A 1/20 of an ounce gold coin or bar is a small and highly affordable way to invest in gold. These coins or bars weigh 1.555 grams (1/20th of the 31.1 grams in a full troy ounce) and are popular among beginners or those looking for fractional gold pieces to diversify their portfolio.
Features of 1/20 Ounce Gold Coins and Bars
- Weight: 1.555 grams
- Purity: Typically .999 or .9999 fine gold, depending on the mint or manufacturer.
- Dimensions: Small and easy to store, with sizes varying by product.
- Design: Often feature the same iconic designs as their larger counterparts, such as the Canadian Maple Leaf, American Eagle, or Krugerrand.
Benefits of 1/20 Ounce Gold
- Affordable Entry Point: A great option for those new to investing in gold or with limited budgets.
- Liquidity: Easy to sell due to their lower price and widespread recognition.
- Portability: Extremely lightweight, making them easy to carry or store.
- Gifting Potential: Their size and cost make them ideal as gifts for special occasions.
Popular 1/20 Ounce Gold Coins
- Canadian Gold Maple Leaf: Produced by the Royal Canadian Mint, this coin has a purity of .9999 fine gold.
- South African Krugerrand: A classic fractional gold coin, recognized worldwide.
- Chinese Gold Panda: Known for its yearly changing designs and .999 purity.
- Australian Kangaroo/Nugget: Issued by the Perth Mint, featuring a unique kangaroo design.
- American Gold Eagle: A classic U.S. coin, though fractional Eagles may have slightly lower purity (.9167).
Is 1/20 Ounce Gold Worth Buying?
Yes, 1/20 ounce gold pieces are a smart choice for investors who:
- Want to own gold at a lower cost.
- Prefer to build their gold holdings gradually.
- Value flexibility in trading smaller units.
However, it’s essential to note that smaller gold pieces often come with higher premiums per ounce compared to larger ones due to manufacturing costs. As such, while they’re excellent for diversification and accessibility, they may not provide the best value for bulk gold investment.
Current Price of 1/20 Ounce Gold
To calculate the price of a 1/20 ounce gold piece, divide the current gold spot price (per ounce) by 20 and add the dealer’s premium. For example:
- If gold is priced at $2,000 per ounce, 1/20 of an ounce would be $100 before adding the premium.
Who Should Consider Buying 1/20 Ounce Gold?
1/20 ounce gold coins or bars are ideal for specific types of investors and collectors. Here’s a breakdown of who can benefit most from adding these small gold pieces to their portfolio:
Beginner Investors
If you’re new to precious metals investing, starting with a 1/20 ounce gold coin is an excellent way to test the waters. These pieces allow you to gain exposure to gold without committing a large amount of capital upfront. It’s a low-risk way to diversify your investment portfolio.
Budget-Conscious Buyers
Gold’s price per ounce can be intimidating for many, especially during periods of high market volatility. Smaller denominations, like 1/20 ounce coins, make it easier to purchase gold incrementally while avoiding the financial strain of buying larger quantities.
Collectors
Collectors value 1/20 ounce coins for their unique designs and portability. Limited-edition coins, such as the Chinese Panda or Australian Kangaroo, are highly collectible and make great additions to a diversified numismatic collection.
Gifting and Celebratory Occasions
A 1/20 ounce gold coin makes for a thoughtful and valuable gift. Whether for weddings, anniversaries, graduations, or birthdays, gold coins symbolize prosperity and good fortune. Their small size and affordability make them perfect for gifting.
Investors Focused on Liquidity
Small gold pieces, like the 1/20 ounce coin, are highly liquid. They’re easier to sell than larger gold bars or coins since they’re more affordable for individual buyers in the secondary market. In times of financial need, fractional gold can be sold in small amounts, providing greater flexibility.
Factors to Consider Before Buying 1/20 Ounce Gold
While 1/20 ounce gold has its advantages, it’s essential to weigh a few factors to make an informed decision:
Premiums
Smaller gold coins and bars typically come with higher premiums relative to their gold content. This is due to the manufacturing and distribution costs, which are similar for both small and large coins but are spread over less gold in smaller coins. For example, the premium on a 1/20 ounce coin could be 20-30% of the spot price, while it might only be 5-10% for a full ounce.
Storage Costs
While the coins themselves are small and don’t take up much space, storing several small gold pieces in a safe or a bank’s safety deposit box can add up in terms of costs. If you plan to accumulate a large collection of fractional gold, ensure you factor in the storage costs.
