The festivals of Dhanteras and Diwali is set to spark off a gold-buying rush as it is considered auspicious to buy the yellow metal on the day. But gold buying can be tricky and you need to be careful about several things including the purity of the metal, the place where you buy and whether the seller would be willing to repurchase the metal at a later date.
Also, discount offers which flood the market during this period should not be the main criteria for purchase, say experts. “Irrespective of the occasion, the most important thing is to avoid making decisions based solely on ‘attractive’ discounts. Make a thorough check before buying and always insist on Hallmark jewellery,” says Saurabh Gadgil CMD PNG Jewellers & Director IBJA, told FeMoney.
Along with being careful on discounts offers, you can consider buying from a seller which has national presence. “Given the fact that most people are mobile and shift cities, whether your jeweller a national player would also become an important factor. For example if an individual shifts jobs or locations after a period of 2-3 years, purchase from a national brand is an added advantage,” says Vijay Jain, CEO and Director, ORRA Fine Jewellers.
He reminds that bank do not offer buy back option. “Purity, price and from whom you are making the purchase are important factors to keep in mind when buying gold. For example, if one is buying from banks, they typically have higher making charges and don’t offer buy back gold most jewellers do,” Jain said.
Here are a few things that you need to keep in mind as you head for the market to purchase the yellow metal:
*Buy gold with BIS Hallmarking which guarantees its purity. Buy the metal with certification of 22-carat purity
*Scout the market for the best price deal. Discount offers available should make your purchase price attractive
*If you are buying from a jeweller, you should purchase a reputed outlet, with good track-record and credibility
*Always insist on a bill. Without a bill you will have trouble in case you want to exchange the precious metal later.
*Your portfolio should not be overexposed to gold. The holding should be limited preferably to around 10 per cent. High concentration of gold might create portfolio volatility
*Buy gold for the long term. Gold prices are exposed to global events and might face volatility in the short term