With the security that precious metals provide from the recent economic and political instability, most investors understand that it is a wise idea to invest in gold or silver. But many can't decide what the best way to invest in gold or silver is. The way you choose depends on your reasons for investing in gold, and how much you are looking to spend.

One of the best way for the average person to invest in gold is with gold coins. Gold coins have several benefits over large gold bars. With the exception of the smaller gold bars (say, an ounce or less), gold bars come in large denominations that are somewhat illiquid. For example, if you have a 10 ounce gold bar and you want to sell a half-ounce of it, you can't slice off a piece of the bar. You have to sell the whole thing. On the other hand, if you have 20 half-ounce coins (or small bars, which are available), you can sell just one coin and keep the rest of your investment intact. This liquidity would also be useful in times of severe crisis. Imagine a time of total war and hyper-inflation. Let's say you wanted to exchange some gold for an escape option, or for some necessities such as food or clothing. Smaller denominations would be more useful for buying such necessities. Otherwise you could easily be exploited by people who demanded the entire gold bar. Like being stuck with taxi driver who pretends he doesn't have change for a twenty, you could get taken.

Gold coins are durable and last hundreds of years. Alloys (gold with another metal added) can last for thousands of years. They don't tarnish and don't scratch easily. They're also easily stored because of their small size. Many investors prefer to store their gold coins in their homes, stashed in some secret place, unlikely to ever be found because of their small size. Large gold bullion bars require professional storage and security services, which costs you money. And obviously the reputability of the storage provider needs to be confirmed.

Coins and small bars are also easy to buy, with reputable vendors existing in basically every major city and also online. So how do you choose which gold coins to invest in? There are two things to keep in mind:

1) Some gold coins are pure (999/1000 is considered pure gold, also known as 24 carat gold), but others are only 917/1000 parts gold (aka 22 carat gold). Both are reasonable investments, and as long as the real weight of gold contained is printed on the coin then two one-ounce gold coins will contain the same amount of gold. But pure gold does have slightly higher prestige and may be more easily sellable because they can be melted down easily. In a time of crisis that ability to be melted down may be worth something to someone. I personally prefer the purest gold I can find because I just find it aesthetically more pleasing, and more impressive to imagine its contents. And if you are going to invest in gold coins you should enjoy it!

Some popular coins of 917/1000 purity are:

The US American Eagle

The South African Krugerand

The British Sovereign

Some popular coins of 999/1000 purity are:

Canadian Maple Leaf coins

Australian Kangaroos

The Chinese Panda

(Nice stereotypical names, I know!)

2) Some coins, particularly older coins and rare coins, have "numismatic value", or additional value due to collector's prestige. While these can be just as good investments as any because their prestige is unlikely to decrease, their value doesn't depend only upon the official gold spot prices. If your motivation for buying gold is not as a hobbyist but rather as an investor, it may make more sense to buy a common coin whose value is based strictly on the official gold spot prices (plus a markup/commission, generally ranging from 1% to 5%).

One downside to buying coins or small gold bars rather than large denomination gold bars is that the markup on gold is often higher the smaller the amount you buy. Buying one ounce of gold may cost you 5% more per ounce than buying 5 ounces of gold. With the current gold prices per ounce hovering around $900, that means you could pay $45 extra if you only buy a single one ounce coin. Also remember that, as with large denomination gold bars, there is a bid/ask spread. That means that the price you buy the gold at will be different from the price you can sell the gold back at on any given day. The buy price is typically 3% higher than the sell price. So you can see that buying and selling coins quickly to make quick profits is not a very enticing option. It's a much wiser idea to buy gold with the intention of holding it for security, wealth preservation, longterm investment, and enjoyment. And with such reasonable goals in mind, gold coins are one of the best ways to invest in gold.

Beautiful European gold coins are truly a smart alternative to modern bullion coins such as the gold American Eagle, Canadian Maple Leaf, or the South African Krugerand.

A wide variety of gold bullion coins from Europe are available. You can find golden coinage from European countries such as Austria, Great Britain, the Netherlands, France, Germany, Greece and Italy.

Europe's gold coins are internationally recognized and can be traded throughout the world with relative ease.

These strikes are 1/4 ounce or smaller. The reason for this is due to the fact that these pieces were once actually used as money. Their small fractional size is especially convenient when it comes time to sell, barter, or liquidate the coins.

Gold coinage such as the British Sovereign, French 20 Franc, the German 20 Marks, and the Austrian Ducat, to name only a few, offer all of the benefits of modern bullion, plus added leverage to the gold market because of their scarcity and collectibility factors.

