Fractional Gold Explained: A Beginner’s Guide to Saving Gold in Small Increments

Physical gold is available in different sizes, including fractional-ounce coins and bars. These smaller sizes allow customers to acquire physical precious metals and benefit from increased liquidity and other features that come with diversifying in fractional coins bars. 

The Gold Savings Plan™ provides a way to save gold or silver through smaller purchases based on a customer's selected budget. Customers that want to  make one-time purchases use Jeffersongold.com our concierge trading floor, to diversify their portfolios or existing retirement account. However, customers that may have a smaller budget choose The Gold Savings Plan for recurring savings.

The Gold Savings Plan™ uses 1/100 of a troy ounce (0.01 oz) as its gold purchase increments. This allows the customer to buy at a smaller recurring budget.

But what does fractional gold actually mean? How does 1/100 of an ounce translate into grams? How can smaller purchases accumulate? And what happens when you request physical delivery?

This guide explains the basics.

What Is Fractional Gold?

Fractional gold refers to a quantity of gold that is less than one troy ounce.

The term describes a portion of a troy ounce rather than a particular type of coin or bar.

Common examples include:

• 1/2 troy ounce

• 1/4 troy ounce

• 1/10 troy ounce

• 1/20 troy ounce

• 1-gram gold bars

• 1/100 troy ounce

A troy ounce is the standard unit of weight used for precious metals. One troy ounce equals approximately 31.1035 grams.

Here are some approximate conversions:

The Gold Savings Plan™ uses 1/100 troy-ounce (oz)  increments of gold and 1/10 oz increments of silver 

What Does 1/100 Ounce of Gold Mean?

One hundredth of a troy ounce is written as 1/100 oz or 0.01 troy ounce.

Since one troy ounce contains approximately 31.1035 grams:

31.1035 ÷ 100 = approximately 0.311 grams.

Therefore, one 1/100-ounce increment represents approximately 0.311 grams of gold.

This measurement makes it possible to save gold in smaller sizes and enables increased liquidity.

For example:

• 10 * 1/100oz Gold Units = 0.10 oz

• 25 * 1/100oz Gold Units = 0.25 oz

• 50 * 1/100oz Gold Units= 0.50 oz

• 100 * 1/100oz Gold Units = 1.00 oz

Is 1/100 Oz Gold a Physical Gold?

Yes. 100% Tangible, Physical Gold Stored at a fully insured C3 Vault Depository in Dallas Texas(*)

A fractional gold coin or bar is a physical product manufactured to contain a particular quantity of gold. For example, the 1/10 oz 91.67% American Eagle Gold Bullion Coin, or 1 Gram 99.99% pure Argor Heraeus LBMA bar. 

The Gold Savings Plan™, provides 1/100 oz, 99.9% pure Gold savings and 1/10 oz, 99.9% pure Silver savings. Gold and silver purchased through The Gold Savings Plan™ are held as pooled physical precious metals at the insured depository.

(*) Unless another depository is selected by the company. 

How Does Fractional Gold Savings Work?

The process involves the customer’s creation of a Gold Savings Plan™ to buy smaller quantities of gold or silver and recording the corresponding holdings in the customer's account accessible via www.goldsavingsplan.com/auth# 

Customers may choose a direct purchase via jeffersongold.com or a recurring purchase via the Gold Savings Plan™

When a purchase is executed, the quantity of gold credited to the customer’s account depends on the purchase price and recurring budget selected by the customer 

Over multiple transactions, Gold or Silver Savings gradually increase.

For example:

• 25 * 1/100oz Gold Units = 0.25 oz

• 50 * 1/100oz Gold Units = 0.50 oz

• 100 * 1/100oz Gold Units = 1.00 oz

The quantity acquired from a particular dollar contribution can vary because precious-metal prices change.

A recurring contribution of the same dollar amount therefore does not necessarily acquire the same quantity of gold each time.

Can Small Gold Purchases Add Up to deliverable 1/10 oz coins or gram bars?

Yes.

When customer decide to take delivery their 1/100 oz Gold units are converted to 1/10 oz Gold coins or 1 gram bars

For example:

These examples illustrate the mathematics of fractional gold.

The actual number of increments acquired through a purchase depends on the amount paid and the applicable purchase value when the transaction is processed.

Why Consider Buying Gold in Smaller Increments?

Customers have different preferences when acquiring physical precious metals.

Some may wish to purchase physical gold using funds from an existing account. Others may prefer to save smaller amounts over time according to a selected budget.

Fractional gold provides another way to approach physical gold ownership.

With The Gold Savings Plan™, customers can choose their budget, frequency, gold or silver, and activate their Plan.

The appropriate amount and purchase frequency depend on each customer's circumstances and preferences.

How Gold Prices Affect Fractional Purchases?

Precious-metal prices change over time.

Because the quantity purchased by a customer depends on the applicable purchase price and budget when a transaction is executed, the same dollar amount can result in different quantities of gold at different times.

Consider a hypothetical $100 purchase:

• If the applicable purchase value is lower, $100 may acquire a larger quantity of gold.

• If the applicable purchase value is higher, the same $100 may acquire a smaller quantity.

A fixed dollar contribution does not mean a fixed quantity of gold.

The quantity acquired is determined by the applicable pricing and transaction execution.

What Is the Purity of 1/100 oz Gold offered by The Gold Savings Plan?

The Gold Savings Plan™ product information identifies its 1/100 oz C-Gold product as 99.9% pure physical gold. 

How Is Fractional Gold Stored?

Gold and silver purchased through The Gold Savings Plan™ are generally held as pooled physical precious metals. Metals are stored in a fully insured C3 Vault at a third party depository.

What Happens When You Request Physical Delivery?

