The main reason to buy gold is that bar unimaginable catastrophes – gold will increase in value. Not only that but at this time of horrendously low interest rates on savings accounts with banks and building societies, gold is almost certainly better than money in the bank.

Yes, the price of gold has its ups and downs – on a daily basis! – but the overall trend during the past 10 years has been ever upward. To such an extent that gold prices per gram are almost 500% higher than they were 10 years ago. There was a period in the early 1980’s when there was an incredible, but short-lived, gold boom, but prices now are substantially higher than they were even then.

How to Buy Gold

I am only going to talk about actual physical gold here: gold bullion or bars, gold coins and gold jewellery. This is by far the easiest way for the small investor to stash some money away in gold.

My top 2 places to buy gold in the UK, may surprise you!

My number 1 choice of where to buy gold is eBay. You may have to hunt to find the bargains but it is still possible to find pieces of gold jewellery selling on eBay for less than their scrap gold value. It is also probably the cheapest place to buy gold coins such as Sovereigns, half Sovereigns and Krugerrands.

You may think you are taking a risk by buying on eBay but in reality there is very little risk involved. If you pay for an item via PayPal you will get your money back if you do not receive the goods or if they are not as described. To be extra secure use your credit card via PayPal then you have reduced the risk to zero.

For example at the moment (July 2011) a standard full gold sovereign from the 20th century (this does not include proof issues) will cost you £220-£240 whereas a brand new one from the Royal Mint costs £269 for a 2010 issue and £285 for 2011. The scrap value of the actual 22ct gold content of the sovereign coin (7.98g) is around £218. A gold coin bought on eBay is unlikely to be in mint condition but this makes little difference to the resale value of modern coins. It is only when you look at Victorian or older gold coins that condition is a vital element of value as they tend to be priced well above scrap.

Of course, there are a lot of people willing to buy scrap gold and gold jewellery on eBay right now but there are still ways for you to pick up pieces at bargain prices. It is pointless for the smaller buyer to look at job lots of scrap gold which are advertised as such – you will get outbid by the more experienced buyers. Instead look for single gold rings from inexperienced sellers that are badly described. Often rings that are worn, bent, have personal names, initials or engraving or are just plain ugly, sell for low prices – sometimes less than scrap value.

You can also frequently pick up bargains if you bid on rings containing stones – the gold buyers usually stay away from these and if you can find an unattractive engagement ring from the 1970s you are more than likely on to a winner. Just make sure you have a cheap but good hallmarks book and a Jewelers Loupe so that you can check the gold hallmarks when your purchases arrive.

My second choice of where to buy gold in the UK is even more likely to shock you – Argos!

Argos buys gold jewellery in huge quantities and frequently have special offers where they sell unpopular pieces at way below the normal retail price. It is possible to buy items of discounted gold jewellery from Argos at only slightly above the scrap value of the gold.

When to Sell Gold

The answer to this question is only when you absolutely have to or when you have planned to. As I have said before, gold is better than money in the bank and the longer you can hold onto it they more valuable it is likely to become.

Having said that buying gold is a fantastic way to save for something. It is easy to buy and even easier to sell. Just imagine what a great investment a gold sovereign coin bought for a baby every year on their birthdays and at Christmas would be? They wouldn’t have to worry about a student loan when it came time for them to go to University or it could even fund a car purchase or a deposit on a flat.

Maybe you want to save for your retirement or to take that dream cruise in a few years time. Just buy a 9ct gold chain from Argos or eBay then every month buy a gold ring and hang it on the chain. In a short time you will have a valuable nest egg.

Invest in Gold with Gold Bullion, Gold Bars or Gold Coins

You may find it a more attractive prospect to invest in gold by buying gold bullion or bars or gold coins. Ordinary gold jewellery in the UK is commonly 9 carat gold, but gold coins and bars will usually be a much higher quality – 22 carat or pure gold 24 carat. These are therefore far more valuable per gram.

Again, you can pay a premium price for premium quality or you can go for the cheaper option from eBay.

Buying gold as an investment or a savings plan is as safe as (or even safer than) houses.

