I also have investments on silver as well. The thing is, if you look at the trends in the gold charts, they are more bullish and on an uptrend, be it 30 days or 365 days. Hence I would see it as a safer bet.

For silver, it’s more volatile with one of the reasons being that its a lot cheaper than gold.

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Personally, I preferred Silver over Gold (ie. I also like Gold), which will play catch-up in the next uprun.

Target for Gold at US$1000 and Silver at US$25 per ounce within the next 12 months.

This is my perspective of why a smaller gold coin commands a higher premium than a larger gold coin.

From my understanding, the premium for gold coins consists of a few factors. One of which is manufacturing costs.

Assuming that we use a single machine to process raw gold into gold coins (I’m sure there are more complicated processes behind the scenes). The same machine can generate a variety of gold coins, from 1 Oz to 1/20 Oz coins with the same amount of effort.

As the same amount of effort (cost) is used to create every single coin, costs is divided by the number of coins (and not by weight).

Because a 1/20 Oz coin will cost the same amount of cost to produce as a 1 Oz coin, the total cost to purchase a 1/20 Oz coin would appear higher than a 1 Oz coin.

I hope this answers your question.

Get to your blog through the Gold investing thread @ HWZ. I’m a novice in this area but is interested in buying Gold bullion coins. Just wanna seek advice from you on how come the premium tends to be higher for smaller denominations of coins.

Eg. 1/20 Oz coin bank sell 80.25 and buy @ 49 while 1 Oz coin bank sell 1123.50 and buy 1002.00. Shouldn’t 1 Oz command more premium since it has more Gold content in it?