In regards to Buying Gold Coins, according to World Gold Council’s report published in Q2 2011, gold outperformed most major financial instruments and assets, including other commodities. Moreover, the average volatility of gold at present is 13.4%. This is well below its long term 20 year average of 15.8%. Additionally, the average price of gold during the second quarter of 2011 was 8.6% more than that during the first quarter of 2011. The WGC also reported that the demand for gold coins increased 29% year-on-year, to reach 390.5 tonnes in the third quarter of 2011.

How to Know Which Gold Coins to Invest in?

There are different types of gold coins in the market to choose from, each priced differently depending on the percentage of gold it contains. When it comes to investing in gold coins it is vital to understand your needs before committing your money.

“People come in because gold’s been hot in the news, but they don’t have a frame of reference.” – Tom Bartholomew, TeleGold Jewelers

Note that, gold coins for investment purposes are different from the ones sold as collectibles. If you intend to purchase gold coins, then bullion coins are the excellent option. This is because the prices of these coins, which have gold content as high as 99%, is primarily determined by the price of gold in the market; making it easier to track the return on your purchase. Some popular bullion coins are the US gold eagle, Canadian Maple leaf and Chinese Panda.

For numismatics/collectors, it is the appeal and rarity of the coins that matter; not just the gold content. American Liberties and St. Gaudens Double Eagles are some popular numismatic coin series. The prices of these coins have been known to appreciate over time, as observed at a recent New York auction where a 642 rare ancient Greek collector’s coin was sold at a staggering price of $25 million.

Buying Gold Coins That Ensure Maximum Returns

Here are some considerations to bear in mind before investing in gold coins to ensure that your purchase was well founded:

• Ensure purity of the gold coins: Experts recommend buying only certified gold coins. Bob Macher, International Coin Collectors Association (ICCA), has advised buyers to be cautious while purchasing gold coins, especially the ones advertised on TV. He warns, “Watch for the word ‘copy’ placed on the coin. It should have the metal name on it.”

• Buy from a genuine dealer: Gold coins can be purchased from banks, jewellers and organizations that deal in gold trading. Banks offer a certificate of purity while selling gold coins. While this certificate ensures safety of investment, it accompanies a premium that can be as high as 10% of the purchase price. Therefore, it is a good idea to consider buying gold coins from a trusted retailer. Besides improving the chances of getting better prices, these retailers can give you tips on when and how to sell your coins to ensure good returns.

• Choose the right time of buying: Buying gold coins during the festive seasons, both here and abraoad, can prove to be a costly affair. It is wise to do some initial market research about the current gold value and its projected performance for the next couple of years. While this may not give an accurate figure, it will surely help plan the investment better.

Remember, investment in gold coins usually requires a large outlay of money, thus making it crucial to do proper research and planning. The good news is, with due diligence and some guidance from a reliable gold company like ITM Trading, Inc. you will be able to make safer and wiser purchases. The gold trade started at the beginning of 2011 at $1388 and closed the year, on December 29, on the higher-end at $1531 for buying gold coins.