Things you must check before buying gold

The price of gold is ever increasing and so is its demand. Many Indians plans to buy a gold during auspicious occasions while many buy it as an investment.

People buy gold either in the form of gold coin, bars, ornaments or they purchase e-gold via ETF route. If you are also planning to buy gold, please consider the following things.

Gold Price

The price of gold is variable and depended on multiple factors. Make sure that you are buying a gold at a reasonable price. You can check the gold rate from online websites.

Purity of Gold

There are two ways to measure the purity of gold. First is gold karat and second is fineness. Karat is a widely used term for the purity of gold globally. 24 Karat gold is considered as a purest form of gold. However, for gold ornament 22 Karat gold is used. In case of a gold coin, one can buy 24 Karat Gold.

Hallmarking

Hallmarking is mandatory on gold coins and ornaments. The government of India has setup BIS (Bureau of Indian Standards) to ensure that customers are not cheated when they buy gold. BIS certify gold by embossing BIS logo, purity in carat and fineness, a logo of hallmarking center and jewelers identification mark and number. One should always check hallmarking when they buy gold.

Making Charges

Another important factor that affects gold price is making charges. It is variable and depends upon jewelers, type of gold ornament and craftsmanship. If you are buying gold coin making charges are in the range of 8-16%.

Option of Buying

There are multiple ways to buy gold. People generally buy gold from a local jeweler or branded jewelery showroom. However, there are many other options of buying gold such as online website, MMTC, Muthoot finance etc. If you are buying a gold coin you can even approach the bank for buying. Many banks offer 24 Karat gold coins in the various denomination.