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Why are half ounce bullion gold pieces not catching on?

CaptHenwayCaptHenway Posts: 32,118 ✭✭✭✭✭
in Precious Metals
Just curious.....at these record levels for gold, why aren't half ounce gold bullion pieces catching on more? I realize that traditionally the premiums are substantially higher, but if the premiums are within reason, why aren't they the affordable alternative?

For example, right now APMEX is running a one-day sale on half ounce gold eagles, date of their choice. Single coins are melt +$34.99, or about 4.866%. By the roll they are +$29.99 per coin, or about 4.166%.

In this day and age, with full ounce anythings selling for around $1500, are half ouncers worth considering?

TD
Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.

Comments

  • PerryHallPerryHall Posts: 46,113 ✭✭✭✭✭


    << <i>Just curious.....at these record levels for gold, why aren't half ounce gold bullion pieces catching on more? I realize that traditionally the premiums are substantially higher, but if the premiums are within reason, why aren't they the affordable alternative?

    For example, right now APMEX is running a one-day sale on half ounce gold eagles, date of their choice. Single coins are melt +$34.99, or about 4.866%. By the roll they are +$29.99 per coin, or about 4.166%.

    In this day and age, with full ounce anythings selling for around $1500, are half ouncers worth considering?

    TD >>



    Normally, fractional gold carries a higher premium as a percent of melt than full ounce gold coins. As gold continues to rise in value, fractional gold will gain in popularity among middle class investors due to their higher affordability compared to full ounce coins.



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  • akuracy503akuracy503 Posts: 1,923 ✭✭✭
    Seems gold is getting very little conversation in comparison to silver these days.

    I too wonder if there is a real reason behind this, is confidence in gold just too low?
    Or have we developed a new crowd of silver/fast buck types that arent favorable to diversification in yellow stuff.

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  • derrybderryb Posts: 36,793 ✭✭✭✭✭
    The smaller the gold eagle the higher the premium over spot. This has always held true for gold eagles. Tulving prices for example (they only sell in quantity):

    2011:
    $5 - 13%
    $10 - 10%
    $25 - 7%

    Dates their choice:
    $5 - 12%
    $10 - 5%
    $25 - 4.5%

    Apmex's price for the $25 is "date of their choice" and the premium special is probably because of a recent large purchase on their part. The important thing to note in the above premiums is that, like silver eagles, as the price of the metal has climbed so has the premium percentage. A double whammy for current eagle buyers. A reduction in a large dealer's sell premium for prior year coins is sometimes a good indicator of an increase in the "cashing in" by the public and their sentiment on the coming direction of the market. Other times this premium reduction is due to one major purchase by the the dealer.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • OnlyGoldIsMoneyOnlyGoldIsMoney Posts: 3,361 ✭✭✭✭✭
    I like to pick up 1/2 oz US gold arts medallions when I can.

    Many of the Marian Anderson and Willa Cather 1/2 oz coins I have were bought below spot. Unpopularity can have its advantages.
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  • jmski52jmski52 Posts: 22,824 ✭✭✭✭✭
    The "W" burnished 1/2 oz AGEs are selling for impressive premiums now.
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    I knew it would happen.
  • WeissWeiss Posts: 9,941 ✭✭✭✭✭
    The curse of the 1/2?

    When was the last time you spent a half dollar? I use hundreds and twenties pretty frequently, but almost never use $50s.
    We are like children who look at print and see a serpent in the last letter but one, and a sword in the last.
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  • DrBusterDrBuster Posts: 5,378 ✭✭✭✭✭


    << <i>The curse of the 1/2?

    When was the last time you spent a half dollar? I use hundreds and twenties pretty frequently, but almost never use $50s. >>



    Poker player? Gamblers generally don't use fifties.

    I almost always spend a half or 2 a day as happy hour partial tips.

    When I got my proof AGE's I debated a half, but just did the 1/10 and a 1/4. Hoping the 1/4 was the lowboy for mintage.
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