When a customer requests delivery, gold and silver savings will be converted into 1 gram bars or 1/10oz silver at the then unit price per asset then shipped to the customer’s verified delivery address. All are subject to the applicable value, timing, and shipping charges.

What Can You Purchase Through The Gold Savings Plan™?

The Gold Savings Plan™ product catalog includes savings-plan products, and one-time purchase products for promotional or collectible purposes.

Current product listings include:

• 1/100 oz C-Gold.

• 1/10 oz GSP-Silver.

For current product details, visit the Gold Savings Plan™ product catalog.

Can Fractional Gold Be Liquidated?

Gold Savings Plan™ enables customers to request liquidation of all or part of their gold or silver holdings anytime. Liquidations are generally executed at the then Bid (buyback) price in effect when the transaction is processed. Amounts received upon liquidation may differ from the amount originally contributed or paid.

What Should You Understand Before Starting?

Before opening an account or making a purchase through The Gold Savings Plan™, consider the following questions.

1. How much do you want to Save into Gold or Silver?

Choose an amount that is appropriate for your individual financial circumstances.

2. Do you prefer a one-time purchase or recurring savings?

For one-time purchases using available funds or an existing qualified retirement account such as old 401K, IRAs, TSPs, 403Bs, 457s, etc… then your can reach out to Jefferson Gold Group 855 994 4562 www.jeffersongold.com.

However, If you want to save money on a recurring basis or if you are budget constrained, The Gold Savings Plan™ provides an excellent savings solution in gold and silver. You can get started here: www.goldsavingsplan.com 

How to Get Started With The Gold Savings Plan™

To get started click here or follow this link https://www.goldsavingsplan.com/auth to create an account

Select your Budget, Select your Frequency, Select Gold or Silver, then Activate

Is there a Tutorial that Can help

Yes, please click here or follow this link: https://www.goldsavingsplan.com/page/tutorial   for an image tutorial that can help you throughout your account creation

A Simple Example of Fractional Gold Accumulation

Consider a hypothetical account that records gold in 1/100-ounce increments.

After a number of purchases, the account could show:

25 units = 0.25 troy ounce

After additional purchases:

50 units = 0.50 troy ounce

And eventually:

100 units = 1.00 troy ounce

This example illustrates the mathematics of fractional units. It does not represent a guaranteed purchase schedule or a prediction of how quickly a particular customer will accumulate gold.

The actual quantity acquired depends on the purchase amount and the applicable purchase value when each transaction is executed.

Fractional Gold and Long-Term Savings

Fractional gold provides a way to acquire physical gold in smaller increments.

Rather than worrying about large transactions when budgets are not permitting, customers can consider smaller budgets and activate their Gold Savings Plan™.

The following calculator helps visualize historical savings data, and theoretical future savings. It is a tool that many customers find useful when deciding to enrol: https://www.goldsavingsplan.com/page/gsp-calculator 

Final Thoughts

Fractional gold refers to a quantity of gold smaller than one troy ounce. It provides a way to understand and acquire gold in smaller increments.

The Gold Savings Plan™ currently uses 1/100 oz of Gold and 1/10 oz of Silver. Physical precious metals are stored in a full insured vault, and eligible holdings may be subject to physical delivery or liquidation according to the applicable terms.

Customers are encouraged to get started immediately, and benefit from the opportunity of gold and silver savings.

Frequently Asked Questions

What is fractional gold?

Fractional gold is a quantity of gold smaller than one full troy ounce. Examples include 1/2 oz, 1/4 oz, 1/10 oz, 1 gram bars and 1/100 oz.

What does 1/100 oz of gold mean?

It means one hundredth of a troy ounce, which is approximately 0.311 grams. The Gold Savings Plan™ uses 1/100 troy-ounce increments for gold purchases.

Can 1/100 oz gold add up to deliverable 1/10 oz and 1 gram coins and bars?

Yes. One hundred 1/100-ounce can add up to any required size.

Can I make a one-time purchase through The Gold Savings Plan™?

One time purchases are available via our sister companies www.jeffersongold.com, and greatamericanbullion.com 

Unless you are buying a collectible note or a promotional product, The Gold Savings Plan™ does not provide one-time purchase options.

Does the same dollar amount always purchase the same quantity of gold?

No. The quantity acquired can change because precious-metal prices fluctuate. The applicable purchase value when the transaction is executed determines the acquired quantity.

Is fractional gold physically stored?

Yes, gold and silver purchased through The Gold Savings Plan™ are held as pooled physical precious metals unless a separate written agreement provides otherwise.

Can I liquidate fractional gold?

Yes, customers can request liquidation of all or part of their holdings, subject to the applicable procedures. Liquidation is generally based on the applicable Bid price when the transaction is executed.

Is fractional gold the same as a Gold IRA?

A Gold IRA, may hold fractional gold, many of Jefferson Gold and Great American Bullion customers buy fractional gold or silver coins and bars using their qualified retirement accounts. Such customers choose fractional precious metals for liquidity and liquidation purposes in the future.  

Is The Gold Savings Plan™gold the same as a Gold IRA?

No, The Gold Savings Plan™ does not touch customers' retirement accounts. Customers use recurring budgets that they set on a monthly, biweekly, or weekly basis to save money into Gold or Silver. 

What is the purity of 1/100 oz C-Gold?

The current Gold Savings Plan™ product information identifies the 1/100 oz C-Gold product as 99.9% pure physical gold.

What happens if my contribution does not exactly match a gold purchase increment?

A contribution may leave a residual amount when it does not correspond exactly to the applicable purchase unit. Customers, residual amount is carried over to the next transaction cycle, and applied accordingly. 

Where can I find the current Gold Savings Plan™ terms?

Review the Gold Savings Plan™ account agreement for the current terms and conditions.