Why do you recommend older foreign gold fractional coins rather than modern-issued gold fractionals or US American Eagle fractional coins?
A. Modern gold coins such as U.S. American Eagles, Canadian Maple Leafs, Austrian Philharmonics, and Australian Nuggets all come in fractional sizes of one-half, one-quarter, and one-tenth of an ounce. As these coins get smaller, the market premium increases, and for the smallest coins, this premium can approach 15%. Paying the higher premium for these fractional coins doesn’t make economic sense. There are many small coins that were issued historically and still trade easily in the U.S. market. These coins usually demand a lower premium, and the cost per ounce is lower than modern fractional coins. What you give up, however, is ease of calculating how much gold you own. For instance, British Sovereigns contain 0.2354 troy ounce fine gold – just under a quarter ounce, German 20 Mark coins contain about the same amount, at 0.2304 troy ounce, French and Swiss 20 Franc coins contain 0.1867 troy ounce, and Netherlands 10 Guilders contain 0.1947 troy ounce fine gold. The better cost per oun
