Many individuals choose to purchase gold bullion coins as an investment. They are banking on the fact that the value of gold will continue to increase. Others choose to use gold as insurance. This is due to the downturn in the global economy and a shaky stock market. Since the government has the option of printing money without having it affect the price of gold, getting in on the gold game is a smart idea because this means gold will not lose its’ value in relation to the US dollar. If you wish to invest in gold bullion coins, there are many ways to do so. You have the option of purchasing gold locally or over the Internet. Ensure that you are making your purchase from a reputable dealer no matter which way you choose to go.

Gold bars are sold in weights of 1 ounce or higher by gold dealers. The only drawback is that gold bars are expensive to buy because of their larger size and have to be physically stored in a safe location. Gold bullion coins have more mobility and are easy to liquidate or sell when the investor in gold is ready to do so. Gold coins are by far the more popular choice of investment with the individual investor in gold in the gold market today. With so many different gold bullion coins available on the market, the choice of what type, weight and denomination of coin to invest in is wide and can be specific to each individual investor.

Gold Canadian Maple Leaf bullion coins are a great way to invest. Many consider the Canadian Maple Leaf to be one of the world’s most beautiful Gold coins. Each Gold Maple Leaf coin is legal tender, guaranteed by the Canadian government for its weight and .9999 fine purity. Many advisors and gold market analyst are commenting on the parallel of the current markets in Europe to the liquidity crisis that occurred in 2008 with U.S. markets and the Lehman collapse. In the 2008 crisis, Gold provided a source of liquidity as investors sold off some of their gold holdings to meet their requirements.

Gold traded at US$1,745/oz this afternoon, down US$4 from Wednesday’s close. Spot Gold prices traded slightly higher by 0.1 percent today mainly on the back of a weaker dollar that made dollar-denominated commodities cheaper for the holders of other currencies.

After reaching its correction-low of $1,532 per troy ounce, the gold price has recovered in recent weeks, reaching close to $1,770 per troy ounce in early trading today. Gold prices remain well supported by “easy” central bank policies. Last week saw the European Central Bank lowering its key interest rate by 0.25%, while officials at the US Federal Reserve are dropping hints about new bond purchases by the Fed. Should the Fed decide to start a third round of quantitative easing (QE), this will be of great benefit to gold, silver and other commodities.

Gold prices gained nearly 1 percent on Monday after Greece’s politicians sealed a deal to form a coalition government, while continued uncertainty about resolving the zone’s debt crisis supported safe-haven demand in gold bullion.

Gold Investors should be aware that gold bullion coins trade at a small premium over the actual spot gold price because these coins are minted by sovereign governments and the government charges a fabrication fee. The spot gold price is based on 100 ounce or larger .999 fine gold bars. Gold bullion coins ranging from 1/10 oz to one ounces trade at 3% to 15% premium over spot, based on the coin, it’s size (for example, 1/10th, 1/4th, 1/2 or 1 full ounce), and the quantity being purchased. Many major gold bullion dealers typically will sell a single, one-ounce gold American Eagle gold coin at approximately four to five percent over the current spot/melt value (and purchase them from customers at about two percent less than their selling price.) American Eagles, Canadian Maple leafs and South African Krugerrands are some of the most popular gold bullion coins. Gold coin investors should contact several creditable precious metal dealers and shop for the best price.

Gold advanced to a fresh monthly high of $1768/oz as market participants diversified away from the U.S. dollar as the Federal Reserve casts a weakened outlook for the world’s largest economy. Indeed, the Fed lowered its forecast for growth and inflation after maintaining its current policy. There is speculation of another round of quantitative easing as the slowing recovery heightens the risk of a double-dip recession. As Gold appear to be trading within an upward trending channel, spot prices should push higher over the following week. In turn, the precious metal may climb back above $1800/oz next week.

When it comes to gold in the market today, U.S. equities underperform when the dollar depreciates but investments such as commodities and real estate, which are positively correlated with gold-price movements, are often considered inflation hedges. Bonds and most stocks, however, are vulnerable to inflation because their returns tend to be negatively coupled with gold. For purposes of designing portfolios that are insured against inflation, gold plays a double role. Looking at the gold price movements with those of any investment portfolio will serve as an objective measure of the vulnerability of the portfolio to the dollar’s depreciation. Gold such gold bullion coins and gold bars can also be an asset that can be included in a portfolio of stocks or bonds to reduce its vulnerability. You can also include gold in your retirement fund for later on in life.

Gold prices went up Thursday on speculation that a Greek referendum is dead, prime minister Papandreou is out and as the European Central Bank eased monetary policy. Gold will continue to be at the mercy of currency fluctuations as a weaker euro means a stronger dollar, which makes gold more expensive to buy in other currencies, and vice versa. Any kind of pending disaster in Europe might also trigger a flight to safety into gold but also might force liquidation as investors are forced to cover losses in other assets.