It seems like you're still arguing against what you thought he said, instead of what he's actually saying. He's got a budget of $2000/month for this. Right now, that lets him buy (approximately) one ounce per month. If gold goes above $2000, he won't be able to do that. Instead, he'll buy a half-ounce each month. At that point, he'll be buying less gold, which is the point of dollar-cost averaging -- buy less when it's expensive, buy more when it's cheap. If gold goes above $3000, with half-ounce coins over $1500, he'll slow his buying further, by switching to quarter-ounce coins. If gold goes above $4000, he'll stop buying entirely. Yes, the premiums are higher on fractional weights -- but if you don't have the budget for a full ounce, you can either buy smaller, or not buy at all. And those premiums do apply to some degree in both directions -- that is, you get some of it back when you sell.