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<p>[QUOTE="ddddd, post: 2781555, member: 22377"]It is true that gold doesn't always go up. This actually makes the case for fractionals more compelling. For example, with spot falling $50 dollars, your 1 oz coin falls at least $50 dollars; meanwhile, your 1/10 oz coin falls $5 (it's the same per oz fall, but losing $5 is less painful than taking the entire $50 loss at once). Also, falling spot prices tend to mean premiums increase. If you notice how most big dealers operate, their sell prices rarely fall by the entire spot decrease. In fact, I have seen dealers just increase the premium to basically make the coin sell for the same as before the spot fall. </p><p><br /></p><p>Then consider my previous comment of how the 1/10 size is much more affordable for collecting a set. Some of the foreign gold coins have very low mintages. Even with lower spot prices, prior year examples can sell for more than original prices. I have personally sold a few Lunar 1/10 oz gold coins for above my initial cost a few years later when spot had decreased. These coins gained an additional premium due to their low mintages and increased collector base.[/QUOTE]</p><p><br /></p>
[QUOTE="ddddd, post: 2781555, member: 22377"]It is true that gold doesn't always go up. This actually makes the case for fractionals more compelling. For example, with spot falling $50 dollars, your 1 oz coin falls at least $50 dollars; meanwhile, your 1/10 oz coin falls $5 (it's the same per oz fall, but losing $5 is less painful than taking the entire $50 loss at once). Also, falling spot prices tend to mean premiums increase. If you notice how most big dealers operate, their sell prices rarely fall by the entire spot decrease. In fact, I have seen dealers just increase the premium to basically make the coin sell for the same as before the spot fall. Then consider my previous comment of how the 1/10 size is much more affordable for collecting a set. Some of the foreign gold coins have very low mintages. Even with lower spot prices, prior year examples can sell for more than original prices. I have personally sold a few Lunar 1/10 oz gold coins for above my initial cost a few years later when spot had decreased. These coins gained an additional premium due to their low mintages and increased collector base.[/QUOTE]
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