No matter how you slice it, melt it or pound it, gold has always been a stable investment. By and large, if you invest correctly, you will always receive a return on gold investments.

Investing in gold coins is one of the best methods of acquiring gold but it requires some knowledge and basic understanding. A little historical information could help lend perspective to the viability of gold investing. I'll try to keep this brief, relative and interesting.

The economic down turn we're experiencing and talk of recession and even depression has inspired a rush for gold. Whether your aim is to diversify your financial assets, allay bailout anxiety or simply get your hands on some hard cash, you need advice that's golden.

People and cultures have sought to possess gold for millenniums. As far back as 4000 BC, in what is known today as Eastern Europe, ancient civilizations mined for gold. It was mined in the Transylvanian Alps to make jewelry and decorative objects. Later came the Egyptians, Babylonians, the Byzantine Empire, Charlemagne, Alexander the Great, Marco Polo, King Ferdinand of Spain, Great Britain, and ultimately the United States, all of whom had an insatiable hunger for gold.

Gold has been used as currency for as many years. From weighted gold shekels weighing 11.3 grams, to shillings, pounds, and pence, we've used measures of gold to transact business for thousands of years. The Romans began issuing coins in 50BC, but some of the first standardized gold coins were Ducats, issued in Venice in 1284 AD and the Florin from Britain issued in the same year, followed by the Noble, Angel, Crown, and Guinea. Later, in 1817, Britain would introduce the Sovereign, a small gold coin valued at one pound sterling. The first US gold coin was struck by Ephraim Brasher, a goldsmith in 1787.

This all happened prior to the first US gold rush in Little Meadow Creak, North Carolina in 1803. Starting in 1828, the US Mint in Philadelphia began to produce and supply all gold coins used for currency in the United States. In 1837 the weight of gold in the US dollar was lessened to 23.22 grains so that one fine troy ounce of gold is valued at 20.67, hence the twenty dollar gold piece.

Believe it or not, in 1933, Franklin Roosevelt prohibited the holding of all gold coins, bullion, and certificates in an effort to alleviate banking panic caused by the stock market crash that sparked the great depression. The following year, The Gold Reserve Act of 1934 gave the government permanent title to all monetary gold and halted the minting of gold coins. It also allowed for gold certificates to be held only the Federal Reserve Banks, putting the U.S. on a limited gold bullion standard, under which redemption of gold would be restricted to dollars held by foreign central banks and licensed private users. In so doing, President Roosevelt reduced the dollar by increasing the price of gold to 35.00 per ounce.

At one point all US Treasury notes were backed up to 40% with gold. Why? The answer is simple, because without gold backing, treasury notes are worthless paper.

Gold coins are a wonderful way to invest in gold. Your investment will increase from the rise in gold and the rarity of the particular coin you purchase. Many gold coins are worth twice as much as their gold value because of the rarity of the coin itself.

American Eagle gold coins are considered a highly liquid investment because their accuracy of weight and purity are guaranteed by the United States Mint. Gold Eagle coins are very popular and they come in different sizes. Obtaining an American Gold Eagle coin or coins is very easy and they are an investment worth considering.

Prior to investing, you should consider your portfolio. You don't want to pour all of your savings or investments in gold or precious metals. While gold will almost always hold its value and virtually never plummets to near nothing like stocks, the price of gold does fluctuate and may decrease in value to a price lower than you where you originally bought it. The value might hover there for a considerable amount of time. Financial experts suggest having no more than five percent of your portfolio in gold or other precious metals.

You should consider the alternatives. You can buy gold like you buy stocks through ETF's, and it is liquid for the most part. However, gold still doesn't offer some of the flexibility that gold coins do. American Eagle gold coins can be bought and sold at coin dealers around the world for whatever gold is selling for at the time, which provides a modicum of privacy for the investor. You might consider purchasing other gold coins as well. Canadian maple leaf gold coins are 99 percent pure gold and are considered very pure by gold coin standards. American Eagle gold coins are only 91.67 percent, or 22 karat to prevent wear and scratches that happen to coins that are 99 percent gold, and they contain silver and copper as well.

Prior to purchasing gold coins, I suggest you identify the current market price of gold. This can be easily identified using the internet. After you identify the current price of gold, you will be better prepared to determine how many coins you wish to purchase.

You may want to consider contacting a dealer online or seek out a trustworthy local dealer. You may actually find better prices utilizing a local dealer rather than using a large firm, but a local dealer may not actually have the coins in their inventory. In larger cities coin shops are more plentiful. Most coin shops carry an adequate inventory of gold American Eagle coins. If they don't, you can usually get the coin dealer to purchase the coins for you and you can pick them up a later.

Another tip is to search your local pawn shops. Pawn shops are historically known for buying anything gold. You'll have a good chance of finding gold American Eagle coins through your local pawn shops. I'd recommend making certain the coin is real gold and that you are not paying a premium for it. Verify coin pricing using the internet or current coin publications.

You can also buy gold coins directly from the mint. The US mint maintains a website and they sell new coins online. You can usually pick up American Eagle coins on the mint website for the exact same price coin dealers pay for them.

Lastly, you can buy from auction sites and estate liquidations. Auction sites and houses are a great source for gold coins because they are constantly bought and sold as the result of estate liquidations. Please be sure to verify the credentials of the auctioneer or dealer. Make sure you are purchasing from a reputable auctioneer or dealer who is familiar with the sale of gold coins. Be aware that buyers and sellers are required to pay additional premiums levied by auctioneers or auction houses. Buyer's premiums generally range from ten to fifteen percent, so make sure you factor the premium before you bid. Seller's premiums are generally negotiated on the front end with the auctioneer and generally range from 25 percent to 50 percent based on the amount of preparation, services, advertising etc. required on the part of the auctioneer.

If you plan on purchasing more rare or collectible coins please get the coins appraised by an independent appraiser prior to finalizing the sale. You may want to consider buying rare gold coins since the collector's value of the coins can increase the inherent value of the gold. Buying rare coins can be a risky venture if you are not knowledgeable, so I'll emphasize again, make absolutely certain you are purchasing from a reputable dealer.

About the Author:
My name is Phil Swindle I own and operate several successful businesses including InfoPro Concepts, Inc. and OfficeAnything.com please feel free to contact me directly or visit our office furniture website at http://www.officeanything.com

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