Dhanteras 2019: Don't be fooled! Do this while buying gold this festive season
Dhanteras 2019 marks the beginning of Diwali period and is observed to celebrate wealth and prosperity. The day is considered auspicious for buying metals, including precious metals, especially gold. You need to be aware of how big a problem this is as a huge number of people lose massive amounts of money to fraudsters.
Dhanteras 2019 marks the beginning of Diwali period and is observed to celebrate wealth and prosperity. The day is considered auspicious for buying metals, including precious metals, especially gold. So, there is something that you must not do. And what is that thing you should not do? Well, you should not make the big mistake of ignoring these tips we provided below. If you ignore them, you will lose good money on the purchase. Yes, you need to be extra careful while buying gold to ensure that you are not fooled.
"So, as the Diwali festive season is in full swing, we observe the trend of more and more people flocking to jewellery stores to stock up on gold. Due to its stability and highly liquid nature, gold is also a sound investment and many portfolio managers prefer it as it provides a cushion to other volatile investments," explains Keyur Shah, CEO, Muthoot EXIM (Precious Metals Business). Notably, despite the big rise in gold prices, it still generated returns of 21% this year for gold buyers.
You need to be aware of how big a problem this is as a huge number of people lose massive amounts of money to fraudsters. Shah elaboretes, "It is important for one to be careful about a few things before buying gold as there is tons of impure gold doing the rounds in the country and all kinds of malpractices are associated with gold selling".
Here are five things you need to check before buying gold, according to Keyur Shah -
1. Check purity of gold: The first and foremost step is to look for a hallmark on the gold you’re buying. In India, Bureau of Indian Standards (BIS) is the official hallmarking agency. A hallmark has a number attached to it along with BIS stamp. Thus, when you’re buying gold, always make sure it is BIS certified.
2. Check gold price: The rate of gold fluctuates every day and thus it is important to cross-check current gold rate before making a purchase. While most jewellery stores display the gold price every day, some do not. Notably, to calculate the price of the type gold you’re buying by subtracting the purity of the gold from the rate. For example, if you are buying 22K gold, it implies 91.6% pure gold. Thus, there will be a 916 stamp on 22K gold jewellery.
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3. Negotiate gold jewellery making charges: Making jewellery requires labour cost and jewellers generally pass on this cost to the customers. Making charges are unorganised and are decided by jewellers themselves. Machine made jewellery with less intricate designs usually come with lower making charges with up to 6-14% of the cost of gold. If the jewellery feature has an intricate design, jewellers can charge as high as 25% of the cost of gold as making charges. It is your right to negotiate the making cost to get the best value for your gold purchase.
4. Ask for a gold purchase invoice: One must always ask for an invoice while buying gold as it serves as an official and legal record of your gold purchase and would also help you in tax related queries. A bill will also assist you while exchanging gold and prevent you from being overcharged as it would list making charges, GST and the current rate of gold.
5. Consider your options amongst gold sellers: Although the most convenient option of buying gold would be from a local jeweller, one should consider the various options available including various banks, e-tailers, MMTC or certain Non-banking finance companies for expanded offerings. However, ensure the organization of your choice is trustworthy, transparent and responsible in meeting the highest quality standards. Before making this investment be 100% sure to maximise the benefits and returns.
(NOTE: Zee Business brings to you an exclusive line up of programming for Diwali 2019 with experts, insights & sharp acumen under Zee Business Damdar Diwali show. A Diwali treat for you only on ZeeBusiness.in!)
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