Investing in gold coins

It is absolutely no secret that we are living in troubled and uncertain times. An indication of this is all the recent turmoil in the global stock markets. Gold, especially gold coins is one of the safer and more reliable forms of investment, which has been a recent choice by the more prudent investors. A bumper year has been enjoyed by gold. This is seen through investors purchasing stocks through the prices recently hitting $1000 an ounce. In the first quarter alone, the total investment in gold rose by 163% as per the data of the World Gold Council.

Buying gold coins like Sovereigns and Krugerrands is one of the most popular and favored ways to invest in gold. One of the items like Krugerand coins are individually 1oz of pure gold. But, they and other types of gold coins are now available from hugely diverse places like the online auction site EBay. It is openly suggested to investors by a large majority of industry commentators to purchase stocks of gold coins, as long term and safe investments.

Now the question arises as to what factors should you consider when purchasing gold coins as a form of investment?

Comparing the percentage over the standard market price for each type of gold coin is the main factor.

Gold Sovereigns

It is expert opinion that Sovereigns are more often than not worth paying the slightly extra premium. Their intense attractiveness to the majority of investors is their small size and historic significance. They have a tendency to be better known than other gold coins like for instance, Krugerrand coins. You also have the added advantage of being exempt from Capital Gains Tax if you are a resident of the UK. It is suggested that they are a better l9ng term buy if you can buy sovereigns within 2% of the price of Krugerrands coins.

Krugerrand Coins

The best known of all the modern gold bullion coins is the Krugerrand coins. They are generally the most commonly available and best priced coins of their type on the market. The icing on the cake is that they are made from one ounce of solid gold. Krugerrands do not look as nice or are not as much historically significant as their counterpart, the Sovereigns. Nevertheless, they are a solid investment and are extremely popular. They make up for in high production quality whatever they lack in terms of good appearances. Also, they are a cost effective and available means of for small investors to buy gold.