Stacking Fractional Gold is a Winning Strategy
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- čas přidán 8. 09. 2024
- #Silver #Gold #Stacking
In 2008, a channel subscriber purchased 20 tenth-ounce Gold American Eagle coins for $106 each. Since then, he has heard over and over again that buying 1/10th ounce fractional gold was a bad choice. "You'll never recoup the premium." "You're throwing away money." "Just save for a full ounce" We've all heard this before. Well..."They" were wrong.
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6:42 I did some bad quick math. Saving $300 per month cash would take you about 8.5 months to afford a 1 oz Gold American Eagle today.
Only if gold doesn't have a bull run.
@@CuSTACKS Or doesn't have a bear run.
@@CuSTACKSgold can only go one way?
I'm not in the same position as most of you guys. I can't overly concern myself with premiums. If I couldn't get tiny gold, I'd have none. I'm grateful to have a way to stack.
More people are in your situation than you probably think. Tenth and Quarter Oz Gold is a good way to stay in the game without crushing your monthly finances.
Keep at it. Don’t let others try to tell you or compare with what you have going on. Every month I buy 1. 1/10 oz eagle and silver dimes. I only spend $500 a month, it definitely adds up. 🏴☠️
I have over 100 pieces of fractional of all size
Don't forget 2.5 gram bars if your not married to 1/10 coins
@@jacobwhealton492 bars aren’t that common and are more suspicious to be counterfeit in my area.
You must ignore premiums. You always pay a premium on any PM. Fractional gold is affordable and the longer you hold it the more worth it is. So buy what you can afford and sit back and enjoy the wealth you are preserving.
Demand for fractional gold is going to increase if gold prices continue up. I wouldn't try to save up for a one ounce if all I could afford is fractional per month.
Thank you for your wise words. You are one of the most reasonable and non-fanatical content creators in the stacker universe
Thank you! I appreciate that.
I agree with that statement
Fractional gold was part of my stacking plan when i was an active stacker. Although I traded for many Au fractionals, I remember talking myself into buying 1/10th eagles for 100bucks. I'm glad that i did... Thank you for your videos and thoughts.
I'm all for stacking fractional gold. I get 1/10 and 1/4 ounces as I can afford. Even bought some 5 and 10 gram pieces. I now have close to 5 ounces in fractional gold. Very happy and will continue to do so.
I buy 1/10th and 1/20th gold coin a month and it adds up and it's what I can afford. I buy silver weekly
Sure it adds up. sllooow. super slow. how can you afford premiums on 1\20 gold.
I couldn't agree more, FS.
I can personally say that all the fractional Gold that I've purchased over the last several years has increased beyond any premiums I may have paid over that time.
Cheers 🍾 🍻
Spot on. One ounce of gold costs less than ten 1/10th ounces of gold but I’d rather have ten 1/10th ounces than zero ounces. I’ve stacked forty 1/10 ounce coins so far, mostly American Gold Eagles. In 2023 I stacked twenty-two 1/4 oz coins, mostly AGEs but also Liberty Head and Indian Head Half Eagles. Over the years I’ve managed to pick up some 1 oz Gold Buffalos, 1 oz AGEs, a couple of St. Gaudens Double Eagles, a couple of Liberty Head Double Eagles, a 1 oz gold Britannia and some collectable pre-33 in slabs. When I’m looking at my stack, never once have I said, “If I had saved my money I could have one one-ounce coin instead of these eight 1/10th oz coins.”
Lots of great options! I do prefer the 1 oz gold coin when I can, but never hesitate to buy fractional gold!
you should . heistate. i mean h.e.i.s.a.t.a.t.e.
Great vid! Much Thanks.
People forget that the time window through which we view decisions - esp financial ones - really colours the perception of a successful outcome. This is the point you actually make. If you are a short term trader in Au, then fractional premiums will kill you and you should instead trade an ETF or futures contracts. If instead - you hold for 25 yrs or 7 generations - the premium is irrelevant as you have the physical Au.
