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Gold Trends: Fractional Coins (part 2)

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December 7, 2012 in Economics

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An Addendum

This information is what I have gathered over this past year and is a response to a comment on a previous article that I posted, and this information is for the poor -like me- who has very little with which to invest, to prepare (prepping), to defend against inflation.

First, I would like to warn potential investors in this concerning the size of FRACTIONAL COINS. Believe it or not, they are small. The pictures you may see of them blown up on the internet do not do them any justice. They are typically smaller than a dime. This makes them potentially easier to lose but also easier to hide. Luckily they cost much less than their larger counterparts, so the loss will not be as devastating my comparison. (But they all cost a lot to me.) DON’T LOSE THEM once you get them -is what I am trying to communicate here.

Important information: SPOT PRICE is the price of gold per ounce. Currently it is at some ungodly high value. The benefit of the fractional coin is that I can afford it in this day and age. (If I were smarter in my youth, then I could have had plenty of gold stored up from the 1990s.)

Also important information: ASKING PRICE (may not be the official name for it) is the price of the coin / bullion after the dealer has marked it up. The benefit of buying gold at the ounce is that the dealer typically does not mark it up too high. The difficulty with fractional coins is that the dealers usually mark them up -usually the smaller the coin, the higher the mark up- however, these mark ups are still within my super tight budget so long as I budget one once a month or so. Planning your budget farther in advance is only ever helpful; and if you budget for yourself a type of slush fund and set it aside, then you can monitor the prices at your leisure and buy when the price drops within your allowance’s range.

In order to ascertain the mark up of your potential coin dealer, you will need to apply some arithmetic. Multiply the spot price by the size of the coin in which you are interested and subtract this product from the asking price. The smaller the mark up, the closer the asking price will be to the spot price. (ASKING PRICE) – (SPOT PRICE x SIZE OF THE COIN) = MARK UP. *Do the multiplication within the second set of parenthesis first.*

The coins that I am listing below are some of the more commonly found fractional coins in my limited experiences that are closer to the sizes that I am able to obtain; however, that does not mean that I have any of them. It only means that they are smaller and cheaper (not considering the mark up) when compared with the larger coins. I will do my best with this list. Again, watch out with some of these, because they really do mark some of these up -more than 50% sometimes.

  • Austria, 4 Florin, 0.0933 oz
  • Austria, Ducat, 0.1106 oz
  • Canada, $0.50 “Bluenose,” 0.04 0z (1/25 oz)
  • Denmark, 10 Kroner, 0.1177 oz
  • France, 10 Franc, 0.933 oz
  • *Gibraltar, “Gold Dog Coins,” 0.04oz (1/25 oz), 0.2 oz (1/5 oz)
  • *Gibraltar, “Royal Gold Cherubs,” 0.5 oz (1/2 oz), 0.04 oz (1/25 oz)
  • *Gibraltar, “Gold Royal Colliding Cherubs,” 0.1 oz (1/10 oz)
  • Gibraltar, 50 Pounds, 0.1 oz (1/10 oz)
  • Great Britan, 1/2 Sovereign, 0.1177 oz
  • Hungary, 10 Korona, 0.098 oz
  • *Isle of Man, “Gold Cat Coins,” 0.1 (1/10 oz), 0.04 oz (1/25 oz)
  • *Isle of Man, “Golden Angels,” 0.10 (1/10 oz), 0.05 oz (1/20 oz)
  • Israel, “Biblical Art” series, 0.04 oz (1/25 oz)
  • Italy, 20 Lire, 0.1867 oz
  • **Liberia, 25 Liberian Dollars “St Paul,” & “St. John,”  0.04 oz (1/25 oz)
  • Liberia, “Apostle Thaler,” 0.02 oz (1/50 oz)
  • Liberia, 12 Liberian Dollars “Capella Sistina,” 0.02 oz (1/50 oz)
  • Netherlands, 1 Ducat, 0.1106 oz
  • Peru, 1/2 Libra, 0.1177
  • Prussia, 10 Mark, 0.1152 0z
  • Somalia, 50 Shillings, 0.04 oz (1/25 oz)
  • Somalia, 20 Shillings, 0.02 oz (1/50 oz)
  • South Africa, 1 Rand, 0.1177 oz
  • South Africa, 1/10 Krugerrand, 0.1 oz (1/10 oz)
  • Switzerland, 1/10 Unze, 0.1 oz
  • ***U.S.A., “St Gaudens”, 0.02 oz (1/50 oz)
  • U.S.A., One Dollar “Types 1, 2, and 3,” 0.048375 oz
  1. *I do not know WTF is going on with Gibraltar and the Isle of Man and their coin makers, but they seem to have this thing for animals and fairies and angels; yet the coins are small.
  2. **The Liberian “St Paul” and “St John” coins are the same size.
  3. ***I am unsure if the 1/50 oz St Gaudens is a replica or not. (Also, I have found that U.S. and Chinese gold to be more expensive than that of other countries, usually.)