Indeed, for those with the acumen and capital to buy gold throughout 2009 and the early months of 2010, their investments could reap solid rewards. For hoarders and traders, there is an expectation for the price to peak through December, therefore providing the optimum time to cash in, both in terms of the gold’s market value and the level of demand present within the marketplace. The rise in the price of gold is also reflected in the average unit costs of 14, 18 and 22 carat scrap items, with an increase of £3.00 per range between April and November 2010.

Specialist Items And Investing In Gold

In terms of buying gold for an incremental investment, gold coins and bar format gold bullion are two of the most popular choices. These items are very collectable, and there are many individuals who will purchase gold privately for a negotiated fee (in line with the specifications and overall value of gold). Such investments have historically proved popular, as fluctuations in the price of gold are not as drastic or changeable as other investment commodities, and this trend has continued through 2010. Coins and bullion are an ideal source of financial insurance, as they will also retain a value within the market.

Gold Bullion And Proof Coins

There are subtle differences between gold bullion coins and gold proof coins however, which are significant in terms of their cost and value when considering selling gold. Gold bullion coins are valued and costed strictly on the levels of gold and precious metal they contain, whereas gold proof coins are designed and produced as specific collector items, so can carry additional value depending on the individual theme of the coin and the collector in question. All gold coins, whether they be classic or contemporary items, are very popular amongst private collectors and investors alike. These are viewed a being similar to currency rather than a commodity, as whilst its value and cost will dip and soar, gold and gold coins can never be rendered worthless or without value.

One of the most popular and valuable gold bullion coins on the market is the South African Krugerrand. There are coins available between 1967 (the year of the Krugerrands inception) and the current day, at an ever steady average cost of £860.00 (with an estimated gold cost of £800 per ounce). They are not aesthetically pleasing and nor were they ever designed to be, but they remain popular due to their predictable and reliable value over a distinct period of time. Another reason for its demand amongst investors and collectors is that it is an example of legal tender in South Africa, the Krugerrand can be imported into many countries world wide without the charge of import tax, VAT or duty.

A more economical and historic bullion coin renowned throughout the gold industry is the sovereign. The demand for these coins has experienced a sharp increase through the summer and peaked in October 2010, as collectors clamour to purchase these at the vastly reduced cost as compared to the Krugerrands. The sovereign range of rings is the most competitively priced within the gold bullion market, with a vastly superior profit to be made on resale as opposed to other coins. In addition to this, sovereigns are exempt from the burden of Capital Gains Tax in the UK, and are also a far more attractive and stylish design of coin for collectors. Their historical merit is also a significant consideration to a discerning collector.

Gold Bullion Bars

The popularity of physical gold bullion as an investment items was maintained through 2010, due in part to the global financial uncertainty and the fact the physical bullion does not depend on a suppliers pledge to pay. This removes a huge element of risk present in other services and commodities, giving an investor insurances as to the security of his capital. In addition to the bullion coins, gold bullion can be purchased in single bar format, and there are a surprising range of designs and choices available to the consumer. Quite often, however, if a specific type of gold bullion bar is required then the supplier will need to be informed as many simply sell bullion as an investment rather than a specific, collectable item.

The most in demand and commonly requested are Swiss gold bullion bars. Switzerland is renowned for its gold and banking, but many of its physical bars are rarer items. An example is the Swiss Volksbank bars, which are a rare commodity especially in the 1000 gram mould, and require much research to source from suppliers. Bars from the famous UBS Union Bank in Switzerland are also popular items that are often requested, due to the renowned name and the distinctive shape and dimensions, and these bars are also available in sizes ranging from 100 to 500 grams.

Continued Growth

A review of the price of gold in 2010 would have to conclude that, despite fluctuating financial fortunes in various national economies, gold has managed to maintain a steady inflation in unit cost and value across all its designs and formats. Whether scrap gold, gold bullion or gold coins, the steady increase in value and price is an indication of the special properties that gold as a material holds as an investment opportunity, and the gold industry is predicted to see further growth throughout 2011. It is easily sourced, is not susceptible to the risk of failure to supply or to pay, and due to government borrowing sees its value increase through times of economical hardship. If 2010 has proved anything, it is that there is no more reliable physical investment of capital than one that is made in gold.

