It seems like forever ago that people had to walk into a gold store to look at gold and pick out what pieces they wanted. Most of the time people are looking to purchase gold coins for collections, but these days it's definitely more for investment purposes.

Gold's price is hovering around $955 right now and looks like it's only going higher. With prices this high, it's hard to justify buying an ounce of gold just because it's a beautiful piece. If you can afford to buy simply as a collector it is a great situation for you, but even as you admire your gold coin it will be hard to ignore the value it is gaining each passing day.

It's important to know what kind of gold coins you want to purchase as even though they may all look similar there could be severely contrasting values from coin to coin. Bullion is valued by the weight of the coin and this price is determined by the current international spot price. Bullion is bought specifically for its weight value. Numismatic or semi-numismatic coins are more collectors' pieces that, typically, have a higher market value than their bullion price. What makes up a numismatic coin is its metal value, perceived rarity, current demand, quality, market sentiment, general economic and other factors.

We all know the market can fluctuate greatly. Keep in mind that even though gold is one of the most stable investments, there are no guarantees that it will retain the value that the experts predict. If possible, find a company to deal with that will offer to buy back your coins at the current bid price at time of purchase. This offers you an exit strategy and a little extra peace of mind. This is a rare practice but one that only a reputable company will offer.

When you finally find a place you want to purchase gold coins from, it may be in your best interests to buy private bullion. Certain coins minted before 1933 provide tax and privacy advantages that many investors find extremely valuable. The spot price of gold remains the same, for these coins, but you can possibly save a good amount of money by purchasing this bullion.

For the last five years gold and silver have outperformed almost every other asset class. Gold gained 23% and silver returned an astonishing 46% in 2006 alone! Prominent analysts are predicting the precious metals bull markets to continue for years to come. When it comes to profit potential, privacy and protection gold and silver are essential to a healthy portfolio and there is no better time than now to purchase gold coins.