As the impact of global financial crisis is seeping to the general public, investment in gold has picked up momentum. The general market consensus is that Greece will inevitably default, despite the bailout efforts, forcing the parliament to adopt the unpopular austerity measures. Charlie Morris, HSBC Global Asset Management, recently spoke about the stability on gold prices in the face of the Euro zone debt crisis. Morris further added that a lack of gold supply, coupled with the mushrooming demand, makes it a good time to consider buying gold coins.

According to the World Gold Council, the current consumer demand for gold in India is a staggering 1,035 tons, while China comes second with a demand of 714 tons. In fact, the Bank of China has more than doubles the minting of gold “Panda” series so far in 2011. Perth Mint in Australia also sold record volumes of gold coins in the first half of the year, while the US Mint has shown upbeat sales levels for both gold and silver coins.

Buying Gold Coins: Your Options

Gold bullion is the preferred option for those who seek to buy gold coins purely as an investment. Their value is directly related to the precious metal content, and their prices rise and fall with the fluctuations in spot price. American Buffalo, American Eagle, Australian Nugget, Canadian Maple Leaf, Chinese Panda and South African Krugerrand are some of the most popular bullion series.

Numismatics are another popular investment option. The value of these coins is determined by factors such as scarcity, condition, grade and demand, instead of their gold content. $20 Saint-Gaudens, which takes its name from Augustus Saint-Gaudens, the famous American sculptor, is a popular numismatic series. Liberty/Coronet Gold Coins are another sought-after alternative. Its history can be traced back as far as the California Gold Rush in 1848. Most numismatics are graded by a regulatory agency, such as Numismatic Guaranty Corporation (NGC) and Professional Coin Grading Service (PCGS).

One can also consider buying semi-numismatic gold coins, which mainly fluctuate with the spot gold price- but also have additional value above the precious metal content. When planning to buy gold coins, some popular semi-numismatics to consider are:

• French gold coins: The French 20 Francs gold coins have been in circulation through the nation’s rich history. Three coins are available in three series- the Angel, Napoleon III and Rooster. According to legends, the 20 Franc Angel coin brings good luck to its owners.

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• British gold coins: The history of the British Sovereign dates back as far as over 5 centuries ago, when the first 20-shilling gold coin was issued by Henry VII in 1489. Every coin in this series contains about a quarter ounce of pure gold.

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• Swiss gold coins: A favorite of semi-numismatic investors, the Swiss 20 Franc gold coins feature a Swiss Miss (Vreneli) on the front and a Swiss shield on the back.

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Outlook for Buying Gold Coins

There is a significant demand for gold coins by central banks around the world. Michael Haynes, CEO American Precious Metals Exchange in an interview with CNBC stated that the yellow metal has a favorable outlook, at least in the near future, as the banks consider it to be a ‘safe’ asset to back up their economies as well as currencies. Additionally, the World Gold Council has affirmed that the central banks will be key buyers of gold this year, as well as in 2012. The Central Bank of India was one of the major players at the gold sale 2010-11, which purchased 400 tones of gold for backing up the Rupee.