Technical analyst Michael Kahn was quoted saying, “The recent dip in gold is allowing the metal to get back to a more sustainable rate of exchange.” In an article entitled ‘Technical Analysts say Gold is at a Bargain’, in dailymarkets.com, he went on to explain, “The techies described the recent 20-percent dip in gold prices as a bump in an otherwise long bull road for gold… and the charts support this claim.” Already we see this upward trend, with spot gold prices recovering from the 4 week decline to reach $1,670.80/oz on October 12, 2011.

Most experts would agree that an investment portfolio diversification is incomplete without the safe haven investment of gold and the most secure way of investing in gold is to buy physical gold in the form of bars or gold coins.

Guide to Gold Coins

Acquiring gold coins is not quite as simple as it may first seem. One needs an intimate knowledge of the gold trading market and expert guidance to profit from the fluctuations and price moves.

Define your objectives: Research and study the gold market to define your own goals and objectives, and figure out whether you are purchasing gold coins as asset protection or for growth. Different types of gold coins are available to serve both purposes. Do some background research and you shall find a variety of bullion coins, numismatics, rare coins, proof coins and commemorative coins to choose from.

Portfolio decisions: Decide on the percentage of diversification with gold before you invest. If you are new to gold coins, you should consider an allocation that is between 10 to 30 per cent of your total portfolio.

Research: When acquiring bullion coins, it is always best to buy government minted coins because they are legal tender and have certified pure gold content. Bullion is a long-term investment. Consult with your broker extensively so that you are able to reach your objective of capitalizing on price movements. Acquiring numismatic coins is a more complicated scenario. It allows for long-term asset preservation and serves the additional concerns about capital and monetary controls. Collectors pride themselves in owning artifacts belonging to a unique period in history, and therefore are willing to spend extravagantly on the right coins. Numismatic coins are graded on several factors such as rarity, historical significance and condition. At ITM Trading we specialize in the best numismatic coins to build you portfolio with.

Choose reliable dealers: With the advent of technology it has become easier to counterfeit gold with precise die and gold coin minting that can be used on impure gold. It is also to procure customers via the internet; therefore it is imperative that you choose a reliable dealer who is able to give you gold coins with certifications and guarantee of weight and gold content purity. If you are a collector, beware of copies and look for third party graded coins such as those graded by PCGS (Professional Coin Grading Services) or NGC (Numismatics Guarantee Corporation).