'Fractionals’ make bullion coin investing more affordable

Nov 24, 2020

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Bullion coins made from 1oz of gold make sense for many investors. But there are denominations made from less than 1oz.

These coins are known as ‘fractionals’ - and they provide investors with a number of practical benefits.

Because they contain smaller amounts of precious metal, fractional coins are sold at lower price points. For those on a tight budget, they make accumulating gold bullion possible for a more modest outlay.

Some people invest in gold to protect themselves against the worse-case scenario - a total collapse in the financial system. This type of investor probably believes fractionals would be useful for barter if paper currency suddenly became worthless.

Disaster scenarios aside, the other main benefit offered by fractionals is flexibility when it comes to converting precious metal back in to cash. For example, a portfolio containing exclusively 1oz gold coins means that a minimum of 1oz must be sold – currently worth more than AUD 2,500.

Sellers who want to redeem smaller amounts of gold could have achieved a more suitable outcome had they diversified through a range of fractional coins.

Australian fractional coins

Gold and silver bullion coins and bars in a range of sizes

Fractional bullion coins made by The Perth Mint from 99.99% pure gold feature exactly the same design theme as the full 1oz sizes and each is issued as Australian legal tender.

Each fractional coin receives the same meticulous attention to detail in order to produce an exquisitely detailed product.

The internationally sought-after Australian Kangaroo and Australian Lunar III Gold Coin Series are struck in fractional weights of 1/2oz, 1/4oz and 1/10oz. Also available in these sizes, the Lunar Series includes a more unusual 1/20oz option.

Australian Kookaburra 2020 1/10oz Gold Bullion CoinOur latest fractional offering is the 2021 Australian Kookaburra 1/10oz Gold Bullion Coin, only the second of its kind struck at The Perth Mint.

With the 2020 coin officially selling out, this release featuring a superb new design is set to be equally popular among stackers.

Learn more.