Smaller/Fractional Gold if Premium is the Same?

[beacon]

I live in Colombia and have recently inquired about purchasing some gold coins here due to the devaluing of the Colombian Peso. For some reason, some sellers here have no idea that usually the smaller the coin — the higher the premium. They just sell any coin (no matter the weight/size) at the same price per gram. For example, a seller yesterday was selling gold coins for $240,000 COP ($61 USD) per gram. The price of the gram sold being the total weight of the coin, not the gold content. So for example, a Mexico Dos Pesos coin, which weighs 1.66 grams total cost $398.000 COP ($102 USD).

If that is the case, if premiums for all coin sizes are the same, should I go for the smaller coins? (Mexico Dos Pesos and 20 Francs being an example) or a larger coin such as a Mexico 50 Pesos?

I did see a few proof coins (with scratches I believe), around the 1/2 oz. range. These also are sold at the same premium percentage as the rest. Would this be a wiser choice, even if it is in AU condition?

I guess if I ever sell my coins in the U.S. or Europe (where sellers/buyers are conscious of the premium to coin-size ratio), the smaller ones might be more liquid and sell for a higher premium.

[James32]

Well firstly congratulations and buy the whole dam shop🤣

Smaller denomination will be more liquid yes,and you may even make more at the other end depending on your audience. 

In my humble opinion, proofs if scratched are now just bullion when selling, so unless you love the design and plan to hold for a long time,then don't bother.

I'd buy a mixture of both large and small to cover every eventuality ( if you need a lump of money one day,then one sale is better than 5 Smaller ones) and the reverse is also true....if you only need a small amount, no point selling a whole  1oz or bigger coin.

[Dakaras]

Agree with everything @James32 said! I would love to be in that position, my house would be full of 1 and 2 gram coins

[Pete]

If the price per gram of fine gold is fixed by the seller and you can purchase say 20 x 1/10th ounces  or 2 x 1 ounces for the same price, assuming the coins are similar carat e.g. 22 ct or 24ct then  I would always go for the smaller fractional coins.
Two reasons - 1. you can always sell a few rather than the entirety and 2. generally in the open market people will pay a higher premium for smaller coins so you have a little more to gain when selling.

[sovereignsteve]

It's a no brainer. You should always be able to sell a small coin at a larger premium than a large one. Assuming of course there are no numismatic or popularity issues.

I would firstly check for any coins of numismatic value, assuming such coins could be sold at a profit in Columbia. Followed by any coins of high gold content, small ones first. Then general small coins followed by large ones assuming you have the funds!😉

[Thelonerangershorse]

Out of curiosity, what's the postage from Colombia?

[James32]

Just now, Thelonerangershorse said:

Out of curiosity, what's the postage from Colombia?

Was thinking the same lol

[27carrots]

The state of affairs can be very different from country to country.

A 20 pesos for example generally has about a 20-25% premium here but less than 7% in the US.

It may just be how it is that people only care about the weight of the coin there.

In that situation you should still go for smallest coins going as you can sell smaller bits as you please in the future.

Also go for highest purity so you get more gold for your money in case you get the chance to sell abroad.

But if you sell in Columbia it might not make any difference if weight is all that counts there.

[LawrenceChard]

7 hours ago, beacon said:

I live in Colombia and have recently inquired about purchasing some gold coins here due to the devaluing of the Colombian Peso. For some reason, some sellers here have no idea that usually the smaller the coin — the higher the premium. They just sell any coin (no matter the weight/size) at the same price per gram. For example, a seller yesterday was selling gold coins for $240,000 COP ($61 USD) per gram. The price of the gram sold being the total weight of the coin, not the gold content. So for example, a Mexico Dos Pesos coin, which weighs 1.66 grams total cost $398.000 COP ($102 USD).

If that is the case, if premiums for all coin sizes are the same, should I go for the smaller coins? (Mexico Dos Pesos and 20 Francs being an example) or a larger coin such as a Mexico 50 Pesos?

I did see a few proof coins (with scratches I believe), around the 1/2 oz. range. These also are sold at the same premium percentage as the rest. Would this be a wiser choice, even if it is in AU condition?

I guess if I ever sell my coins in the U.S. or Europe (where sellers/buyers are conscious of the premium to coin-size ratio), the smaller ones might be more liquid and sell for a higher premium.

First, find out the AGW, or Actual Gold Weight.

There are plenty of online sources where you can find the fineness of gold coins, or the actual gold content.

Then buy on the basis of premium or discount to actual intrinsic gold value.

As you have thought out, it may be beneficial to prefer smaller coins rather than larger ones, if you are paying the same premium.

But...

Make sure the coins you are buying are genuine.

At least 3 of the half sovereigns appear to be fake, the top photo middle coin in lower row, and both of those in the last photo.

It is possible, and even likely that the other 2 half sovereigns are also fake.

It is difficult to tell due to the quality of your photos, and shooting through the plastic capsules does not help.

Somebody once told me Colombian Gold was the best, but I think he was referring to a herbal product!

😎

[CANV]

There is a reason why the sovereign is king.. er or queen.  Just the right size 

[beacon]

4 hours ago, LawrenceChard said:

First, find out the AGW, or Actual Gold Weight.

There are plenty of online sources where you can find the fineness of gold coins, or the actual gold content.

Then buy on the basis of premium or discount to actual intrinsic gold value.

As you have thought out, it may be beneficial to prefer smaller coins rather than larger ones, if you are paying the same premium.

But...

Make sure the coins you are buying are genuine.

At least 3 of the half sovereigns appear to be fake, the top photo middle coin in lower row, and both of those in the last photo.

It is possible, and even likely that the other 2 half sovereigns are also fake.

It is difficult to tell due to the quality of your photos, and shooting through the plastic capsules does not help.

Somebody once told me Colombian Gold was the best, but I think he was referring to a herbal product!

😎

Thanks, had no idea if they were fake or not. I have heard that sovereigns are faked. I will definitely try to avoid those and make the the dimension and weights of the Mexican Pesos are correct.