Best gold fraction to buy

Discussion in 'Bullion Investing' started by danisanub, Aug 11, 2009.

  1. danisanub

    danisanub Finance Major

    Well I want to purchase some gold, and my price range is a max of 280. This leaves me with several choices:

    1 gram gold
    2.5 gram gold
    5 gram gold
    1/20 oz gold
    1/10 oz gold
    1/4 oz gold

    It seems to me that the 1/4 oz carries the least premium, but my thoughts are that since the lower denominations have a higher premium, if the price of gold goes up significantly, won't the premium still be as high? So in a sense, the spot price won't matter too much if I bought at the average price (which is usually several dollars higher than spot), because in a spike in price of gold, the premium will still be above and I'll still make money.

    Make any sense? So my questions are, should I just buy a 1/4, and if not, what denomination? And if I purchase lower denominations, am I right in the presumption of the premium always being a standard amount of dollars above spot?

    Thoughts/opinions wanted!
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  3. fretboard

    fretboard Defender of Old Coinage!

    With $280 I would go for a 1/4 oz, only b/c it's easier to take care of and the 1/4 oz coins are beauties. A 1/4 oz Mexican is one of the first coins I bought, I like it alot b/c it has an incused edge. If you like Mexican gold you can go with the smaller amounts as well. I paid $262 for the Mexico 1981 and $258 for the Statue of Liberty coin also one of my favorites. Actually you can get the liberty for less, like $230- $255, raw price of course. In fact you can get both for less than I paid. I paid $20 over spot on the Mexico and I got the Liberty off of the bay. Here's mine, sellers pic and an example. :)
    good luck with your purchase

    Attached Files:

  4. CentDime

    CentDime Coin Hoarder

    Everybody is buying gold right now so the supply is way down. The best modern mintage coins close to spot right now are the 2008 w Uncirculated gold eagles with the W mintmark.

    1/4 size mintage 9200
    1/10 size mintage 13,400

    With a low mintage coin the premiums hold for longer than with high mintage.
  5. danisanub

    danisanub Finance Major

    Beautiful coins fret, you've convinced me for a 1/4!

    I'll keep that in mind centdime, I'll scan the bay until I see a good deal, and maybe I'll get lucky
  6. elaine 1970

    elaine 1970 material girl

    2008w 1/4 oz american eagle unc $10.00 gold is the lowest mintage at 9,200. this should be over $2,000.00 in the future.
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