Gold has always held a very important position in India. Not only is it one of the safest investment options, it is also considered supremely auspicious which is why it is bought on major occasions like weddings, Diwali, etc. There are of course a lot of benefits of investing in this precious metal, like safety against inflation, however, when you plan to buy gold, you cannot be indifferent about your approach.
After all, you are going to be spending quite an amount on this purchase; it is therefore a good idea to be careful and alert in equal measure when you go about it.
Here are some of the most important factors that you must look at, when purchasing gold:
You need to realize that there are a lot of variations in gold that affect its quality and purity and therefore, its price. Pure gold is too soft to be used in jewellery, and is always alloyed with some other metals to lend it strength and durability. Referred to as caratage, the most common options are 18, 22, and 24. The higher this number is, the purer the gold.
The Bureau of Indian Standards or BIS certifies gold ornaments and products for its purity; gold which is checked is known as being hallmarked. BIS certifies the purity of the gold and engraves the same, along with the retailer’s name and their mark on the product, to ensure that no customer is duped. Whenever buying gold, ensure to check the hallmarking of the product.
There are a lot of factors, like the price of the American dollar, market fluctuations, etc. that affect the price of gold. This price may change with each day, so make sure that you check the current price before heading out to buy.
A number of jewelers offer buy back options where you can exchange your old jewellery for new one. While trends in gold jewellery may keep changing and upgrading, the value remains the same. That is why discussing buy back terms at the time of purchase is a good idea for the future when you might want to get the latest designs in jewellery in exchange for the old ones. Also, make sure you know about the buy-back periods and policies of the jeweler.
Always, always, always ask for a valid invoice or cash memo that has all the details of the amount you paid for the gold product. If in any case you need to make a complaint, it will not be entertained until and unless you have a valid bill. No matter how trusted your source is, always insist on a valid bill.
Be proactive in understanding the basics, the historic trends and the current market dynamics, and wait for the right time to buy; make sure your investment is well worth its weight in gold!
We are India's No.1 - Most Trusted Financial Services Brand, according to the Brand Trusted Report, 2017 & 2016 consecutively. We are also the largest Gold Financing Company in India in terms of loan portfolio, according to the 2015 update to the IMaCS Research & Analytics Industry Reports, Gold Loans Market in India, 2015 ("IMaCS Industry Report, (2015 Update)"). We provide personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time-frame, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.
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