Gold coin price: Given a huge number of rip-offs in the market, it is ideal to be extremely cautious while making this purchase. An informed choice can only happen if you know your gold, and if you don’t this article is for you.
The gleaming gold is one of the most sought-after things in India. Gold is an integral part of all Indian weddings, religious ceremonies or any celebrations at large. While gold in any form is a wise choice, but purchasing gold coin can be the most sensible investment one can possibly make. The value of a gold coin goes beyond the status symbol everyone is seeking these days. With prices bound to increase, it is always a good time to invest in gold coins.
Given a huge number of rip-offs in the market, it is ideal to be extremely cautious while making this purchase. An informed choice can only happen if you know your gold, and if you don’t this article is for you.
Purity of gold coins is largely measured in Karats or fineness. The purest form in Karats is the 24 Karat (KT) gold which ensures that all 24 parts are gold. As you go down the Karats, the quality of Gold reduces, it is mixed with other parts of metals such as silver or zinc to make it more resilient. The other parameter of measurement is the ‘fineness’ of a gold. While some may say that even 24KT gold is mixed with a fine amount of impurities that might not be possible to remove. In order to check on those impurities and the fineness of the gold, you can weigh the precious metal in proportion to the total weight. The weight is expressed per thousand unit.
What makes gold coins a better investment than any other metal is the return on investment it offers. What makes this return even better is to buy in the form of coins which has the least making charges. The charges can range anywhere between 3-11%, whereas for others, it can vary between 8 to as high as the craftsman would like it to be. Another thing to keep in mind while reselling your gold is that the next purchaser will not pay for the making charges that have gone in the gold which is why a Gold coin gives a better return than other forms of gold.
The Government of India has created an autonomous certifying body National Accreditation Board for Testing and Calibration Laboratories (NABL) to give accreditation to testing and Calibration laboratories for certain products. Gold certified under NABL could save you a lot of time and effort in trying to authenticate product as the quality and effectiveness tests are thoroughly conducted at the laboratories for recognition.
Ask for a bill
Avoid any sort of discrepancy that may occur in the future and guarantee your purchase with a bill from the place you buy gold from. Ensure that the bill mentions important details such as total weight and price per grams in order to claim your purchase if anything goes wrong.
Gold coins come in tamper-resistant packaging. It is always recommended to not scratch or open the proof packaging of the gold coin if you wish to resell it. Always check the packaging of the coin before buying it. Intact packaging ensures that no kind of hampering has been done to the product. It will also ensure the authenticity of your gold coin’s purity.
Options to buy from
While local jewellers are everyone’s go-to for buying gold, but other options such as banks, certified gold manufacturers such as Kundan Gold Refinery, non-banking financial companies (NBFCs) can also be considered while buying gold coins. Depending on your requirement and available denominations, one can make an informed choice.
Investing right at the right time can make a huge difference to life and a gold investment, in particular, goes a long way.
(The author is Director, Kundan Group. Views expressed are the author’s own.)