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1/20 oz Gold Coin: frequently asked questions
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The cheapest 1/20 oz gold coin on this page is $223.22 from Gold Secure, sitting around 6.7% over the $4,181.20 gold spot price. Fractional coins like this carry a higher percentage premium than 1 oz coins because minting and distribution costs are fixed regardless of the coin's size.
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A 1/20 troy ounce gold coin contains 1/20 oz of gold. One troy ounce equals 31.1035 grams, so a twentieth of that is 1.5552 grams of fine gold content. Despite its small size, the coin's value is determined directly by its gold weight and the prevailing spot price.
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Each coin requires a similar amount of work to design, strike, quality-check, package, and ship regardless of its size. When those fixed production and distribution costs are divided across only 1.5552 grams of gold rather than 31.1 grams in a 1 oz coin, the cost per gram is significantly higher. That additional cost is passed on as a larger percentage premium over spot.
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Tax obligations depend on your country. In the UK, investment-grade gold bullion coins are free of VAT, but gains above the annual allowance (£3,000) are subject to Capital Gains Tax at 18% or 24%. In Canada, 50% of any capital gain is included in taxable income. In the US, gains on gold coins are taxed federally as collectibles at up to 28%. Reporting requirements also vary, so check your local rules.