Time with physical precious metals possession - ALWAYS favours the long term stacker. Why? Sovereign foolishness with funny money ensures this is an absolutely SURE thing.
As Voltaire said - 'Fiat money always reverts to its intrinsic value - which is ZERO'. History always tells us this critical point.
My point? Always play for the long term and you WIN - EVERY TIME.
Go Stackers!
Love the video brother….. Fractional gold is great. I was only a silver stacker because gold just always seemed too much for too litttle. Untill one day I said I’m going to start small and get a 1/10 coin a month…… well that was one month ago and buying fractional gold when I can has gotten me 2.5 ounces that would have never happend if I was just saving for a full once coin!! buy fractional Gold!!
My budget is $500 a month. 1 1/10 gold eagle and the rest for silver dimes. If I hold for a 1/4 or more, something always comes up. 🏴☠️
Thank Scott, maybe next time I'll be able to get fractional gold.I know there's a premium on it.More more so than announce, we'll see.Have a good weekend.
I'll get you a good price when you are ready. Typically, the gold premiums are still less than that of Silver which is a good thing for Gold Stackers.
I have one 1 oz gold eagle. But, at this point, I’m all about fractional eagles 👍
Unfortunately it's the USD that's losing and not the gold that's winning
For everyone outside of the USA it's that situation on steroids. Every currency on the planet is going down compared to USD so not only is the price going up in USD the exchange rate is adding to the cost of gold outside the USA. You might not feel fortunate when it comes to prices when buying gold but the reality is you have the cheapest gold available on the planet.
Love your content Florida Stacker.
Thank you!
Stacking fractional gold is affordable and doable for many of us who can't swing a full oz coin every time we want to add to our stacks. I'd recommend getting a goal and sticking with it over time. I have my latest (second year of kookaburra) tenth oz on its way now. With about 25 tenth oz coins now, I know they do add up if you are consistent with your purchasing.
I just bought some fractional platinum. The premiums are INSANE but otherwise I'd have zero exposure to platinum and the TA said I'd probably regret that.
otherwise you would have excellent exposure to your cash and you will regret that purchase.
Great perspective! I like the way you break it down to the stacking working man stackers. Much appreciated. I don’t have kids although I appreciate your scripture message, I’m saving mine for retirement I guess… I have been a fractional buyer of Gold early on about six years ago. I was buying 1/10 ounce gold but but within the past two years, Ive focused on quarter ounce gold because I want the Gold coin now instead of waiting many months, (recently when gold was holding at 2000, it would r taken me 6 months) but now with gold rising I’m looking at eight months at buying the same one ounce gold coin, I think thats why I choose to go with fractional even at the premium level so I can get the coin now before the prices jump up on the coin… If that makes sense, again thank you
Great to see you, Eli. I just watched a video I did 2 years ago when 1 oz Gold was $1800 and 1/10th Gold was about $200 per coin. Just 2 years ago. It does make sense to me. Quarter Ounce Gold Eagles are going for $670+ right now!!
I bought a gold buffalo back in 2020 at $2080. And back then I thought that was expensive. My last Buffalo purchase was 2021 at 1889. I doubt I will see those prices for a very long time.
Agreed. I can't believe a random date Gold American Eagle is over $2500 now on the Online Dealer pages. Crazy but others say to get used to it, the new normal.
I had always tried to purchase 1oz gold coins to save on premiums. I recently went to a coin show with a stacker that only buys 1/10th oz gold coins. Lots of them. Like 20 at a time. They are well aware they're paying more than they would otherwise but, when questioned, they stress divisibility for sale. This person has been buying gold since the early 90's. They make a very strong case about making sure their gold is as easy to sell as possible and wants the most possible customers for it. Also, assuming gold keeps rising, waiting for 1oz purchases may force you to chase the price to where you won't save as much as you intended. And, you'd have gold on hand sooner, if you're hedging against economic downturns. Anyway, I've resolved to stack more 1/10th oz and 1/4 oz sizes.
