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1/20 oz
1/20 oz gold coins are the perfect first step into the gold market for anyone seeking a way of diversifying their investment portfolio. Bank interest rates are currently very low and are leaving most investors looking for alternatives. Gold is a great way to invest for the future without taking significant risks, but can be a complicated affair if you venture into the gold collector’s marketplace.
1/20 oz gold coins are small denominations of gold and as such allow you to experiment in this marketplace for the first time or indeed break your portfolio down into small, easily manageable portions.
Why buy gold coins?
Gold has been used for centuries by individuals and governments as a way of inflation-proofing wealth and investing for the future. Pure gold is a great way to get a return on your cash while at the same time investing in something that you can look at, touch and appreciate. That said, collector’s gold coins can be difficult to track down, expensive and a hard market to understand. This is where investment gold coins really come into their own.
Produced on a limited basis, 1/20 oz gold coins that are minted for investment purposes give you all the convenience of investing in gold, without the need to be an expert. This is because these coins trade near spot value and are in ready, albeit limited supply.
What exactly is a 1/20 oz gold coin?
A 1/20 oz gold coin is just like the loose change you have in your pocket, except it is made of gold. Typically round and featuring an attractive image on either side, the coin will vary in size but not surprisingly will weigh 1/20 of an ounce of pure gold which is 1.55 grams.
How big are they?
1/20 oz gold coins come in slightly different sizes and thicknesses but have one thing in common and that is that they weigh 1/20 of an ounce.
Who produces these coins?
Gold coins of this nature are produced in a limited number but on a regular (normally annual) basis by mints around the world. The likes of the Australian Mint and the People’s Republic of China Mint produce coins that have names such as Lunar Goat 1/20 oz gold, made in 2015 and Panda 1/20 oz gold, made in 2014.
What is their legal status?
Any 1/20 oz gold coin that has a face value marked on it has a legal value of that face value. Needless to say however, the actual market value of the coin bears no resemblance to the face value and is typically made up of the value of the gold plus the face value.
How pure are 1/20 oz gold coins?
The purity of these coins is the same as many of the other gold coins we have in our prestigious collection and is typically 999.9/1000, making this gold fall into the category of 24 karat.
How much do they cost?
These coins trade very close to the gold spot price, which is what makes them such an attractive investment vehicle.
Where should I buy?
If you are thinking of investing in 1/20 oz gold coins for the first time, it’s very important to trade with a business you trust. You should look out for a supplier who has sufficient influence in the market to be able to trade their coins at only a small amount over spot; who has a good selection of coin denominations and has sound experience of the gold market.