8 things to know before buying gold
8 Things to know before buying Gold
Gold has been an asset since the old days. It is said that gold is a type of an asset that keeps on growing at a rate of 62% in the coming future. For instance, The rate of 10 grams 24 carat gold was RS31000 back in 2018 but had a boom in the price to RS 52000. The growth rate is more than 50% over here.
There is a wide culture of buying gold within the Indians. We buy gold at weddings, while gifting a newborn, during festivals and programmes and what not. There is an interesting fact that says 11% of the entire gold in the world is within the Indian women as the Indian culture believes that the gold is a symbol of prosperity.
But gold buying is a process inorder to get the best and pure gold from the market. Gold purchasing can be tricky but knowing the things to check before buying gold and gold jewellery will help. In this blog, We discuss about What to know before buying gold.
Factors to know during gold purchasing
- Price of the gold jewellery: The price of the gold depends upon the purity of the gold as well as the type of alloy used to mix with the gold during its manufacture. Not to forget, the number of labour inputs is also a factor in deciding the price of the gold. The best way is to compare the prices of the gold to get the market rate. Gold investing is always smart but it is advisable to invest in gold via known brands.
- Purity of the gold jewellery: Purity of the gold during the purchase plays a major role as pure gold never loses its touch or value. 24 karat gold is said to be 99.9% pure. The quality goes lesser as you go to 22 karat, 18 karat and so on. Investing or purchasing gold without prior knowledge about the purity of the substance is to be avoided. Another way of finding the purity of the gold is to look for the hallmark on the item.
- Making charges of the gold: Apart from the gold, there is a making charge for every gold jewellery item. You should know before buying gold jewellery that the making charges should be fixed. There are places where they make charges of gold inconveniently. The gold purchasing becomes cheaper when buying gold items of fixed making charges.
- Difference between man-made and machine-made gold jewellery items: During the old time, the goldsmiths were common to make gold jewellery items on demand. But in the era of mass production, almost all the gold jewellery items that are available for purchase are machine-made. The price of the machine-made items are cheaper when compared to the price of the man-made golden jewellery items.
- Making sure of the weight of the gold jewellery: The gold is usually sold in weights. Some gold jewellery items come with a piece of diamond or any stone on it. Here is the important thing you should know before buying gold, you should be paying only for the weight of the gold and not for the weight of the whole jewellery item including the stones. Oftentimes, people end up paying for the entire item and not just gold.
- Best time to buy gold: As we Indians buy gold on various festival occasions, it is best to avoid buying gold during the time of auspicious functions as the price will be higher. It is said that the best time to buy gold is during the month of march as the gold price always lowers at this time of every year since 1975.
- Hallmark identification: It is highly advisable to buy hallmarked jewellery items. The hallmark does not only ensure the purity of the gold and it is also a safe investment. Buying gold is seen as an investment and it is best to be on the safe side while buying the gold.
- Demanding invoice: It is a must to demand an invoice while purchasing gold or gold items. While selling the gold in the nearby future, there might be a profit and this will help in the calculation of capital gain tax. At the same time, an invoice helps in the conflicts that might happen in the near future.
Can Gold Investing get smarter?
At times, it will be hard to invest in gold all at once as the price is not affordable to all out there. But an alternate and best solution is still there for investing in gold smartly. In the present era, we can start subscribing to different gold schemes offered by the jewelleries. A sum of money has to be paid every month starting from RS 500 or more, at the end of 12 months, the user will have a portion of profit or can even buy gold equal to that amount.
What is the Goldzin app?
Goldzin is a user-friendly app developed by Zinfog Codelabs. It is an application available at both play store and apple store. The app contains different gold schemes of different trustworthy jewelleries all under a single umbrella. The user will find it easier to choose what's best for them from the variety of gold schemes available in front of them. Click here to check out more details about the Goldzin app and start your income stream with your Gold planning partner.
These are the 8 things you need to know or check before buying gold items in order to secure the best gold jewellery when it comes to quality and purity. Happy investing in gold.