Does fractional bullion sell for a premium too?

Discussion in 'Bullion Investing' started by Gam3rBlake, Apr 5, 2021.

  1. Gam3rBlake

    Gam3rBlake Supporter! Supporter

    As we all know when you go to buy bullion the fractional stuff 99% of the time costs more.

    For example: 10x 1/10th oz American Gold Eagles will always cost you more than 1x 1oz American Gold Eagle. Even though they are both 1 oz of gold.

    Here is my question: Do dealers pay more for them too? Will a dealer pay more for 10x 1/10th oz AGEs than 1x 1oz AGE?

    I imagine the smaller stuff is easier to re-sell and they do get more for it but I’ve never tried selling fractional.
    GoldFinger1969 and capthank like this.
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  3. ToughCOINS

    ToughCOINS Dealer Member Moderator

    Yes, small gold brings a higher premium in both directions.
  4. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Yes, you will for sure pay more for fractional gold, basically the "COSTCO" affect is in play here, if you can hold out for one OZ , you will save in the long run, more you buy the more yo save :)
    capthank likes this.
  5. potty dollar 1878

    potty dollar 1878 Well-Known Member

    The lesser it is the more people can afford it,I've seen damaged fractionals go for over ×2 melt.
  6. John Burgess

    John Burgess Well-Known Member

    I like to use silver as my "fractional" and when I get enough of it, then sell and buy 1oz gold with it, to lighten the stacks overall weight and volume. the fractional gold is too expensive in my opinion to bother with, too much overhead, but Stacking silver is stacking silver, and it gets heavy after a while, so when the price is right, then it's time to cash in a chunk and switch over that to a ounce or more of gold and lighten the stack while maintaining the value. it's all basically a savings plan anyways I suppose. only wrong way to do it is losing money by not paying attention to your buy prices when you add, or being in a tight jam and having to sell lower then what you have into it.
    Randy Abercrombie likes this.
  7. TheFinn

    TheFinn Well-Known Member

    Depends on the type. French 20 Francs (0.1867 oz.) and British Sovereigns (0.2354 oz.) sell for less per ounce than a one oz. AGE or GML
    harrync likes this.
  8. FryDaddyJr

    FryDaddyJr Junior Member

    what's the purity?
  9. Collecting Nut

    Collecting Nut Borderline Hoarder

    Of course it does and the smaller the amount is the higher it will cost you per ounce.
  10. medoraman

    medoraman Supporter! Supporter

    Someone brought up a good point of world gold. World coins, even though smaller than an ounce, are not really fractional. When we talk fractional, we talk about modern issues like 1/10th ounces, quarter ounce, etc. Old world gold is another animal with different supply/demand.

    Fractionals will always be more expensive since die prep, flan prep, etc is essentially the same for a tenth ounce as a one ounce coin. Therefore, its more expensive to make per ounce, and if purchasers do not pay it the mints will not make them.

    I know we all have different economic circumstances, but if you are stacking pm long term you are probably wisest to save up until you can get a full ounce. Do I? Heck no. However, I have a couple of dealers who sell me this stuff all at melt. Therefore, all of my 1/20th, 1/10th, etc I paid melt for because I take them off his hands for cash quickly. Apmex cannot do this. So, unless you have an arrangement like me, save up to buy the cheapest per ounce.
  11. Blasty

    Blasty I love gooooold!

    .9000 for the 20 Franc (and other coins of the Latin Monetary Union) and .9167 (22K) for the Soveriegn.

    I like them for the lower premiums, history, and design. In times of great supply and low demand, my local shop has occasionally sold fractional Eagles, Krugerrands, Maples, etc. at the full ounce premium. Not these days, no sir! I won't touch them for what is being asked now.
    harrync and FryDaddyJr like this.
  12. FryDaddyJr

    FryDaddyJr Junior Member

    I can get old 20 dollar libertys cheaper than I can get new AGEs at my LCS
  13. ToughCOINS

    ToughCOINS Dealer Member Moderator

    Most everyone should be able to do the same if the $20 Lib is nothing special . . . like a VF common date coin. There's significantly less gold in the $20 Lib than there is in the AGE.
  14. medoraman

    medoraman Supporter! Supporter

    Yes, there is less. I am not sure 3.25% is terribly "significant", but it is less.
  15. ToughCOINS

    ToughCOINS Dealer Member Moderator

    One should be able to buy a few ounces of 90% with the difference.
  16. Gam3rBlake

    Gam3rBlake Supporter! Supporter

    I'm talking about selling though.
  17. Gam3rBlake

    Gam3rBlake Supporter! Supporter

    But I'm not talking about buying.

    I am asking if I sell fractional to a dealer do they pay more for it like they charge more for it?
  18. Gam3rBlake

    Gam3rBlake Supporter! Supporter

    I'm not talking about buying though. I'm talking about selling.

    I was asking if I sold a dealer fractional will he pay more than larger amounts?

    If I take 10x 1/10th oz AGEs will I get paid more than if I took in 1x 1oz AGE?
    slackaction1 likes this.
  19. medoraman

    medoraman Supporter! Supporter

    It depends. Like I said, I have lots of 1/10th and 1/20th ouncers I have bought at melt. Therefore that dealer paid less. If you do your due diligence there probably will be dealers who pay more than melt for these, but not all will. Same with selling anything, do your homework.
    harrync likes this.
  20. Collecting Nut

    Collecting Nut Borderline Hoarder

    No they don't
  21. Mr.Q

    Mr.Q Well-Known Member

    Absolutely not, they have to make a profit. Be safe not sorry Gam3.
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