Short answer: fractional gold is gold sold in pieces smaller than one troy ounce (31.1035 grams).
- The classic small coin holds 1/10 ounce.
- One-gram bars go smaller.
- The smallest pieces you can buy are measured in milligrams. The ¼ Goldback holds 1/4,000 of a troy ounce, about 7.78 mg of 24k gold.
This guide covers the whole ladder, from coins to bars to Goldbacks. It explains why smaller pieces cost more per ounce and where to buy each size.
What is fractional gold?
Fractional gold is any piece of gold below one troy ounce, sold with a stated weight and fineness. It comes in four physical formats:
- Coins come from government mints. They carry a face value and a sovereign guarantee of weight and purity.
- Bars come from private refiners and sell by weight. Small bars usually ship sealed in a tamper-evident assay card with a serial number.
- Rounds look like coins, but private mints strike them with no face value.
- Polymer-encased gold bonds a thin layer of gold between polymer sheets. Goldbacks use this format.
Fractional gold is not the same as fractional ownership. A vault account or a gold fund sells you a claim on gold stored somewhere else. This guide covers gold you can hold.
Fractional gold bars and coins, side by side
| Piece | Gold content (troy oz) | Gold weight | Format |
|---|---|---|---|
| 1/10 oz coin (American Gold Eagle) | 1/10 | 3.11 g | Coin |
| 1/20 oz coin (Canadian Gold Maple Leaf) | 1/20 | 1.56 g | Coin |
| 1/25 oz coin (Austrian Gold Philharmonic) | 1/25 | 1.24 g | Coin |
| 1 gram bar | about 1/31 | 1.00 g | Bar |
| ½ gram wafer | about 1/62 | 0.50 g | Bar |
| 1 grain bar | 1/480 | 64.8 mg | Bar |
| 1 Goldback | 1/1,000 | 31.1 mg | Polymer-encased |
| ½ Goldback | 1/2,000 | 15.55 mg | Polymer-encased |
| ¼ Goldback | 1/4,000 | 7.78 mg | Polymer-encased |
Coins are the most familiar small format. The 1/10 ounce American Gold Eagle measures 16.5 mm across, about the size of a dime. A ¼ Goldback holds one four-hundredth of the gold in that coin.
Small gold bars: how small do they go?
When people search for small gold bars, they usually mean the one-gram bar. Refiners seal it in an assay card that shows its weight, fineness and serial number. Some one-gram bars come as a single sheet of sections you can snap apart. Wafers go down to half a gram, and specialist refiners make bars as small as one grain, or 64.8 mg.
Below about a gram, the packaging matters as much as the metal. You can't check a sliver of gold on a kitchen scale, so you rely on the sealed card, the serial number and the seller.
Goldbacks: the smallest gold in a note
Goldbacks take a different route to small sizes:
- How they're made: a patented vacuum-deposition process layers 24k gold between two polymer sheets, in exact fractions of a troy ounce.
- What's on each note: its gold content along the bottom, a unique serial number, and hand-drawn art from a U.S. state series.
- UV ink: notes from 2025 onward also carry UV-reactive ink that shows up under a UV light.
The math stays simple:
- Four ¼ Goldbacks hold the same gold as one 1 Goldback.
- Larger notes scale the same way: the 2 Goldback holds 1/500 oz, the 5 holds 1/200 and the 10 holds 1/100.
- 1,000 1 Goldbacks add up to a full troy ounce.
The Goldback Denominations Guide covers every size.
At GoldATM:
- ¼ Goldback: the California, Florida and Idaho notes
- ½ Goldback: the Arizona, Florida, Idaho and Oklahoma notes
Browse every quarter note in 1/4 Goldbacks and every half note in 1/2 Goldbacks.
Premium over spot: why small gold costs more per ounce
Every piece of gold sells for more than the raw metal inside it. That difference is the premium over spot, where spot is the market price of one troy ounce of gold.
Minting, packaging, authentication and shipping cost about the same per piece, whatever the piece weighs. Spread a fixed cost over less gold and the premium per ounce rises with every step down in size:
- A one-ounce bar carries the lowest premium per ounce.
- A 1/10 ounce coin carries more.
- A gram bar or a Goldback carries more again.
Goldbacks also carry the cost of the deposition process, the original artwork and the security features.
One detail sets Goldbacks apart: Goldback Inc. applies the same premium to every denomination. Four ¼ notes cost the same as one 1 Goldback, so you don't pay more per ounce for choosing the smaller note.
To work out the premium on any piece:
- Multiply the spot price by the piece's gold weight in troy ounces. That gives the melt value.
- Compare the melt value with the price you pay.
For the Goldback side of this, read Why Do Goldbacks Cost More Than Spot Gold?
What is the cheapest way to buy gold?
It depends on what "cheapest" means to you.
- Lowest cost per ounce: buy the largest piece you can afford, such as a one-ounce bar or coin, from a seller with a low premium and fair shipping.
- Lowest price to own real gold: buy the smallest piece. In our store, that's the ¼ Goldback, the lowest-priced gold item we sell.
- Lowest total cost on any order: compare the full checkout price, including shipping, insurance and sales tax, not just the item price.
Who fractional gold suits
- First-time buyers who want to hold real gold before buying more.
- Gift givers. A starter set or a single note makes a gold gift that fits in a stocking. See Gold Gifts.
- Collectors who build a state series, or collect one denomination across states with a set like the 1/4 Goldback Multi-State Set.
- Anyone who wants gold in small units they can add to over time.
How to buy fractional gold at GoldATM
Online. shop.goldatm.com carries ¼ and ½ Goldbacks, full state series, and starter sets and multi-state sets.
Prices follow the gold market and update daily, and there's no minimum order. Orders ship within 48–72 hours of payment, at $9.99 flat or free over $1,000.
In person. A Gold ATM sells Goldbacks for cash:
- The machines take $1 to $100 bills.
- You need no account or app, and standard purchases need no ID.
- A purchase takes under a minute.
Find the nearest machine with the GoldATM locator. Check its location page before you go, since the notes loaded in each machine vary.
Wherever you buy, check the serial number, the printed gold content and, on 2025 and later notes, the UV ink. How to Verify Your Goldbacks covers each check, and Where to Buy Goldbacks compares every buying option.
Frequently asked questions
What is fractional gold?
Gold sold in pieces smaller than one troy ounce (31.1035 grams). It comes as coins, bars, rounds and polymer-encased gold such as Goldbacks.
What is the smallest gold you can buy?
The smallest pieces are measured in milligrams. The ¼ Goldback holds 1/4,000 of a troy ounce, about 7.78 mg of 24k gold. Specialist one-grain bars hold 64.8 mg.
How much does a small gold bar weigh?
The most common small gold bar weighs one gram. Wafers go down to half a gram, and specialist bars to one grain (64.8 mg).
Why does fractional gold cost more per ounce?
Making, packaging, verifying and shipping each piece costs about the same whatever it weighs. Spread over less gold, those costs add up to a higher premium per ounce.
What is the cheapest way to buy gold?
For the lowest cost per ounce, buy larger bars or coins. For the lowest price to own physical gold, buy the smallest piece: at GoldATM, a ¼ Goldback. Either way, compare the total cost, including shipping and tax.
How much gold is in a 1 Goldback?
1/1,000 of a troy ounce, about 31.1 mg of 24k gold. A ½ Goldback holds 1/2,000 and a ¼ Goldback 1/4,000.
Where can I buy fractional gold?
Online at shop.goldatm.com with no minimum order, or with cash at a Gold ATM. Coins and small bars also sell through bullion dealers.