Fractional gold refers to gold pieces that are less than one troy ounce in weight. While a full troy ounce is the standard for many investors, buying smaller amounts of gold is a growing strategy for more diverse portfolios.
What Is A Troy Ounce?
A troy ounce is a medieval measurement system reserved specifically for precious metals. However, it’s becoming increasingly common for metric gold measurements to be used, making it far easier to calculate.
Troy ounces are measured fractions, with the most common weights including ½ ounce, ¼ ounce, 1/10 ounce, 1/20 ounce. Depending on the product, there can be smaller measurements.
Is a Troy Ounce Equal to a Standard Ounce?
No. Troy ounces are based on a pound that once had 12 ounces. The standard pound is made up of 16 avoirdupois ounces (what we use for measuring items like flour and sugar). Troy ounces are therefore heavier than standard ounces.
| Troy Ounce | Standard Ounce | Grams |
| 1 | 1.097 | 31.104 |
| 0.5 | 0.5486 | 15.552 |
| 0.25 | 0.2743 | 7.7759 |
| 0.1 | 0.1097 | 3.1104 |
The difference between a troy ounce (31.1 grams) and a standard ounce (28.35 grams) is crucial in gold trading. Correct weight and price calculations will ensure accurate valuation and fair transactions.
Why Would Someone Invest in Fractional Gold?
There are four main reasons that fractional gold appeals to investors.
1. Affordability
Cost plays the biggest role in fractional gold investment, especially for beginners. Are 1oz gold bars a good investment? Sure! But “gold stacking” with smaller coins and bills doesn’t require tons of savings. People can invest over time with a more flexible budget.
2. Liquidity
During economic uncertainty, liquidity is crucial – and putting fractional gold up for sale may be ideal. If you need to quickly offload part of your investment, smaller amounts of gold are easier to sell without having to liquidate an entire large bar or coin.
What's more, poor economic conditions can render the fractional gold itself as a useful tool of barter, as the smaller denominations are conducive to everyday transactions. In short, gold is always valuable, and fractional gold is more easily traded than bars or other bullion.
3. Storage
Instead of renting a safety deposit box, fractional gold can be kept in safes or even around the home. Use discretion like you would with any investment. Depending on the amount of gold you possess, insurance may be worth considering.
In the event of emergencies, fractional gold is convenient to carry and use. Some fractional gold products are even designed for decoration.
MetalMark gold bills are designed to withstand years of wear and tear. They can safely be kept in your wallet, or even hung on your wall as golden art.
4. Portfolio Diversification
Smaller sums of gold are great for diversifying a precious metals portfolio. Rather than purchasing one large piece, investors can purchase several over time.
Who Produces Fractional Gold?
Fractional gold bars, coins, and certificates are produced by various mints around the world.
Government Mints
Government mints include the US Mint, Royal Canadian Mint, and UK Royal Mint. They are best known for gold bars and coins. Many investors prefer purchasing these items due to high levels of trust and ease of resale. Most government mints however, place a slightly higher premium on their items.
Private Mints
Private mints typically produce fractional gold rounds, bars, and bills. Many have exceptional reputations for producing high-quality items at great prices, but always do your own research before investing.
The exclusive mint that produces MetalMark gold certificates also produces bank notes for international governments. Each of our products is made with 999 pure 24-karat gold, officially licensed art, and contains the same leading anti-counterfeiting measures found in modern currencies.
What's the Value of Fractional Gold?
The basic value of gold products is determined by calculating weight and current market price. Say that the current price of 24k gold is $2,500 per troy ounce. If you purchased a ½ ounce bar, you would expect to pay around $1,250.
Purchasing large amounts of gold often costs less than purchasing fractional gold. After all, minting and distributing smaller amounts results in slightly higher production costs.
There is always a market for that which is valuable, and gold has remained valuable for the entirety of human history.
Is Gold a Long-Term or Short-Term Investment?
Gold is regarded as a long-term investment. Due to its scarcity and use in multiple industries, the precious metal’s value follows a rising trajectory.
Can You Resell Fractional Gold?
Say that you decide to resell fractional gold. If the rates haven’t increased since the date of purchase, you may not recoup your costs. However, there’s a silver lining: Because you’re selling a smaller product, you’ll have an easier time finding a buyer.
Gold value is dependent on demand. If you sell gold during a volatile time, the demand should be higher.
Using standard fire assay methods, you can fully extract the raw gold from MetalMark Bills in a straightforward and cost effective manner.
But regardless of any current economic volatility or short-term market trends, gold has historically proven to be an incredibly dependable safe haven asset, preserving and growing in value over time ahead of inflation.
There is always a market for that which is valuable, and gold has remained valuable for the entirety of human history.
The Most Popular Fractional Gold Products
Coins, rounds, bars, and notes have distinct differences that appeal to investors. Before you invest, do your research to find the right gold product for you.
Though government-minted coins can be a good fractional gold investment, there are a number of exceptional gold products from private mints, too.
1. Gold Coins
Government-minted coins typically guarantee a specific purity level and are often made as collectibles. Some of the world’s top small denomination gold coins include the American Gold Eagle, Canadian Gold Maple Leaf, and Australian Gold Kangaroo.
Coins may have intricate radial lines or guilloche patterns that are finely detailed and challenging for counterfeiters to reproduce. These patterns can also create optical effects when viewed from different angles.
For security, most modern gold coins incorporate features like microscopic engravings (like inscriptions or images), radial lines or guilloche patterns, embedded holograms, and color-shifting ink.
Fractional Gold Coins vs. Rounds
Gold rounds are simply coins produced by private mints, so they aren’t recognized as legal tender. These intrinsically valuable products usually have artistic designs and are meant to be collectibles.
2. Gold Bars
Small gold bars can be purchased from government and private mints. The smallest size is usually 1 gram and they increase by 5-gram increments. They’re ideal for gold stacking and easy to store.
Many fractional gold bars will include elements like tamper-evident packaging, engraved serial numbers, inlaid holograms, and enhanced finishes.
Privately Produced Gold Bars
There are a handful of private producers that have built a reputation with their gold bars, like Credit Suisse and PAMP Suisse.
3. Gold Notes
A relatively new option in the fractional gold space, gold notes are made on highly regulated machines designed to print modern currency for international governments and central banks.
Our exclusive mint holds international patents for atomizing precious metals and depositing on a substrate at nano-scale, creating bank notes using gold instead of paper or textile blends.
These golden bank notes feature the same modern anti-counterfeiting measures you'd find in leading world currencies, which are substantially more advanced than what's possible in fractional bullion alone.
Beyond the Bar: Fractional Gold
Fractional gold is one of the most flexible ways for people to build out their portfolio. While these options may come with slightly higher premiums, their affordability, low barrier to entry, liquidity, and ease of storage make a winning case for investment.
Whether you’re stacking precious metals or investing in a unique piece of art, MetalMark makes it easy to buy gold. Explore our collection of fractional gold products today and start building your diverse portfolio.