In these gloomy economic times, more folk are looking at gold as a safer asset class than stocks and mutual funds. Investing a portion of a balanced portfolio in silver and gold could act as a hedge against inflation. Precious metals are normally not as susceptible to the same gyrations as the bond and stock markets. Typically, gold is not correlated to the stockmarket or the bondmarket. A portfolio of gold coins might add stability and value to your portfolio.

One of the best ways for small investors to invest in gold is with gold coins. Gold coins are more often than not worth more compared to gold bullion bars. This is {because gold coins are more expensive to make than gold bullion bars. One benefit of gold bullion coins over gold bars is gold coins tend to build more coin collecting value over time. The reason for this is most gold coins are struck with the year on it. The older the gold coin more often than not the more coin collecting value it will build up, if it is maintained in a good condition.

Here’s a few of the most trendy gold bullion coins

American Gold Eagles

The American Eagle gold bullion coin was first produced by the United States Mint in 1986 being authorized by 1985′s Gold Bullion Coin Act. They are guaranteed by the United States government to contain the stated amount of gold in troy ounces. Legally the gold in these coins must come from sources in the U.S. It is backed by the U.S. Mint, and authorized by Congress for content and weight. It is available in 1/10 troy ounce, quarter troy ounce, 1/2 troy ounce and 1 troy ounce denominations.

The reverse side features a female eagle and chicks in a nest, and above them the male holding an olive branch. The other design features Lady Liberty bearing a torch in her right hand and an olive branch in her left, and in the left background, the Capitol building.

The United States Mint also mints a proof version for numismatists. Most American Eagle gold bullion coins are manufactured at the West Point Mint in New York state and bear a W mark under the date of issue. As with all other gold coin, their actual market prices varies from day to day based on the latest spot price of gold.

Buy Krugerrands

The Krugerrand was the world’s first gold bullion coin, being minted in 1967. The gold South African Krugerrand was named after the last president of the old South African Republic, Paul Kruger. The gold South African Krugerrand coin was also the first gold coin that contains precisely one ounce (33.93 grams) of 22 carat gold. South African Krugerrand coins don’t have any monetary value on them. Krugerrand prices are based upon the current value of one troy ounceof gold.

The Krugerrand’s name from a combination of the last President of the old South African republic, Paul Kruger’s surname, and the Rand, which is South Africa’s currency. The obverse of the Krugerrand has a portrait of Kruger. The other side has a springbok, a kind of gazelle. Springboks are South Africa’s national animal.

Buy Gold Maple Leaf

Canada’s Gold Maple Leaf coin was first minted in 1979 by the R.C.M. (Royal Canadian Mint). It is one of the purest gold bullion coins in the world, with a gold content of 24k, Some singular releases contain gold mined entirely in Canada with virtually no base metals at all. From 1988 on, Maple Leaf coins have also been created in .9995 fine platinum, and .9999 fine silver. In 2005 a .9995 fine palladium Maple Leaf 1 troy ounce coin was introduced.

It is available in one twentieth troy ounce, a tenth troy oz, a quarter troy ounce, a half ounce, and 1 troy ounce denominations. It is guaranteed by the R.C.M. to contain the stated amount (in troy ounces) of 99.999% pure 24k gold. The coins have legal tender status in Canada, with face values of C$1, C$5, C$10, C$20 and C$50. These are much lower than their market value, and are symbolic. All denominations are the same in design, except for the markings on the obverse and reverse sides that specify the weight and face value of the coin.

The R.C.M. manufactured a Gold Maple Leaf bullion coin with a face value of C$1,000,000 on 3 May 2007. At the time the actual gold content was worth over $2 million. It weighs 100 kilograms, is 50 cm in diameter, 3 cm thick, with a purity of 99.999%|With a purity of .99999. it is 3 cm thick, 50 cm in diameter}. It was a promotional showpiece to advertise the R.C.M.’s new line of .99999 pure 1 troy oz gold Maple Leaf bullion coins.

