After answering a great Gold Why Question about
22 Karat Vs. 24 Karat Gold
last week, I'm thrilled to answer another great question today! Today's question is really important to me because
I'm a huge fan of Fractional Gold Coins. I have tons
of pictures and articles here on Gold Why about fractional gold coins. Now, there's a new class of fractional gold
coins, mini gold coins that are produced by non-government mints. Today let's talk about miniature gold coins!
©iStockphoto.com – dimdimich
Question: I took your advice on buying gold bars on eBay.
I have bought several through them and am very satisfied with the quality and service. I have a question for you. Do you have an opinion on the
"mini gold coins" that are sold everywhere? If you are familiar with them, are they worth having? I am sorry but I have not been able
to find anything on this subject on your site.
Answer: Thank you so very much for asking this question. It's an important topic, one that I feel strongly
about! Also, no need to feel sorry at all. After writing over 160 articles here on Gold Why, I'm sometimes unsure what to
write about next. It's these awesome Gold Why Questions that keep me going, so thanks so much. Long story short, I would
recommend being really careful with mini gold coins and think they can have a place in your portfolio, but a "mini" one.
Today, I'll discuss why!
Mini Gold Coins (Vs. Government Mint Fractional Gold Coins) - What's the Difference?
Before we get into by thoughts around miniature gold coins, let's first get through a few high level definitions. What are
mini gold coins? For the purposes of this article, they are really small gold bullion coins, mostly produced by non-government mints.
I'm talking about coins smaller than even your smallest government-minted coins. I'm talking about coins that are 1 gram and smaller
(such as 5 grain and 1 grain coins). I have purchased a few of these mini gold coins myself on eBay. A lot of people sell such mini gold
coins on eBay and they can be a fun collectible.
Now, let's compare these mini gold coins to fractional gold coins produced by government mints. Fractional government-minted coins are typically
1/2 ounce (such as my Half Ounce Krugerrand), 1/4 ounce
(such as my Quarter Ounce Maple Leaf), 1/10 ounce
(such as my Tenth Ounce American Eagle), and 1/20 ounce
(such as my Twentieth Ounce Maple Leaf). Sometimes, you will even see
1/25 ounce gold coins (such as my Gibraltar Dog Gold Coin). While these
coins are small, they are minted by governments and are not quite "mini" as 5 grain and 1 grain mini gold coins. To the best of my knowledge
the major government mints such as the US Mint, Canadian Mint, South African Mint, and others do not produce mini coins smaller than 1/20 and sometimes
My Personal Opinion on Miniature Gold Bullion Coins
So now that our definitions out of the way, what's my opinion on the topic? I bet it already came across in my writing, at least a little.
I'm the biggest fan of government-minted fractional gold coins around. However, we'll get to that in a minute. When it comes to mini
gold coins for investment purposes, I recommend being careful. They're fun and can make great collectibles. I personally own mini gold
coins. There's nothing wrong with them. If there ever is a disaster, maybe they'll even come in handy. The price of gold is skyrocketing and
miniature gold coins provide a cheaper alternative to even the smallest government-backed fractional gold coins. However, here's the problem:
Because they're made by third party, independent mints, it's hard to verify their gold content. Also, there does not exist a liquid market for mini
gold coins. Bring some mini gold coins to your local coin shop and they may not even want to purchase them from you. Here's my personal strategy:
I love owning all different types of gold coins. I buy exotic gold bullion coins (such as mini gold coins) and even venture into other exotic
investments such as copper bullion. I buy this stuff because I love it. I often write about
such topics here on Gold Why because they're off the beaten path and aren't covered much on the Internet. They are fun collectibles that have value.
However, I make sure to limit them to no more than 5 percent of my metals portfolio. I don't want to go overboard in something that's potentially
My other opinion on the topic: If you do end up buying miniature gold coins, do your research. Buy from the most reputable mint you can find.
You need to Be Careful Buying Gold Online. When you're dealing with
an unknown like mini gold coins, there may be more margin for error. That said, if you're careful to deal with the best of the best, you should be
Alternatives To Mini Gold Bullion Coins
Now that you have my opinion on mini gold coins, I'd like to share two amazing alternatives. First and foremost, don't let deter you, mini gold coins
are awesome. However, let's say you have filled up 5 percent of your metals portfolio with such coins, now what? I personally can't say enough great
things about the fractional government-minted gold coins mentioned earlier in this article. I'm talking about 1/2 ounce, 1/4 ounce, 1/10 ounce, 1/20 ounce,
and 1/25 ounce gold coins. Sure, these will be more expensive than mini gold coins because they contain more gold bullion content, but the extra price
is well worth it. With these coins, you own a liquid asset that is well recognized around the world as having a ton of value.
Let's say that even the smallest 1/20 and 1/25 gold coins are out of your range. Let's say you don't want to wait. Here's another amazing alternative:
silver bullion coins. I can't get enough of the Silver American Eagle as just
one example. I hope this helps answer your question and thanks so much! Please keep the great questions coming.
Buy Gold Coins on eBay
Related Gold Articles
Half Ounce Krugerrand
Tenth Ounce Gold Eagle
Fractional Gold Bullion Coins
Quarter Ounce Gold Maple Leaf
American Eagle 1 Oz Silver Coin
Tenth Ounce Chinese Gold Panda
Why Buy Gibraltar Dog Gold Coins?
Why Buy Isle of Man Cat Gold Coins?
Why Be Careful Buying Coins Online?
Why Buy 1/20 Ounce Gold Bullion Coins?