What is Fractional Silver?
Fractional silver refers to any silver bullion smaller than one troy ounce. The most common sizes are 1/2 oz, 1/4 oz, and 1/10 oz, though some mints produce 1/20 oz and even 1 gram pieces.
While 1 oz coins and bars are the standard for silver stacking, fractional silver serves specific purposes: barter preparedness, gift-giving, introducing new collectors, and providing flexibility when selling only a portion of your stack.
Available Fractional Sizes
| Size | Silver Value* | Typical Cost | Best Use Case |
|---|---|---|---|
| 1/2 oz | $12.50 | $14-17 | General stacking, gifts |
| 1/4 oz | $6.25 | $7.50-9 | Mid-range barter, gifts |
| 1/10 oz | $2.50 | $3.25-4 | Small barter transactions |
| 1 gram (~1/31 oz) | $0.80 | $2-3 | Novelty/collection |
*Based on $25/oz spot silver price
Pros and Cons of Fractional Silver
Advantages
- Divisibility: Make change in barter scenarios
- Affordability: Lower cost per piece to start
- Gift-giving: Perfect for introducing newcomers
- Flexibility: Sell small amounts when needed
- Prepper value: Essential for SHTF scenarios
Disadvantages
- Higher premiums: 15-30%+ over spot
- Less silver per dollar: Inefficient stacking
- Lower resale value: Harder to sell at full premium
- Limited selection: Fewer product options
- Not IRA-friendly: Most custodians won't accept
The Premium Math
At 25% premium, a 1/10 oz piece costing $3.13 contains only $2.50 of silver. You need silver to rise 25% just to break even. For pure investment, stick to 1 oz products. Only buy fractional for its utility value (barter, gifts, flexibility).
Fractional Silver for Barter
One of the primary reasons investors buy fractional silver is barter preparedness. Here's how different sizes might work in a barter economy:
| Size | Approximate Value | Possible Trade For |
|---|---|---|
| 1/10 oz | ~$3-5 | Loaf of bread, can of gas, small items |
| 1/4 oz | ~$7-10 | Basic groceries, ammunition, tools |
| 1/2 oz | ~$15-20 | Week of food, services, equipment |
| 1 oz (for comparison) | ~$28-35 | May be too large for small transactions |
Best Fractional Silver Products
When buying fractional silver, prioritize recognizable products that will be easy to trade or sell. Here are the best options:
- Canadian Silver Maple Leaf (1/2 oz) - Sovereign coin with .9999 purity, highly recognizable
- Sunshine Mint Rounds - Available in 1/2 oz and 1/4 oz with MintMark SI security
- SilverTowne Rounds - Affordable fractional rounds from established mint
- APMEX Fractional Rounds - Wide selection of sizes and designs
- Generic Fractional Rounds - Lowest cost but less recognizable
Alternative: Constitutional Silver
Pre-1965 US dimes (90% silver) are a natural fractional silver option. Each dime contains ~0.0715 oz of silver, worth about $1.80 at $25/oz spot. They're instantly recognizable and carry lower premiums than minted fractional rounds. Consider adding "junk silver" dimes to your barter stack.
How Much Fractional Silver to Own
Most financial advisors who recommend precious metals suggest keeping fractional silver as a small percentage of your total silver holdings:
- For general investors: 5-10% of silver stack in fractional
- For preppers: 10-20% for barter flexibility
- For new collectors: Start with any size you can afford
The majority of your silver should be in 1 oz coins or bars with lower premiums. Treat fractional silver as a utility holding, not your primary silver investment.
Where to Buy Fractional Silver
- SD Bullion - Good selection at competitive prices
- JM Bullion - Wide variety including sovereign fractional coins
- APMEX - Largest selection, higher prices
- SilverTowne - Direct from mint, house brand fractionals
- eBay - Compare prices, buy from top-rated sellers