Fractional gold coins are coins that contain less than one Troy ounce of gold.
Most of the coins listed above can also be purchased in,, or 1/10 troy ounce increments. Similarly to the 1 oz. coins, the “premium” for fractional coins varies with market conditions and by individual coin (i.e. American Buffalo vs. Australian Kangaroo). Additionally, for the fractional coins, the “premium” does vary with the size of the coin, “the smaller the coin, the larger the premium.” Here, “size” and “smaller” are referring to the gold content of the coin. The total weight of the coin including base metals and shape are irrelevant. For ounce coins the investor should expect to pay a 6.00% to 8.50% “premium”; for ounce coins a 9.00% to 11.00% “premium”; and for 1/10 ounce coins a 12.00% to 16.00% “premium”. These premiums are current as of June 7, 2023, but change due to market conditions.
Many investors prefer these coins since many gold bullion coins are allowed in self-directed IRA’s. To be eligible as IRA investments, gold coins must be at least .995 fine (99.5% pure) and be legal tender coins. This provision makes Canadian Gold Maple Leaf coins, Australian Kangaroo Nuggets and Austrian Philharmonics acceptable precious metals IRA investments. Gold American Eagles (91.67% purity) are an exception to the purity requirement with 91.67% purity, but ARE allowed in the self-directed IRA. Conversely, many gold coins, such as Krugerrands (91.67% pure) and old Double Eagle gold coins (90.00% pure), are not legal investments for precious metals IRAS.