Quite separate fro Numismatic Gold Coins, gold prices jumped 28% to a record high of $1923.70 in September 2011 due to fears surrounding the ongoing European debt crisis. Gold prices are on an upward trend for the eleventh consecutive year in 2011. Gold held in ETFs globally surged to a record high of 2,358.206 metric tons in December. Gold demand globally surged 11% year-over-year to 981.3 tons in the first quarter of 2011, versus 881.0 tons in the first quarter of 2010. This was equivalent to $43.7 billion in value terms, up from $31.4 billion in the first quarter of 2010, driven by strong demand for coins and bars. Demand for coins and bars jumped 52% year-over-year to 366.4 tons. In terms of value, coin and bar demand surged to $16.3 billion, versus $8.6 billion in the first quarter of 2010. Investment demand climbed 26% year-over-year to 310.5 tons in the first quarter of 2011, from 245.6 tons in the first quarter of 2010. However, investment demand was $13.8 million in value terms. Demand for jewelry climbed 7% year-over-year to 556.9 tons in the first quarter of 2011, versus 521.3 tons in the year-ago period.

India and China together accounted for 63% of the total jewelry demand in that period. Global demand for gold inched up 6% year-over-year to 1,053 tons in the third quarter of 2011. This was equivalent to an all-time high of $57.7 billion in value terms. This strong rise was due to a 33% year-over-year surge in investment demand of gold. Investment demand climbed to 468.1 tons, generating a demand of $25.6 billion in the quarter. Due to this strong rise in gold prices, demand for numismatic gold has also increased.

Numismatic Gold Coins: Tips To Test Gold Quality
Since an investment in gold is going to be a fairly large one, it is important to know your investment is into good quality. Gold is often found in nature, mixed with other metals like pyrite that look like gold. However, these metals do not have similar chemical and physical properties. There are some tests that can help you check the purity of gold. Before buying numismatic gold, a person needs to look at various ways to check the purity of gold.

• You can use the Mohs scale to test gold. Gold generally has a hardness of around 2.5 to 3 on the scale. Glass, having hardness of 5.5, is harder than gold. Try to scratch glass with gold. If gold scratches the glass, it is not pure gold.
• You can test the purity of gold by holding a magnet close the gold. In case the magnet attracts the piece of gold, that piece is not pure gold.
• You can test gold through an acid test. For this test, use gloves and protective glasses. After that, scratch the piece of gold on the test stone to make a visible line. Place a drop of test solution of around 10k on the line on stone. In case, the line on the stone disappears after the reaction, the content of gold is below 10k having a little gold content in the metal. In case the metal line does not disappear, there is more than 10k gold content in the metal. For determining higher karats of gold content, repeat the step using a higher amount of acid solution. In case the line remains using the 22k acid solution, the metal may have 24k gold content.
• You can also test gold through a vinegar test. Clean the gold piece and remove any dust or dirt from the piece. Dispense two to three drops of vinegar on the gold piece. After that, observe any changes in the color of gold. In cases where the color changes, the piece is not real gold. After the test, wash the gold piece with water to remove the vinegar from the piece.
• You can also test gold by wearing the gold on any part of your skin. In case, discoloration happens on that part of the skin, the piece is not pure gold.
• Gold can also be tested by looking closely at the piece. In case the piece is too shiny, it is not pure gold. Gold color should be soft yellow.
• Use a razor blade to cut a little piece of gold. Put that piece into hydrochloric acid. In case the metal does not dissolve, it is pure gold.

Gold is valued as per market prices. However, if the piece of gold is not pure, you may not receive a very high price for it. There are coins that are valued and graded as per the condition of the coins, these are Numismatic gold coins .