These are scary times. And while we might all want to buy more gold, the price of just a single ounce is becoming very expensive.
For people with tons of money, $1,600-plus may not be a big deal, but for most of us, it is.
So, instead of trying to save up for months for your next gold coin, you might want to consider the alternative, which is to buy fractional gold coins.
Put simply, this means buying less than an ounce of gold at a time.
Fractional gold coins are priced lower, and give you the opportunity to keep buying on a regular basis.
Why not simply wait until you have the full amount for an ounce? Because, as with any investment strategy, it helps to get into a regular buying routine.
For example, you probably put aside a certain amount of money each month into some kind of retirement savings account. You pay what you can, and you do it monthly. That monthly payment becomes part of your regular expenses. You don’t have to think about saving that money each month, because it happens automatically.
Imagine if you didn’t have that money deducted and invested each month. Imagine if it were a discretionary expense, and that you had to decide each month whether to pay into your savings account or not. Chances are, you wouldn’t make that payment. There always seem to be other, more pressing expenses to take care of each month.
It’s the same with buying and owning gold. If you buy only when you have $1,600 or more lying around, you might wait months, or even years before you next buy gold.
And for many of us, $1,600 or more a month spent on gold is a little too much.
But maybe you can afford half of that each month, or a quarter of that.
If that sounds like you, you might want to think about buying fractional gold coins, on a monthly basis.
Most of the major gold bullion coins come in fractional sizes. Here are some examples.
The Canadian Gold Maple Leaf comes in 1/20 oz, 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz denominations.
The American Gold Eagle is available in 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz denominations.
The Krugerrand comes in 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz denominations.
The Vienna Philharmonic is minted in 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz denominations.
In other words, you can buy gold bullion coins starting at just one tenth of the price of a full ounce.
The only thing to keep in mind is that the price of two 1/2 oz coins will be higher than the price of a single, full ounce. There are costs associated with each individual coin. Your dealer will be taking a slice each time. And you’ll be looking at ten times the delivery costs etc.
But even so, and particularly if prices keep rising, getting into the habit of buying gold bullion right now could pay you back big time further down the road.