Things to Know Before Investing in Gold

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Gold has a way of mesmerising Indian and global investors, but investing in any commodity needs an outlook and understanding of the trends in the market.

When planning to invest your hard-earned money in gold, there are certain things to consider before diving in. Let the experts at Bullion India enlighten you about the dos and don’ts of buying gold.

In what type of gold should one invest?

‘All gold may glitter, but all that glitters may not be gold’.

There are various varieties of gold available in the market based on priority. If investing in gold for the future make sure, you analyse your buying options before entering the purchase. Gold is available in many levels of purities and forms based on buyer needs and budget. From small 0.1gm gold coins to large gold bars adorn the market, each available in different karats and fineness.

24-karat gold is the purest form of gold, available in form of bullions, shaped in coins or bars. This 24-karat 99.9 fineness. 24-karat 99.5 fineness gold bullions are available with Bullion India in certified tamperproof packs, which can be readily purchased and redeemed. This gold is brittle in nature and cannot be used for jewellery making in its pure form. Nevertheless, the pure gold bars and coins are internationally recognised, giving them an advantage of liquidity and resale.

22-karat, 18 karat and 14 karat, so on, are lesser purity gold available globally. Many bullion retailers provide 22-karat gold bars and coins for sale as well. The percentage of gold in the aforementioned type of gold is less than 91.67%. This reduces the weight of pure gold purchased for the money the buyer spends. Even though, these types of gold are priced lower and favourable for jewellery making. Their purity is compromised.

Should one buy Bullions or jewellery?

Jewellery: The debate of one over the other is futile, if the requirement of gold is ornamental. If one seeks gold in form of jewellery for adornment on wedding and daily use, there is no question that 22karat and lower gold, in form of jewellery can be purchased at any retailers. Even though, the amount of gold is lower than value, and the addition of making charges, taxes and retailer premium increase the price of gold above its actual market value, which are lost during resale.

Bullions: If one wishes to invest in gold as a future investment, bullions of 24-karat pure gold, available at bullion India are preferable. As the gold offered is pure and liquid in nature.

When is the best time to buy gold online or buying Digi Gold?

Online websites like Bullion India offer gold around the year, with their live spot prices. It is necessary for buyers to analyse the trend of gold and invest when gold is at a low.  Most gold purchases are based on the need and availability of money. Opting for SIP plans offered by Bullion India may offer cost averaging when purchasing gold online.

Today, gold purchases are simpler at low rates, through online portals. These retailers offer lower than market rates and make gold affordable and available to buyers.

Read More: How to save in gold on this Akshaya Tritiya?
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