For almost the same price per ounce as modern bullion, classic gold bullion coins from Europe offer many additional benefits. Market availability is subject strictly to what is available on the open market and what has survived the ravages of time, melt downs, hoarding and other means of attrition.

When the United States government last confiscated gold from its citizens via presidential decree in 1933, coins having a recognized special value to collectors of uncommon and unusual value were exempt. If the government once again outlaws and confiscates gold bullion, rare pieces such as European gold coins should be exempt.

There is no secret that the economic world is in shambles today and people are looking for any good investment idea they can find to build a proper nest egg. The traditional methods of 401K plans, blue chip stocks, and savings accounts have failed for many of those savvy retirement investors. However, there is one method that is as close to a guarantee of future solvency as it gets. That method is the purchase of gold for later resale.

Why Buy Gold?

Gold is a good investment for the future because of one simple fact. Gold has historically managed to maintain its value and rarely has it depreciated to any major amount. For instance, the same amount of pure gold that could buy land, a house, and a few horses monetarily two hundred years ago is worth more or less the same now as it was then. The value of horses, and land may have changed but the monetary value of the gold itself keeps up with inflation and other variables to maintain itself.

There are many other reasons to buy gold. These reasons revolve around the concept of collectible value. Gold coins and jewelry can actually be worth more than their material value based on design, age, and overall popularity in the current era. Ancient gold Spanish coins are worth a great deal more than freshly minted bullion coins, for instance. The only reason for this is that they are ancient, historical, and highly collectible.

What Types of Gold are Best to Buy?

The best type of gold to buy is certified bullion. This means that gold coins are considered to be the purest form of gold. To be considered true bullion gold must be nine hundred ninety-nine parts out of one thousand; pure gold. This is shown as 99.9% purity. This is the exact same level of purity as twenty-eight carat gold, the purest form of gold available in jewelry.

Gold can be purchased as jewelry, bricks, ornaments, or coins as an investment. Jewelry and ornaments, much like coins, can be sold for far more than their material worth. However, unlike coins, the market for jewelry and ornaments does tend to fluctuate heavily with trends and current fashion. While any statue, bracelet, or ring can be melted down for its true gold value the extra amount that can be garnered will change based on popularity and antiquity of the piece.

By far the most sought after form of gold to purchase is bullion coins. Governments tend to mint them on a yearly basis currently and each one of them is valued at a certain set price. Once purchased, their value can increase dramatically in only a few years. Coins in that design for that year will never be minted legally again. Some of the most popular are the South African Krugerrand, the British Sovereign, and the US Gold Eagle. However, the US Gold eagle is not as pure in gold as the other types and has roughly 91.67% pure gold. Most still consider it a bullion coin, even though it clearly does not fall into the true determination of such types of gold. It is not 99.9% pure. Do note, however, that this does not limit its collector's value and these coins are often sought after for this reason alone.

The other popular method of purchasing gold is to buy them in bullion bricks stamped and certified by reliable sources, usually governments or banks. Bullion bricks are easy to keep around and tend to be worth a great deal more on a per brick basis than an individual coin. Old bricks smelted during earlier time periods such as the medieval or civil war era can actually have collector's value as well if they can be proven as such. Generally, though, bullion bricks are bought as a safety net since their value tends to stay constant throughout the years.

Since the beginning of time, gold has always been valued by human kind. It has been traded for, and wars have been fought for it. Because it is the true universal currency, it has an additional value that paper money just doesn't have.

This value is gold's true attractiveness. Whether it's in the form of jewelry, coins, or jewelry made out of coins, the fact that its made of gold is what counts.

At least, that's what you're led to believe. The truth is that there are other factors which play a part, such as the condition your gold is in. If you're buying bullion, which is simply representative of the weight of the gold, then condition isn't important.

However, if you're talking about collector's items, there are a slew of guidelines that apply. Coin collecting is a huge industry. There are systems in place to grade the coin in different aspects, such as condition, quality, design, popularity... its a very complicated system.

If you're going to invest in gold, then go with the collector's items in good condition. Coins that have been authorized by governments are always good.

Some of the most popular coins are the American Buffalo and the British Gold Sovereign. Instead of going with the same old coins, why not invest in something else? Go out there and look for the gold coins that nobody else is buying. Once you have those, you can put them back on the market for a marked up price!

This begs the question, why are you trying to acquire gold? Do you want to turn around and sell it for a quick profit, or are you investing in the long term? Once you answer this question, then you'll be able to determine your strategy for investing in gold.

Gold Sovereign is a gold coin that was issued in 1489 for Henry of England. The Gold Sovereign is still in production today. The gold sovereign had a nominal value of one pound sterling, the coin was officially a piece of the bullion that had no mark of value on the coin.

