Fractional Gold Investing: Accessing Gold with Small Capital

Fractional gold refers to gold products <1 troy ounce, enabling investment with lower capital:

Common Forms

• Coins: 1/10, 1/4, 1/2 oz (e.g., Gold Eagle, Maple Leaf, Krugerrand)
• Bars/rounds: 1g, 2.5g, 5g, 10g, 20g (Valcambi, PAMP, Credit Suisse)
• Digital/tokenized: Blockchain-backed (e.g., PAXG, XAUT) – fractional ownership
• ETF shares: GLD, IAU – not physical but fractional exposure

Advantages

• Lower entry point ($100–$300 vs. $2,000+ for 1 oz)
• Liquidity: easier to sell partial holdings
• Dollar-cost averaging feasible
• Portfolio diversification without large allocation

Considerations

• Premiums: Higher % over spot for smaller units (5–15% vs. 2–4% for 1 oz)
• Storage: Home safe vs. depository (cost/insurance)
• Authenticity: Buy from reputable dealers; verify assay cards
• Tax: Collectibles rate (28% LTCG) for physical gold in US

Fractional gold suits incremental accumulation; 1 oz units better for large allocations.