Gold coins are a popular choice for investors who wish to take advantage of the wealth protecting properties of physically owning gold. The recent record highs of the gold price may have many people wondering if gold has topped-out. It opened the year near all time highs and has seen corrections in the first month of 2011, but many indicators show that there is still a lot of room for growth and several experts insist that gold is still a necessary addition to any investment portfolio. Many investors consider now a great time to enter the market or increase holdings.

Global demand for gold is higher than ever as nations such as China and India are seeing a tremendous increase in gold purchases. Their governments are increasing their precious metal reserves and purchases by citizens are also on the rise. Even in Europe, gold delivery has been experiencing delays due to the extraordinary demand for physical ownership.

People who are concerned with protecting their savings are turning to gold coins as an easy to own commodity that has traditionally been a valued storehouse for wealth. Concerns about inflation have investors worldwide trading their paper currency in for a material of value. The value of the dollar typically impacts the price of gold. Recent strength in the dollar has led many investors to take advantage of the high price of gold and realize profits by selling some of their holdings. Continued monetary policies that increase the money supply to pay down national debt and prop up stock markets and central banks are unsustainable and will likely lead to the dollar resuming its declining posture. For this reason, owning gold coins, bars or other physical bullion can help protect wealth from rising inflation that threatens to debase savings and retirement accounts.

These considerations have many experts pointing to excellent performance in gold in the years to come. Quick injections of stimulus into the financial system provides short term growth, but brings tremendous risks of inflation. Recent statements by the Federal Reserve chairman Ben Bernanke has suggested that continued stimulus may be required to revive the American economy. Another round of quantitative easement stimulus would further increase the potential for out of control inflation.

Gold coins provide a convenient way to help secure the value of their savings. The damages of increasing supply of fiat currency is already becoming apparent with rising food costs sparking riots across the globe. Investors can take advantage of the corrections being experienced in the gold price and find a great entry point into the protective qualities of owning gold.