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BullionStar explained the merits of fractional gold coins

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Below is an article from BullionStar, a bullion dealer based in Singapore which exempted investment grade precious metals from the goods and services tax (GST). Just like BullionStar, one of the the goals of SG Wealth Builder is to educate Singaporeans on the merits of owning gold and silver bullion as a means of wealth preservation. 

Often, customers come into our shops and ask for the gold coin with the lowest premium. In this case, our answer is always the Royal Canadian Mint 1 oz Gold Maple Leaf. The Gold Maple Leaf offers not just the best value for money, but you also buy into a brand that is globally recognized for high manufacturing quality.

Why then, do we offer fractional coins in the form of fractional gold maples, kangaroos, pandas and lunar series and why do people purchase them even though the premiums are higher? Today’s editorial will discuss the different reasons people who buy gold buy fractionals.

Liquidity

Fractional coins offers the advantage of liquidity. Should one need a sum of money, one can sell a ¼ oz coin for example instead of selling an entire ounce. Now this is especially useful when the price where one bought the coin at is higher than current prices when you are deciding whether or not to sell.

singapore_gold_bullionstar_front_100g_2Allow savers to start

Though fractionals have higher premiums they also cost lesser in absolute terms than their 1 oz counterparts. They allow people who do not have the discipline to save money in precious metals to put aside whatever small amounts they have into gold so that they can build up their stacks. It might seem like a 1/10 oz is nothing but over time, all these add up and one would be glad that they put aside the money!

Variety for collectors

Collectors seek variety and fractionals are the perfect way to get variety! Instead of buying a 1 oz gold Maple Leaf, a collector can buy 4 x ¼ oz coins to give him 4 different coin designs! One can get a ¼ Gold Maple Leaf, ¼ Gold Kangaroo Nugget, ¼ Chinese Gold Panda and ¼ Lunar Gold Goat!

One can consider fractionals for the above reasons in the future when one is looking to buy gold!

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Updated: August 3, 2015 — 2:07 pm

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