With gold coins being as expensive as they are now, there are a few things you should watch for when purchasing.

1. Whether you are buying from a bricks and mortar dealer or buying online through a website or and auction site like EBay, check the reliability of the dealer first. For a store, at least check with the local Better Business Bureau. For an EBay auction, check the seller's feedback rating. If it's very low, or there are many negatives, think twice (and a third time) before spending a large sum with them. Even if the feedback seems good, look closer, some people will buy or sell a number of very inexpensive items to build up their ratings, then jump in selling big ticket items.

2. One of the biggest problems buying collectible gold coins is grading. Your idea of an MS65 may be different than the dealer's. Many coins have a huge gap in value between grades. Avoid the issue by buying only coins that have been graded by one of the third party grading services. Make sure that you only accept the major services (ANACS, NCG, PCGS, NCS, ICG) grading, there are some lesser known whose grading may be suspect.

3. Make sure the seller has a return policy that will allow you a refund if you are not satisfied with the coin. This should apply to both on-line and off-line dealers.

4. Buy the scarcest coin in the best condition that you can afford. Many collectible gold coins sell near the melt price of gold because there are more than enough around to cover demand. This is especially true in the lower grades. When gold increases or decreases in value, these will follow by a like percentage. But the higher the grade, the lower the population and demand will push up the price rather than just following the price of gold.

5. Try to invest regularly. As with the stock market, it's very difficult to call the tops and bottoms of the coin market. Over the course of time, you will fare better by dollar cost averaging than investing a large amount at one time.