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Fractional Gold Explained

What is "fractional gold"?

Generally, one ounce (1oz) is the standard size for a gold coin. Fractional gold refers to any gold products that have less than one troy ounce of gold in them. While a full 1oz gold coin commands a price of thousands of dollars, opting for fractional gold allows for investment at a fraction of the cost. This makes diversifying with fractional gold a more affordable and accessible option for many investors.

Definition of a Gold Dollar

A “Gold Dollar” cannot be purchased from the US mint as a coin, but rather is a mathematical representation of 1/50th of a 1oz gold coin. When members purchase gold dollars they are purchasing parts of a gold coin, or in other words—gold coin holdings. If you were to have 50 Gold Dollars on your UPMA account and wanted to withdraw those holdings, you would receive a 1oz Gold Coin.

The daily value of the Gold Dollar can be seen on any member’s account dashboard page, or via the daily rates posted on the UPMA or Alpine Gold websites.

Face value, sometimes called nominal value, is the value of a coin, bond, stamp or paper money as printed on the coin, stamp or bill itself. Market value, however, need not bear any relationship to the face value.

Your Gateway to Gold Investment

Fractional gold can be useful as part of a broader investment strategy. But how do you get started?

With the convenience of a UPMA account, engaging in transactions with fractional gold has never been easier. Become a gold investor effortlessly by incorporating Gold Dollars or Goldbacks into your portfolio with just a few straightforward steps. Login to your free account here to unlock access to the most liquid precious metal accounts worldwide. Already a UPMA Member? Here’s a step-by-step walkthrough of how to add funds your existing account.

Innovative Products

Additionally, Goldbacks allow for even smaller denominations suitable for everyday transactions. One (1) Goldback contains 1/1000th of an ounce of gold.

When you own 1000 Goldbacks, you own the same amount of gold as owning a 1oz Gold Buffalo coin. Because you can use Goldbacks for practical transactions, they have an exceptional value that exceeds the value of just their gold content. Learn more about Goldbacks and how they are made here.