Buy Australian Gold Nugget

Sometimes nicknamed Gold Kangaroos, the Australian Gold Nugget is a gold coin minted by the Perth Mint. These coins have been manufactured in a variety of denominations of 24 carat gold. They are legal tender in Australia and are among a a small number of legal tender gold coins to alter their design each year, along with Chinese Gold Pandas. This, and their limited yearly production may help to inflate their numismatic value with the passage of time.

The Gold Nugget was introduced in 1986 by the Western Australian government owned corporation, the Gold Corpration. From 1986 to 1989, the reverse of these gold coins pictured a number of Australian gold nuggets. With the 1989 proof edition, the design was altered to show kangaroos, the globally recognized national animal of Australia.

In 1991, 2 ounce, 10 ounce, and 1 kilo sizes were introduced. They were introduced with the intention of keeping premiums low using economies of scale, and are among the biggest gold bullion coins ever minted. The face values on these large coins were lowered to keep them proportionate to the 1 troy ounce coin. The reverse of the coins does not alter every 12 months like the lower denominations; the kangaroo design is utilized every year.

Chinese Gold Pandas

The Chinese Gold Panda bullion coin is produced by the official mint of China, and was first manufactured in 1982. It comes in a twentieth of an ounce, 1/10 of a troy ounce, 1/4 of an ounce, 1/2 of an ounce, 1 troy ounce, 5 troy ounce and twelve troy ounce denominations. Panda America is an official distributor in the United States of America, and in China, the official distributor for gold Panda bullion coins is the China Gold Coin Corporation (C.G.C.C.).

The obverse side of the Chinese Gold Panda coin has Chinese letters on top saying Zhonghua Renmin Gongheguo (People’s Republic of China). Under that is a picture of the Temple of Heaven, and at the bottom, the year of issue. For commemorative releases, the topic will be evident here too. The reverse side features portraits of pandas, which have been altered every year with the exception of 2001 to 2002.

Another advantage to investing in gold bullion coins is its ease to sell. Gold bullion coins are one of the easiest assets to liquidate. The reason why gold bullion coins are easy to sell is gold coins and gold bars usually have a standard weight and purity impressed on it. If an investor is not familiar with a coin, they can tell how much gold and what purity they are buying. Investing in gold bullion coins has its benefits; some of the advantages are difficult to find in other assets. This is what makes gold bullion coins among the best assets available.

Article Source: http://www.articlesbase.com/wealth-building-articles/buy-gold-bullion-coins-an-easy-method-to-invest-in-gold-1531646.html

About the Author:

Gold has risen in price substantially over the last few years. This is nothing compared to the rise the smart money is predicting will come to pass over the next couple of years. Don’t miss the boat. Get in now before it’s too late, and buy gold bullion coins now through The Precious Metal Shop

With gold prices reaching a new high again this week and further rises anticipated, investors are scrambling to buy gold coins, bullion, bars or whatever gold they can get their hands on.

Over a year ago in July 2008 the Daily Telegraph reported:

“Tens of thousands of investors have rushed to buy gold from bullion dealers over the past year, during which the gold price has broken through the $1,000 barrier on occasions.”

Danske Research Team reported yesterday

“Gold hit $1,226”

So the investors who were rushing to buy gold 18 months ago have seen their investments rise by over 22%. Not bad considering that typical investment accounts with banks are paying around 1.5%.

Another recent report from the Financial Times

In Ghana – “Investors’ scurry for safety has pushed the gold price to all-time highs above $1,100 an ounce, sending mining companies, small-scale artisans and illicit gold-diggers scrambling for drills and picks.”

On a sidenote, if you are in need of cash and you have any gold to sell this could be a good time to cash in.

Of course, the weakness of the dollar is also contributing to the soaring gold prices, but it doesn’t look as if the upward trend is going to stop anytime soon.

Gold Prices Last 10 Years

The market price quoted today on cooksongold.com for 1kg of gold is £23,521.

At the moment on eBay a 250g gold bullion bar sold for £6,100 and 1oz krugerrands are selling for around £740-£820 depending on age and condition.

Another site – bullionbypost.co.uk is selling gold bullion at slightly cheaper prices than you can get it for on eBay. A 1 ounce bullion bar costs £762; 100g is £2,421 and if you want something really weighty to put in a Christmas stocking a 1 kilogram bar is £23,948.