available. We find that investor demand for the 1/10 and ¼ oz Gold Britannia is consistently high, even when compared to the full 1 oz coin. 

Back before the advent of modern mint technology, small coins posed a challenge for artists who wanted to adorn them with beautiful, intricate designs. But new tech means a new era for fractional gold collectors. When you buy a fractional Gold Eagle, Britannia, or Maple, expect to find the same impressive craftsmanship that made their 1 oz coins so famous. 

What is fractional gold? We think fractional gold is a cheaper way to invest in the same beautiful gold coins you love. 

High Liquidity 

What is fractional gold’s liquidity? Liquidity refers to our ability to quickly and easily sell gold products. At some point in your stacking journey, you’re going to want to convert at least a portion of your gold into usable cash. This is where fractional gold really shines. 

If you have a collection consisting mainly of large 1 oz gold coins and bars, liquidating means you’ll have to part with several thousands of dollars in gold at one time. With fractional gold, liquidating your stock becomes quite a bit less taxing. 

Fractional gold coins are worth less than full 1 oz gold coins and bars – at least where melt value is concerned. If your gold portfolio is properly diversified using coins of various weights, it should be easy to liquidate for quick cash without having to cripple your collection by selling thousands of dollars in gold at one time. What is fractional gold for investors? Savvy investors can use fractional gold to save money while still building their stack. 

Downsides of Fractional Gold 

Fractional gold also comes with a couple considerable downsides. If you’re a smart investor, you might be able to take advantage of the benefits of fractional gold without suffering the consequences of buying ‘small gold.’ Still, we want you to be as informed as possible before you invest in fractional gold. 

So what is fractional gold’s main downside? We identify 2 main disadvantages of fractional gold: varying mintages and a limited selection. 

Varying Mintages 

What is fractional gold, and how frequently are they minted? The answer to this one depends primarily on what kinds of coins you’re looking at. Some fractional gold coins are minted in higher numbers than full 1 oz gold coins. Others might be low mintages, which is great news for numismatic collectors who plan to resell their rare mintage coins in the future. 

To figure out the mintage figures for your preferred fractional gold coins or bars, check out the mint website. Most government mints are relatively transparent about how many of a given coin they manufacture, which can be helpful if you’re planning on buying several of the rarest fractional gold pieces during a given minting run. 

Limited Selection

What is fractional gold, and which coins offer fractional versions? Not all popular gold coin series offer fractional versions. Some of our favorite releases, including the Canadian Gold Maple and American Gold Eagle, are available in 1/10, ¼, ½, and full 1 oz weights. Other mints might not prioritize fractional gold or may only release fractional variants of their best-selling coins during certain years. 

This means that you do have a pretty limited selection of fractional gold coins and bars, especially when we compare fractional gold to full 1 oz gold coins. 

Popular Fractional Gold Coins 

Once you can reliably figure out, “what is fractional gold,” you’ll need to understand the most popular fractional gold coins on the market. This isn’t a tough task; many of our favorite coins are available in fractional weights, making it easy to stack fractional gold without compromising on design. 

Check out some of the best fractional gold coins we have to offer below. We’ll take a closer look at the fractional American Gold Eagle, Gold Britannia, and Canadian Gold Maple to give you a better idea of the best fractional gold to buy. 

Fractional American Gold Eagles

The American Gold Eagle is a certified bullion classic for a reason. The coin was first minted in 1987, and it’s been a smashing hit ever since. On the obverse, you’ll find Lady Liberty as she walks away from the United States Capitol. A rising sun shines behind her, and she wears a flowing gown. In her hands, you’ll note two classic American symbols: the olive branch and a torch. 

The reverse is where this fractional gold coin gets its name. What is fractional gold from the U.S. Mint likely to depict on the reverse? The American bald eagle, of course! The fractional American Gold Eagle features the same reverse-side depiction of an American bald eagle. For releases after the year 2021, the coins will include a portrait of the bald eagle’s head. 

British Gold Britannia Coins

What is fractional gold, and what’s the most popular fractional gold coin from Britain? The answer is pretty clear if you know anything about the history of the Royal British Mint. For decades, their Gold Britannia has been the standard coin distributed from the Royal Mint, which is one of the oldest mints in the world. 

The obverse depicts a portrait of Britain’s current monarch. Until 2021, this was Queen Elizabeth II. But with her recent death, new coins in the Gold Britannia series will include an obverse portrait of King Charles III, the new King of England. 

As the name of the coin suggests, the reverse pays homage to another important British symbol: Britannia. Lady Britannia has been used as the female personification of the British Isles for centuries. Even the Ancient Romans viewed Britannia as a symbol for Britain. 

On this coin, she stands on a rocky cliff wearing her classic flowing gown. She carries two items: the shield of Britain and a trident. Like the full 1 oz version, fractional British Gold Britannias contain some of the most state-of-the-art security features in the history of British coinage. 

Canadian Gold Maple Fractional Coins 

Our final pick for the best fractional gold coins is the Canadian Gold Maple. Gold Maples should need no introduction. Distributed by the Royal Canadian Mint, the coins are considered one of the most popular gold coin series in all of North America. What is fractional gold like from Canada? Check out the Canadian Gold Maple for the very best of Canadian gold. 

On the obverse of the fractional Canadian Gold Maple, you’ll find Queen Elizabeth II, the former Queen of Great Britain. In future releases of the Canadian Gold Maple, the coin will instead feature Britain’s new monarch, King Charles III. 

The back of the Canadian Gold Maple carries on this list’s tradition of including coins with important cultural symbolism. What is fractional gold from Canada likely to include on its reverse? The maple leaf, of course! The Canadian maple leaf is a core element of Canadian culture and history, and the image is depicted in impressive detail on the fractional Canadian Gold Maple. 

Do Fractional Gold Bars Exist? 

What is fractional gold for gold bars? Gold bars can be fractional as well. Some people tend to think of huge bullion pieces when they consider buying gold bars. While large 1 kilo gold bars certainly exist, one of the most popular ways to invest in gold bullion is the 1 oz gold bar. 

And if there are 1 oz gold bars, then you can bet you’ll find fractional gold bars as well. Just like the name might suggest if you’ve been paying attention, fractional gold bars are just gold bars that weigh less than one ounce. 

It’s more common to see gold bars in non-ounce denominations than you’d see when checking out gold coins. In other words, you can find 1 gram gold bars pretty easily, but 1 gram gold coins aren’t particularly common. We tend to consider gram gold bars to be fractional as well, since they weigh a very small fraction of a traditional 1 oz gold bar. 

Long story short: fractional gold bars do exist. Like gold coins, they’re a pretty great way for investors to expand their gold portfolio without spending thousands of dollars at one time. 

Final Thoughts: What is Fractional Gold? 

So what is fractional gold? And how should fractional gold fit into your investment objectives? As with most things in investing, there’s no clear-cut answer. For some investors, the lower entry price of fractional gold is a great way to start building a stack without breaking the bank. For others, it might be more lucrative to stack using full 1 oz gold coins from around the world. 

Whatever your investment objectives, Hero Bullion is here to help. We offer a wide range of fractional gold coins from some of the world’s most popular mints. 

If you still have questions about, “what is fractional gold,” our customer support team is happy to help! 

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