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Things to be remembered while purchasing gold

Updated: Category: General
Author: Member Level: GoldPoints: 25

We all are aware of the fact that India is largest importer of gold. By tradition we use gold as ornaments and due to undecidable condition of other markets it has become one of the most preferred choice by investors. In this article I will explain thins to be considered while purchasing gold? What is meant by carat? How gold is measured? How the purity of gold is measured? And other important things related to gold.

In India we have tradition for everything and thus for using gold ornaments is our old tradition. Before the world used gold for measuring wealth of family we have been using gold to measure the wealth, status importance of family. In these days when people are more concerned in investing than only in saving gold is best option to invest in. Most financial planner with conservative view will suggest you to invest in gold and for many years investment in gold have proved its effectiveness and significance. We buy gold for many times in years such as for special muhurta, functions etc. Lets discuss things required to know before buying the gold.

Where to buy gold?

The traditional gold shops have been serving common people to buy gold since many years. But recently some banks also have started to sell the gold in their selected branches. Option of buying from bank is better than buying on shop. But banks doesn't sell jewelry they sell only coins of gold. So if you want to buy gold jewelry then traditional shop is best option.

How the purity of gold is measured?

Purity of gold is measured in terms of 'Caret'. Thus 24 caret gold is purest gold and as no. decreases the purity of gold also decreases. Thus 22 caret gold is purer than 18 caret gold. We can buy only gold coins in its purest form. For making ornaments gold have to be mixed with other metals to get some other properties so that it will make best ornaments. In this way purity of gold decreased as amount of other metals is increased.

What is gold ETFs?

It is the best option if you are buying gold for only investment purpose. It is acronym for Gold exchange traded funds. This is the option by which you can buy gold electronically in demat form. In this way you need not to worry about the purity of gold. But you can buy this if you are heavy investor. At least 1kg of gold can be purchased through this method of investing and you have an option to convert paper gold to physical gold also.

Research the price?

Since last 10 years the price of gold has not remained constant, it keeps changing almost daily. So before buying gold and before going to any shop you must research thoroughly the current date price of gold. you can check this price on any newspaper or on news channels. Also study the current market situation so that you might want to wait for few days as there might be chances of dropping the price of gold.

Important tips for buying gold?

  1. Always buy the gold from reputed shops and if you know anyone in this industry buy at his shop.

  2. Always ask for receipt for your gold purchasing. Actually you must not buy gold without receipt.

  3. Buy gold with hallmark symbol on it. It indicates the symbol for purity and guanine nature of gold.

  4. If you are buying gold coins or bars then purchase them from banks only.

  5. Do not buy gold from any unauthorized person or shop this is serious criminal offence.

  6. Gold has been the main attraction in Indian culture, specially for Indian women. So you have faced this condition and I hope this article will definitely help you are in state of buying gold or investing gold.
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