Gold has been, for centuries, the most popular form of investment and is preferred by the majority for its monetary worth. The value of gold is maintained at a high rate by assigning monetary value to them by the emerging economies. When other kinds of currency fail, be it crypto currency or digital money, it is always gold that we turn to because of the value it holds. Gold can be preserved unlike paper currency and other assets and thus can be passed on to the next generation maintaining the current value.
Since gold does not corrode and can be melted over a standard flame, they are simple to deal with and imprint as a coin. Furthermore, unlike other elements, gold has a distinctive and attractive hue. Even when the market is volatile and the economy has a downturn, gold has managed to show positive results which makes it one of the best investment options.
However, when it comes to investing in gold coins, there are a few factors to be considered to make the investment worthwhile.
Check the purity of the coin
Even though purchasing gold coin is an easy process, but one of the most important factors that you need to consider before investing in it is its purity. The purity of gold coins is primarily determined by two factors: Karat and fineness, Karat being the most commonly used unit to measure gold purity.
24 karat gold is the finest type of gold, containing 24/24 parts gold. Similarly, 22 karat gold is made up of 22 parts of gold and two parts of other metals such as silver or zinc. Here, the gold is combined and mixed with other elements so as to make the gold durable while making jewellery out of it. Another feature to look for while buying gold or a gold coin is its fineness. According to World Gold Council, even pure gold might include trace amounts of impurities that the manufacturer was not able to eliminate. The weight of pure gold in proportion to the overall weight of the gold coin, including the impurities is defined as fineness. As a result, 24 Karat gold is 99.9% pure, whereas 22 Karat gold is 91.66 percent pure. It is not easy to get 24k gold jewellery, but a 24k gold coin can be easily purchased. Gold coins might be purchased in a variety of gold purity levels, including 23 Karat, 21 Karat, and 18 Karat. However, people typically purchase 22 karat and 24 karat gold coins for investment purposes.
Consider the weight of the coin
Checking the weight of the coin is also very important before investing in it. Most of the manufacturers make gold coins that usually weigh between 0.5g and 100g, though most consumers buy gold coins weighing 8g or less. However the customers can select their preferred weight or denomination, but its availability depends upon the jeweller. The weighing of gold and other precious metals necessitates the use of precise and dependable gold or jewellery scale.
Apart from its weight and purity, while purchasing a gold coin, one should also check to see if it is hallmarked. The Bureau of Indian Standards (BIS) established by the Government of India guarantees that customers are not duped while purchasing gold. Authentic and pure gold coins are always stamped upon which makes them BIS certified and ensures their standard quality.
The BIS logo, the purity and karat and fineness, logo of assaying and hallmarking Centre, and jeweller’s identification mark and number are the four components that are hallmarked on gold and are to be looked for by customers before investing in it. According to the latest standard of BIS, hallmarking is done for the specified karat of gold. However, if a customer wants to examine the purity of any karat of gold, they can always go to the BIS-gold testing and hallmarking centre.
Check the packaging
People who are interested in investing in gold coins are recommended to purchase coins in tamper-proof packaging since it provides protection against any sort of counterfeiting, fraud, or damage. Jewellers also advise not to break open the tamper-proof packaging if one wishes to resell it since the packaging maintains the credibility of the gold coin’s purity.
Purchasing gold coins is simpler than purchasing jewellery. It allows you to purchase the purest form of gold at a minimum weight of 0.5g with less manufacturing costs than ornaments such as earrings, rings, and so on. The making cost of gold coins generally ranges between 8% and 16%. Making charges for jewellery on the other hand typically begins from 8% and can increase depending on the design, craftsmanship, etc. Thus buying gold coins is more feasible and less expensive than purchasing gold jewellery.
Ensure proper billing
Having a comprehensive bill from the jeweller or any non-banking financial company from whom you have acquired your gold coin is extremely essential. It is also important to ensure that the bill includes all the important information such as Karat, the current price of gold per gram, weight, manufacturing costs, etc. You must be provided with a permanent bill that correctly documents your gold coin transaction which acts as proof of both purity as well as authenticity.
These were some of the things to check out before buying a gold coin for investment purposes. However, many non-banking financial companies provide you with an opportunity to buy gold coins online from their website and enjoy all the benefits that are offered with offline purchasing. The price of a 24 karat gold coin as of today is ₹49919.60/g.