In the UK gold sovereigns are a great buy for fractional. Bought some last year at £370 just under 1/4 ounce each. Today they are £470 each. Even if i sell back i would get £430 to £440. My idea is to stack enough so when i get to retire i have enough to sell 1 a month for 20 years to supplement my pension. Still need to stack some more yet. Have a plan and stick to it. It will pay off in the end 😊
Gold is an inflation hedge since ancient times.
If inflation is 5% or 10% per year, gold should go up by the same amount in the long run.
Gold being at $2400/oz today makes perfect sense. Many think it is still way undervalued..
Thank you FS for the excellent video. Another great discussion. I'm all in on fractional gold.
I appreciate that, Robert! Frac has been a great choice for me too. I remember when 1/10 AGEs were getting to the $150 per coin range and people told me I was throwing away money buying them lol
I have some small gold but stopped back when. The premiums are way too high. I found that buying silver solved the small gold problem. I plan on using gold for large purchases such as a car, payoff my house, when the peek sets in. Silver has been doing so much better in May 2024. Of course premiums will be covered withe the rise of value. The key is to maximize your fiat. Buy the silver and trade up to gold as your silver stack grows. DO NOT wait until you have enough fiat to buy some gold. Recommend to not not buy collectibles. Every piece of Ag and Au I have bought, including some FOMO in 2021, the premiums have been covered, and then some! I buy pre--33 gold coins.
Loads of good advice here 👌
Brother I really enjoy your channel and content. I always learn from your experience. I stack fractional gold as one of my strategies as well. I’m in for the long haul.
I love gold.
Very informative. Thank you!
I’ve been buying and accumulating since gold at $700 CAD / ozt and silver at $11 CAD / ozt. 💪🏻
@@doctoruttley you are living proof of stacking's benefit! Smart man
My average cost of gold is $1750 USD FIAT - the fractional I buy is primarily British Sovereigns which are 0.2354 ozT of fine gold. I also have a few 1/10 Maples
Very nice! The sovereigns can be found pretty close to spot if you have a good shop!
I bid on all kinds of small gold coins on ebay(ducats, 2,5 pesos, 4or8 florin, 10 or 20 lcu coins, half or full sovereign, 10 guilders or small 14 karat gold medals as light as 0.65g(1/50oz)). The highest premium i paid was 3,5% on a 2,5 pesos, some of my coins i got for slightly below spot. They are also nice to hold in your bare hands, without having to worry about fingerprints on any mirror finish. Had them all tested and not a single fake.
Outstanding patient strategy!
Buy what you can afford. Purchasing fractional gold gets the job done. It's doable in todays economy.
No worries. We all make mistakes. Great video. Love your ch.!!
I like foreign fractional gold such as ducats and 5 gold pesos, if gold keeps rising I may have to switch to dos y medio pesos(2 1/2 pesos) or half sovereigns. Wish quarter eagles were cheaper for they have almost same gold content as 5 pesos thereabout. (0.1210 vs 0.1206) I wish the German 20-mark gold coin was more common.
Wow! So informative!!
My very first purchase was 10 x 1 grams bars. It was an affordable entry point & got me started on learning about preserving wealth. I then moved onto 10 x half ounces & I’m now looking at my first one ounce purchase - a specific coin, which is a personal goal. However, I can see 10 x 1/10 ounces being my slow, but affordable stacking strategy, over the next 12-24 months, due to inflation. All of my gold is held for retirement.
slow. sure. affordable? I dont know. you are paying premiums you cant afford, are you not?
The fact remains that the gentleman would have locked in more of his savings if he'd spent that money on 1 oz gold coins. And he wasn't buying them over time, he bought a large lot, to obviously give himself a position in tenth ounce eagles. i believe that as prices have risen, the premiums placed on mass produced tenths, can't be justified by the mints anymore. And as stackers, we have to prioritize what we can afford of course and it's nice to have variety in the stack. But it's hard to justify a 30% premium as a routine stacking cost.
It's not always about the lowest premium. Some people buy fractional gold because it will be easier to sell at some point in the future. I wouldn't want to sell a (round number) $3000 coin when I only need $300. To me, it's like stacking 90% Constitutional silver. I would like to hold silver dollars, half dollars, quarters and dimes. I think a mix of coins is good.
