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Small Gold Coins

When it comes to investing in gold bullion, coins can provide a cost-efficient and convenient way to build a portfolio. Investors have many different products to choose from these days, and gold coins come in numerous weights, purities and designs. Although the 1 ounce gold coin is very popular, smaller gold coins-sometimes referred to as fractionals-have been gaining in popularity. Small gold coins may potentially make gold bullion ownership relatively more affordable for smaller investors and those on a tight budget.

Small gold coins can also be great for collectors. With coins as small as 1/25th of an ounce, collectors may be able to deploy their investment capital across a broader range of products.

Small gold coins are easily purchased and transported, and can be stored in a home safe, a bank safe deposit box or the depository of your choice. Because some gold coins contain 999.9 percent fine gold, certain gold coins may potentially be eligible for purchase in an IRA account. Of course, you should consult your tax professional for eligibility and guidelines before making any purchases for an IRA.

Today there are numerous small gold coin weights to choose from. These include:

• 1/25th ounce

• 1/20th ounce

• 1/10th ounce

• ¼ ounce

• ½ ounce

Certain gold coin products, like Chinese Gold Panda coins, come in varying weights denominated in grams such as 1 gram, 3 gram, 8 gram and 15 gram.

Many of the most popular 1 ounce gold coins are now also available in smaller sizes. Although designs may be the same, smaller weight gold coins will usually carry a smaller face value as well and are still considered good, legal tender. Some of the most popular gold coins available in smaller weights include:

• American Gold Eagles

• Canadian Gold Maple Leafs

• American Gold Buffalo coins

• Australian Gold Kangaroo coins

• Mexican Gold Libertad coins

• Chinese Gold Panda coins

• Austrian Gold Philharmonic coins

• South African Krugerrand coins

With the large amount of small gold coins available today, investors and collectors have many different options for diversifying their portfolios or collections. Just because small gold coins have lighter weights and less total gold does not mean that they don’t pack a punch when it comes to value. Smaller weight gold coins are still produced by many of the most highly respected mints anywhere on the globe. The U.S. MInt, Royal Canadian Mint and Austrian Mint all produce many different small gold coins.

The only possible drawback to small gold coins is that they may carry a higher premium than their larger counterparts. The production costs (aside from the gold content) of a 1/25th ounce gold coin versus a 1 ounce gold coin are very similar. Therefore, the larger weight coin may potentially offer a per-ounce cost savings compared to smaller coins.

Small gold coins, like larger gold coins, are available in both bullion and proof versions. Proof coins, however, tend to carry significantly larger premiums as these coins have been thoroughly inspected by a grading service for authenticity, purity and condition.

Small gold coins may be relatively more affordable, however, allowing more investors and collectors to take advantage of the potential benefits that come with physical gold ownership.