The name "sovereign" derives from the enormous and impressive size and portraiture of the coin, in which showed the king's face and sitting on a throne. The back of the sovereign showed the Royal Coat of Arms on a shield by a Tudor double rose.

The original sovereigns were made of 23 carat gold and came in with a weight of 240 grains or also known as one half a troy ounce. The coins' purity was then reduced by Henry VIII to 22 carats, which now remains to be the gold coin standard in both England and the U.S

Half sovereigns, two pound dobule sovereigns and five pound quintuple sovereign coins were also made by Royal Mint. In 2009, The Royal Mint released a new coin, the quarter-sovereign. Unites, Laurels and guineas replaced the sovereigns after 1604. In 1817, the production of the sovereigns began again, which showcased a portrait of Saint George killing a dragon, which was engraved by Benedetto Pistrucci. British gold sovereigns still has this design today.

The removal of half sovereigns and worn sovereigns was a practice done by the Bank of England and to have them recoined. Coins were melted down into gold bars when sent to the U.S. when used as international payments between governments. This was due to the Federal regulations.

A lifespan of up to 15 years of a sovereign coin in circulations was estimated before it fell down to the least current weight. If a sovereign weighs 122.5 grams or more in England, it is considered legal tender. Only 1% of all gold sovereigns that were minted have been reported to be in collectible condition.

Large quantities of sovereigns were produced until the war of World World I. This is when the UK came off the gold standard. The only production of sovereigns were produced at Melbourne, Sydney, Perth, Bombay, Ottawa and Pretoria until 1932. Production resumed in 1957, which was to prevent the coin to be counterfeited in Italy and Syria.

In today's world there are many important coins that collectors love to get their hands on. One of the most popular types of coins is the British gold sovereign. These are coins that came into existence about 500 years ago and continue to be produced today. It's the British Gold Sovereign Coins' beauty and their interesting history that fascinates people.

British gold sovereign coins were first minted in 1489 to honor King Henry VII. When these coins were first produced they were 96% gold, which means they were 23 carats. However, Henry the VIII reduced the gold content to 92% or 22 carats. That's what's considered the gold standard (crown gold) today in both the United States and in England.

The actual weight of the British sovereign continued to be lowered more and more until it was locked in at just under a quarter of a Troy ounce (0.2354) in 1816. This remains to be the weight of a British gold sovereign coin today.

The British sovereign continues to be made today but it was discontinued for many years at a couple points in history. From 1604 to 1817 other coins were made in place of the British gold sovereign coins. The coins that were produced instead included guineas, Laurels, and Unites. Also, British gold sovereigns weren't produced between the years of 1933-1956.

Though sovereign coins have been minted over a billion times through out the last few centuries that number is actually misleading. This is because during Victorian Times the Bank of England would remove half sovereigns and worn sovereigns from circulation. They would then take these coins and make them into new coins. This means that there are far less British gold sovereigns in existence.

Also, these coins were often used by Britain to pay debts to other countries. Then when the other country received the sovereigns they would melt the coin down for the gold. So this also produced a result of far fewer coins existing.

What this means is that there are not very many sovereigns for collectors. In fact, it's estimated that only about 1% of coins that were produced are still in mint condition. The scarcity of the coins, along with their rich history, makes sovereign coins very valuable to many collectors.

Perhaps the most interesting part of their history is the use of the coins as "emergency money". During World War II fighter pilots - both British and American - carried sovereigns in case they were downed during battle. This piece of military history makes these sovereigns particularly valuable to some collectors.

One of the most famous gold coin series around the world is the British Sovereign. With a long and rich history, old British sovereigns are highly popular amongst numismatic collectors, while newer bullion sovereigns are popular among investors. The first coins in this series were minted in 1489 by King Henry VII of England. They had a nominal value of one pound sterling (20 shillings). But their primary use was as official bullion, so there is no marked face value on the coins.

The first gold sovereigns were 23 carat gold (96% percent pure) and contained 15.6 grams, or one half troy ounce, of gold. King Henry VIII, reduced their purity to 22 carats (92% pure), which defined the standard that is now referred to as "crown gold", a common standard for gold coins in both the UK and the US. The gold content was reduced several more times and fixed at 7.322 grams, or 0.2354 troy ounces, where it remains today.

The British Royal Mint has released various additional denominations of gold sovereigns, including half sovereigns with a nominal value of 10 shillings (a half pound sterling), double sovereigns with a nominal value of two pounds sterling, and quintuple sovereign coins with a nominal value of 5 pounds sterling. And in 2009 the Royal Mint for the first time has issued quarter sovereigns with a nominal value of 5 shillings. Obviously the nominal value has nothing to do with their real value in modern times.