Here are some web sites to search: APMEX, Macrotrends, Silber-Werte. I am not promoting either of these sites. I would prefer to encourage these as sources with which to compare the mathematical formula with the many asking prices that exist. If I may suggest to my economically stressed fellows, LOOK FOR THE COIN THAT IS BOTH WITHIN YOUR PRICE RANGE AND AS CLOSE TO THE SPOT PRICE AS IS WITHIN YOUR ACCEPTABLE LIMITS OF COMFORT.

 

Harken, evildoers: don’t tread on me.


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4 responses to Gold Trends: Fractional Coins (part 2)

  1. f0st3r21,
    If folks like us are too poor to afford gold as in an ounce for once basis. Why not advocate silver instead ? It is much more affordable and will have better and more liquidity in a post apocalyptic economic world. There is a reason why it is called “the poor mans gold”. Silver to gold ratio
    Silver outperforms as gold also hits a 2012 high

    “The bullion banks which are short in the silver market are potentially in serious trouble, unless somewhere there is a pot of physical silver they can dip into. There isn’t………”

    “Supply constraints add to push for $5,000 gold and $200 silver within four years”

    GOLD vs. SILVER

    Alas, poor silver is the Rodney Dangerfield of precious metals – it can’t get no respect. It certainly should merit respect, since its 20th century performance has far outpaced gold. It’s volatility and superior fundamentals ought to make it much more attractive than gold.

    “The fact is, gold bugs (with their blind, monomaniacal devotion to gold) miss the point. They are so ideologically wedded to the yellow metal that they overlook both history and facts. It is not a monometallic gold standard that history overwhelmingly demonstrates, but bimetallism. Shortly after I wrote Silver Bonanza for Jim Blanchard in 1993 but before it had been published, Jim teased this gem out of Nobel Laureate economist Milton Friedman: “The major monetary metal in history is silver, not gold.” (I remember it well because the statement struck Jim so strongly that he had it printed up on a sticker and inserted it on the flyleaf of the original 8-1/2 by 11 version.) Friedman was right, of course. For most of mankind throughout most of history, silver has been the much more important monetary metal, familiar as the metal of daily commerce. Gold was used only for very, very large payments, which most people make only rarely, if ever.”

    • I like silver -especially the cull (worn) kind. It is indeed cheaper and can be found in greater abundance for guys like me. However, the reason I also look at gold is because of that reason: volume. Suppose something goes down and you have to grab your “go bag” and get out of Dodge; would you prefer to carry a few pounds of silver or an ounce of gold? Also if you purchase a bunch of reasonably priced foreign coins, there is no law against merging foreign coins within the U.S. (http://planet.infowars.com/resistance/this-is-illegal) whereas the U.S. has laws against melting our currency within our borders. That was my thought process: gold is easier to conceal and carry when it is time to flee.

      • I agree in part f0st3r21. But suffice it to say maybe in a post apocalyptic economic world, neither gold or silver will be tradable, accepted or usable whereas you refer to bugging out, i.e. fleeing. I’m thinking if things get that bad, only weapons, food, and other low tech survival gear will be of any value. So I look at this investing as something a person would do to get bullish before a total collapse and with any luck have the foresight to somewhat see ahead in order to minimize any losses. Fortunately for amateur speculators like myself, incrementalism is the tool of choice for the powers that be.

        Currently the upswing for silver is the fact that it is traded on approximately a 53:1 ratio and it’s availability is only at a 7:1 ratio to gold. This results in what can only be a deficit and results in a higher demand and thus price for silver in the future. It is clear that demand is outstripping supply with silver. But the downswing is the fear from the past era in the manipulation of the silver market, and that it could happen again.

        Please watch this new vid. Eric Sprott: Silver to Outshine Gold as the Investment of this Decade!

        • Agreed, but I intend to acquire an ounce of gold -bit by bit- nonetheless. It’s kind of a personal goal of mine (also a reloading kit for ammunition).

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