According to the World Gold Council (WGC), India’s gold consumption, including people who Buy Gold, reached a total of 963 tons in 2010. This represents a 66% rise from the previous year’s consumption level. Market experts expect the trend to continue to move upward in 2011. The WGC is also developing systematic investment plans (SIPs) to encourage the rural population to invest in gold coins.

FACTORS INFLUENCING THE PURCHASE OF GOLD COINS
When it comes to acquiring gold coins, there are numerous types to choose from. However, gold experts recommend those coins that have the potentional for long-term gains. The criteria one may look for while buying gold coins is based on the following factors:

• Type of gold coin: This factor is determined by the history of the gold coin. Some popular gold coin types include the American Eagle, American Buffalo, UK Sovereign, Canadian Maple Leaf and Chinese Panda.
• Size of coin: The size of a coin is measured in terms of its diameter. American Eagles are quite popular due to their regular sizes.
• Weight: Weight is usually measured in ounces or grams. The $20 Double Eagle is the first choice of many people due to its one ounce of gold weight.
• Fineness: Fineness means the amount of gold contained in a coin as compared to other metals, such as copper. A Canadian Maple Leaf is made of 24 karat gold, which means 100% fineness. However, American Eagles have only 22 karat gold, which translates to 0.999 fineness. These coins are composed of 90% gold and 10% alloy. Other metals are added to a coin to make its minting easier and to increase its hardness.
• Rarity: This is the single most important factor to count upon while acquiring numismatic coins. A rare coin is not only priced for its inherent gold content but also for its scarcity value.

POPULAR BULLION COINS:
American Eagles: By far the most sought after coins, American Eagles are considered highly precious. All American Eagles in different denominations are made of 22 karat gold. Their face value varies from $2.5 to $50; however, their price does not depend on the face value. Intrinsic gold content and rarity together determine the sales price of an American Eagle.
• South African Krugerrands: These are manufactured in the South African Mint and are extremely durable as compared to other historical coins. This is because they were initially meant to be used for trading purposes and not only to act as gold bullion. The obverse of these famous coins depicts the figure of Paul Kruger, a former South African president, while the reverse shows a springbok, one of the country’s national symbols.
• Canadian Maple Leafs: Produced by the Royal Canadian Mint from the gold mined only in Canada, these coins are the most pure, made of 24 karat gold. Avid collectors may consider buying the deluxe version of these coins if they are not just content with their usual size. The coin shows a beautiful golden leaf on its obverse, and its purity is described on either side of the leaf. On May 3, 2007, the Mint unveiled a Gold Maple Leaf with a face value of $1 million, though its gold content was worth over $2 million at that time.

Australian and UK Sovereigns, Chinese Pandas and the Islamic Gold Dinar are also among the popular choices. There is no perfect choice for all. To many, American Eagles appeal the most; while Maple Leaf is the preferred choice of others who buy gold.