There are various forms of buying gold – these can range from gold jewellery, to gold coins, gold biscuits, gold bars, etc. But why do we buy so many different types of gold? Just as importantly, what should you keep in mind to make the most of your buying decision?
Here we’ll discuss the things to keep in mind when buying gold coins.
People purchase gold coins during at and during various occasions, mostly important auspicious days like Dhanteras, Diwali and Akshaya Tritiya. These gold coins are simple, they have religious value when inscribed with a meaningful design and once quality is verified, it’s an easy way for people to buy and store it, while knowing the value denomination. You can also buy gold coins online or offline – which makes it extremely easy to purchase!
How to Evaluate Physical Gold:
There are a few different types of gold available and these should ideally be considered in your decision-making criteria keeping in mind purity, quality and price. You should know what you’re getting!
Pure 24-karat gold is soft, so it’s used primarily to make less intricate objects and the most common way to buy it is in the form of gold coins, bars and biscuits.
Gold jewellery, on the other hand, is made by adding other metals like silver, copper, nickel and zinc to give it durability. Jewellery is usually 22, 18 and 14-karat.
Gold bought purely for investment should be of 24K since you stand to gain the most over time if the gold content has not been diluted. Of course, many people choose to combine both needs- adornment and investment- into a single piece.
- Purity – Before buying, check with the purity of the gold coin. Purity can be measured in two ways, so the two way of measuring the purity of the gold coin is measured in karats and fineness. If you examine your gold, you’ll often find that purity is displayed numerically, and these numbers correspond to the percentage of purity. This is called the Fineness Number. So, for example, 995 or upwards corresponds to 24K gold, 916 corresponds to 22K gold, 750 corresponds to 18K gold, and so forth.
- Hallmark – Purity is important, but with purity, you should also check with the hallmark. The marking of karat value is mandatory on each piece of jewellery, called ‘Hallmarking’. The Government of India set up the Bureau of Indian Standards (BIS) to ensure that consumers get what they pay for and so they certify gold coins and jewellery by stamping it (embossing its mark on the gold item) to certify the level of purity of the item.
- Assay Certification – Gold coins and bars will often carry the mark of the Assay Certifier, a government-mandated institution that tests the coin or bar for purity standards and content.
- Making charges – The price of gold jewellery is based on the purity of the gold, the mix of alloys used, and by the amount of skill and labour that goes into it (referred to as the making charge) — this can often carry a charge of 10–25% or more, especially for jewellery with stones. Since these charges typically vary from jeweller to jeweller, it’s possible you might be able to bargain a little, but you should also know that BIS Hallmarked Jewellery will carry a higher making charge than non-branded gold.
This is one of the areas in which bullion- i.e. coins and bars- wins out over jewellery from an investment perspective. From an investment perspective, gold coins are more beneficial to investment-focused consumers because the making charge for the coin is far lower than the cost of making jewellery.
Option to buy – There are various options that you can choose, you can visit local stores or indulge in some gold coin online shopping, where the best of your options will lead you to digital gold as the cheapest, most efficient and most convenient way to buy a gold coin. The right platform takes care of all these considerations! Happy shopping!