The festive time is here again, and you must be waiting for good deals to purchase gold on auspicious days. Buying gold is not just a financial decision but also an emotional one for Indian households. Often, we miss out on key things when we decide to purchase gold. It is not just the discount or offers that we must look at but there are many factors you must consider before purchasing the precious metal.
You must know that there are different forms of gold available, such as coins, bars, and jewellery. Each has its advantages and disadvantages. There are several important factors to consider before buying gold. Here are some of the key things to keep in mind:
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Purity Check
Gold is measured in karats (K), with 24K being pure gold. Jewellery is often sold in lower karatages, like 22K or 18K, which have varying levels of purity. Ensure you understand the purity of the gold you are buying.
Adhil Shetty, CEO, Bankbazaar.com, says, “When buying gold, make sure to ask for the purity of the gold and check for the BIS hallmark. The BIS hallmark is a government certification that ensures that the gold meets the prescribed purity standards.”
Hallmarking
Look for BIS (Bureau of Indian Standards) hallmarked jewellery. This certification ensures the purity and authenticity of the gold, and it’s important for quality assurance.
Market Price
Stay updated on the current market price of gold (often referred to as the “gold rate”). Gold prices fluctuate daily due to global market conditions and currency exchange rates. Buy when prices are favourable.
Making Charges
Jewellers often charge making charges for crafting jewellery. These can vary significantly from one jeweller to another. Compare making charges before making a purchase.
Shetty explains, “Making charges are the labour costs associated with making gold jewellery. Making charges can vary depending on the complexity of the design and the jeweller. It is important to negotiate the making charges before making a purchase.”
Weight and Measurement
Ensure that you are getting the correct weight and measurements of the gold you are buying. Jewellery is typically sold by weight, and you should verify this with a trusted jeweller.
Seller Verification
Choose a reputable and established jeweller. Ask for recommendations from friends and family and read online reviews. Trustworthy sellers are essential to avoid counterfeit or substandard products.
Billing and Receipts
Bills are very important as this helps when you decide to sell your gold or take a loan on it. Always ask for a detailed invoice and receipt when purchasing gold. This should include the purity, weight, making charges, and the total cost.
Storage and Safety
Consider how you will store your gold safely. Investing in a secure locker or a bank’s safe deposit box is a good idea, especially if you are buying a significant amount.
Resale Value
Keep in mind that you may want to sell your gold in the future. Understand the resale value and be aware that you might not get the full market price when selling to a jeweller.
Tax Implications
Be aware of any applicable taxes when buying gold. In India, there is a Goods and Services Tax (GST) on gold.
Quality and Design
If you are buying gold jewellery, pay attention to the design and craftsmanship. Choose a design that you love and will wear comfortably.
Buying gold is an investment and a symbol of wealth in Indian culture. Taking the time to research and make informed decisions can help ensure that your gold purchase meets your financial and personal objectives.