Always great content!
Thank you for the kind comment!
A lot of good info🎉
Great content, keep um coming
Thank you, Wes! Much appreciated!
Congrats on your ounce AGE. I have a couple AGEs, now I am working on getting a Gold Buffalo. Thanks for the info.
Thank you! A lot of work for 1 coin 😆
When things go bad or the price explodes and you need to sell, it will be easier to find ten buyers for the 1/10 oz coins than it would to find one buyer for the 1 oz coin.
Exactly. Asset prices are rising more quickly than people can earn to keep up. Fractional will continue to grow in popularity due to that.
BS
Fractional stackers! Don’t be afraid 2.5 or 5 gram bars either. Coins are great but premiums sucks and bars carry less a premium especially if one is willing to search online for the best deals
I just get the 1oz gold, they're way more fun to hold
@@tmsek8155 indeed they are!
👍
I learned fast fractional gold was a better value than silver and started buying bars of all sizes I'm glad I did
How is it better value?
@@adventureswitheddie6444 10 g bars are 4 bucks a gram 20g even better at 2 bucks premium is best value in stacking
@@adventureswitheddie6444 convert 1500 dollars to gold bars for 40 bucks convert same 1500 to generic silver 140 bucks that's why I say gold is a better value
Stac the frac
Not that I'm against metals, but I could say the same thing about a ton of investments bought 16 years ago. Stocks, bonds, crypto, houses, even Pokémon cards. Hindsight is not a strategy.
Well, it worked for me and worked for many others. The moral of the story is that stacking fractional isn't a bad idea given asset prices exceeding real earnings for 3+ years, it has become more difficult to keep up. Fractional allows one to hold gold without forking over $2500 for a single purchase. If you could buy fractional bonds, fractional houses, and fractional Pokémon cards that were slightly higher in premium but allowed for diversification with a smaller budget, would you?
Hey old gold currency is the cheapest way to get fractional gold otherwise save for the oz
Love a gold eagle but for 1/10oz purposes maples and Britannia’s are MUCH better buys. The premiums are similar to that of a 1/2 oz coin if a buyer spends some time searching all the reputable exchanges online and sellers on eBay.
Plus cmon if it was any other country putting 22K gold in their coins we wouldn’t want anything to do with it but bc it’s American we stack it anyway 😂
It killed me to see you talk about purchasing the Eagle recently. I don’t know how people go Eagles over Buffalos at the 1oz level I just font get it. The pure .9999 American Buffalo is the ultimate 1oz gold coin
premiums are similar, sure, but still higher
1/10 ounce gold eagles "have a high premium" just means "they are worth more than their weight" on the market. This coin commands a high premium because... it is a premium coin! I'd rather buy a 1/10 ounce gold eagle every month than do nothing while wishing I could afford more. Slow and steady wins the race.
Actually it means that the production and labor cost for producing a 1/10 gold coin is the same or more as producing a 1 ounce gold coin. You don't have to buy a 1/10oz gold every month, you could choose to buy one every 10 months. It's not an all or nothing situation.
Florida have you try trading your fractional gold for one ounce at your LCS. I'm not sure how that works. Do you sell first then buy or just say let's trade.
1 oz of Fractional Gold is worth more than a single 1 oz Gold Coin or Bar. You'll get more premium back for the smaller coins and end up with a little cash left in your pocket and the 1 oz gold coin. You will lose some of the premium you paid, but if you bought the fractional at a much lower spot price you're winning regardless
When I buy fractional gold I buy bars. Coins are way too costly with the premiums
Prices of gold and silver too high now.....play safe.....
Agreed 🇺🇲🦅⚖️
those are rounds?
No sir. Coins
🇺🇲
Does your employer pay you in precious metals to make these videos?🎉
I pay myself in them. Does that count? Haha
these are exactly the thoughts i've been having
I have $200 that I can spend for gold/silver. What kind of combo of gold/silver would you suggest?
first hit the slot machine to up your purchasing power