Dhanteras and Diwali are around the corner and many people in India often like to purchase gold not just an investment but also to celebrate these festivals. Buying gold on the Dhanteras day is believed to bring good luck. Therefore, buying gold jewellery or coins during this period can be an auspicious investment.

However, one must be careful while purchasing the yellow metal with regard to quality, price and purity. Taking these precautions before buying gold in India will not only ensure a sound and secure purchase but also aid in making a well-informed decision that aligns with your financial goals and needs.

Here are the five key things to consider before making a purchase:

Purity and Hallmarking

Ensure the gold coin is hallmarked to guarantee its purity. In India, Bureau of Indian Standards (BIS) hallmarked gold is widely accepted. Look for the BIS logo and purity grade marked on the coin. Typically, 24 karat (99.9% purity) or 22 karat (91.6% purity) gold coins are preferred.

Adhil Shetty, CEO, Bankbazaar.com, says, “Check for the BIS hallmark on the gold item. BIS hallmark signifies the purity of the gold. Ensure the hallmark is present, confirming the authenticity and quality of the gold you intend to buy.”

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Seller’s Reputation

Buy from reputable sources such as established jewellers, banks, or trusted dealers to ensure the authenticity of the gold. Research and verify the credibility of the seller by checking customer reviews and asking for recommendations.

Price and Making Charges

Compare prices and making charges from different sellers before making a purchase. Making charges vary among different sellers and impact the overall cost. Choose a seller offering a reasonable making charge and a competitive price.

Shetty suggests, “It is recommended to check the current market rates of gold. Compare prices from various sources such as jewellers, banks etc. This helps in understanding the prevailing rates and ensures you don’t overpay for your purchase.”

Weight and Size

Determine the weight and size of the gold coin you intend to purchase. Verify it matches the standards and requirements you’re looking for. Sometimes, smaller coins might have a higher premium, so it’s essential to evaluate this against the larger sizes for the best value.

Return Policy and Documentation

Understand the return policy of the seller in case of any discrepancy in the gold coin. Also, ensure you receive proper documentation such as a sales invoice, warranty, and purity certificate for the purchased gold coin.

Additionally, consider the market trends and fluctuations in gold prices, as they might impact the buying decision. It’s also advisable to plan your budget and buy from a trusted source to ensure a secure and reliable purchase.

Taking these precautions will not only ensure a sound and secure purchase of gold but also aid in making a well-informed decision that aligns with your financial goals and needs.