Resale Value
Although 1/20 ounce coins are highly liquid, their higher premiums may reduce your potential profit margins when selling. Buyers typically prioritize gold content, and smaller coins may fetch slightly lower resale prices compared to larger denominations.
Purpose of Purchase
Ask yourself why you’re buying gold:
- If it’s for investment purposes, larger denominations like 1/10 ounce or 1 ounce may offer better value.
- If it’s for gifting, liquidity, or diversification, 1/20 ounce gold coins are a perfect fit.
Best Places to Buy 1/20 Ounce Gold
To ensure you’re buying genuine, high-quality gold, it’s crucial to purchase from reputable dealers. Here are some of the best options:
Online Bullion Dealers
- JM Bullion: Known for its competitive pricing and a wide range of fractional gold coins.
- APMEX: Offers a vast inventory of 1/20 ounce coins from various mints around the world.
- SD Bullion: Popular among investors for low premiums and secure shipping.
- Provident Metals: A reliable option for purchasing fractional gold, with excellent customer service.
Local Coin Shops
Local coin dealers are a great option for buyers who prefer to see the coin in person before making a purchase. They often stock fractional gold coins and can provide valuable insights into the local gold market.
Official Mints
Some government mints, like the Royal Canadian Mint and Perth Mint, sell directly to consumers. Purchasing directly from the mint ensures authenticity and may come with certificates of authenticity.
Gold Expos and Trade Shows
Gold and precious metal expos are excellent places to find fractional gold coins. These events bring together multiple dealers, giving you a chance to compare prices and find rare designs.
How to Store and Protect 1/20 Ounce Gold
Small gold coins and bars require careful storage to maintain their value and protect them from damage. Here are some tips for safe storage:
Use Protective Cases
Store your 1/20 ounce coins in capsules or coin flips designed for their specific size. This prevents scratches, fingerprints, and other damage that could lower their resale value.
Invest in a Home Safe
For small collections, a high-quality home safe provides easy access while keeping your gold secure. Choose a fireproof and waterproof safe for added protection.
Consider a Bank’s Safety Deposit Box
If your collection grows over time, a safety deposit box offers professional security for your gold. While this involves an annual fee, it’s a reliable option for safeguarding high-value items.
Avoid Handling the Coins
Handle gold coins with gloves to prevent oils from your skin from tarnishing the surface. Minimize direct contact as much as possible.
Comparing 1/20 Ounce Gold to Other Fractional Gold Options
When deciding on fractional gold, it’s worth comparing 1/20 ounce coins to other popular sizes:
1/10 Ounce Gold
- Larger than 1/20 ounce, offering better value with lower premiums per ounce.
- More widely recognized and available, making them a popular choice for investors.
1/4 Ounce Gold
- Ideal for those who want to invest more in gold without committing to a full ounce.
- Typically features slightly lower premiums than smaller fractional coins.
Grams vs. Troy Ounces
- Some gold products are sold in gram denominations (e.g., 1 gram, 5 grams).
- 1/20 ounce coins weigh slightly more than 1.5 grams, making them comparable to small gram bars but often more recognizable.
Frequently Asked Questions About 1/20 Ounce Gold
1. Are 1/20 ounce gold coins a good investment?
Yes, they are an excellent option for investors looking for affordable, highly liquid gold pieces. However, be aware of higher premiums compared to larger denominations.
2. What is the purity of 1/20 ounce gold coins?
Most 1/20 ounce coins are minted with a purity of .999 or .9999 fine gold, depending on the mint.
3. How much does a 1/20 ounce gold coin cost?
The cost is based on the current spot price of gold divided by 20, plus a premium. For example, if gold is $2,000 per ounce, a 1/20 ounce coin would cost around $100 plus premium fees.
4. Are 1/20 ounce gold coins easy to sell?
Yes, they are highly liquid due to their affordability and recognizability, making them easy to sell to both individual buyers and dealers.
5. Do 1/20 ounce gold coins have collectible value?
Some coins, like the Chinese Panda or Australian Kangaroo, have collectible value due to their unique designs or limited mintages.
Final Thoughts
1/20 ounce gold coins and bars are an excellent way to start your gold investment journey or add flexibility to an existing portfolio. While they may come with slightly higher premiums, their affordability, liquidity, and portability make them a valuable asset. Whether you’re an investor, collector, or someone looking for a meaningful gift, 1/20 ounce gold offers a unique and versatile option for owning precious metals.
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