Gold Sovereigns were produced in large numbers until World War I, when the British pound was removed from the gold standard. Until 1932, sovereigns were produced only at branch mints around the British Commonwealth, specifically in Melbourne, Sydney, Perth, Bombay, Ottawa, and Pretoria. Production was then halted until 1957, when gold sovereigns began to be minted once again, to prevent the debasing of the coins' value through counterfeiting.

Until 1982, sovereigns were minted as regular bullion, but from 1982 to 1999 were produced only as proof coins for collectors. Since 2000, Sovereigns have once again been minted as bullion coins, whose value depends mainly on their weight in gold, and not on numismatic prestige.

As mentioned earlier, British Gold Sovereign coins have a nominal value. But their real value is determined both by the current market price of their gold content plus variable numismatic value, which varies massively depending on the specific coin and buyer demand. Newly minted bullion coins should theoretically cost approximately the market value of their weight in gold plus a minimal premium, but older sovereigns can sell for much more. Historically, British Gold Sovereigns were regularly removed circulation by the Royal Mint and their gold content reminted into new coins. There were also buybacks of coins that had lost some of their weight in circulation, which were exchanged for full weight sovereigns. Because of this history of reminting, old British gold coins often have extraordinary numismatic value because of their rarity.

Collectors love sovereigns and they can have tremendous numismatic value because of their history and rarity. But these same strengths make old British sovereigns inappropriate for simple investors. Such investors would be better off staying away from numismatic coins and buying only bullion coins, whose value depends on their gold content rather than rarity or aesthetics. Bullion sovereigns minted in recent years would be appropriate. But even if buying bullion sovereigns as an investor, one potential pitfall of sovereigns is the unusual gold content of 7.322 grams, or 0.2354 ounces, which is written nowhere on the coin. This makes British sovereigns less liquid than a standard weighted one ounce gold coin, at least outside of the UK. They can probably be sold to most bullion dealers, because they will be familiar with them. But if there is ever an economic meltdown and you need immediate liquidity for daily transactions, sovereigns may not be widely recognized. They still make a solid investment, but as an emergency supply of real physical money, other one ounce coins are probably a better choice.

To learn more about a variety of gold coins visit http://the-gold-market.blogspot.com

British gold coins were minted as far back as 1489 when Henry VII issued the first 20 shilling gold coin, with his portrait on it. The minting was stopped when James I Ascended the throne in 1603.

The gold coin was replaced by guineas and unites from 1604 to 1816 but eventually returned during the reign of Gorge III in 1817, with his portrait on the coin. From the time of George up to the present time is considered as the modern sovereigns.

People who collect coins mostly collect the modern sovereigns, for the early sovereign coin are very expensive for most people to buy. If you are fond of collecting coins here is some information on how you could categorized your coin collection.

Collecting by reverse design. When you collect this type of coin it won't cost you much compare to the others, most gold sovereign has a reverse design of St. George killing a dragon. But there is a time through the years that a shield reverse was used, for the royalties have different kinds of shields.

George IV, William IV, and Victoria used different kinds of shields on their coins. While Elizabeth II only has a shield reverse in two years, the time when it was the 500th anniversary of the sovereign. In 2005 she used a different design of St George slaying a dragon on the reverse design.

Collecting by mint mark. Mint mark is a tiny letter that can be found either above the date or beneath the portrait. This mark indicated on where the coin was made. You'll find letters M, S, C, I, P, and SA. These letters stands for Melbourne, Sydney, Ottawa Canada, Bombay India, Perth, and Pretoria South Africa. From 1932 all sovereign are made in London, so if you cannot see any letter then that means it is made in London.

Collecting by date. This is the most expensive way of collecting coins, for there is some coin in some years that are expensive. This collection will include every year and every mint mark. It is expensive because some years produce rare coin such as the early sovereign coins. The older the sovereign coin the more expensive it becomes. There are only few collectors that can afford and have achieved this type of collecting.

Collecting by portrait variations. There are more than few different portraits on gold royalties during their reign. If you are fond of collecting British gold coins then this is also a good way of collecting. There are 4 portrait of Victoria, George VI had 1, and George V has 2, while Elizabeth has 5.

Collecting by monarch. This is the basic way of collecting sovereign coin, for it is within the resources of most collectors. Since royalties always had their portrait when minting a coin so it is easier to collect them.

British gold coins especially for the numismatic are fascinating and beautiful, but there are some of the coins are expensive especially those early sovereign. Also remember that generally speaking the older the coin the larger its value is.

Gordon Smith can help you find gold deals on British gold coins as well as other places to buy gold bullion.

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