Points to consider while buying gold coin and gold jewellery:
Various types of gold quality:
Purest form of gold is 24kt which has purity of 99.50%. it comes in various shapes such round, rectangle, square hexagon etc. The shape doesn’t matter but the purity of coin matters. So always check the purity of it rather than shapes. Another form of buying 24kt gold is buying vala (vedh) or piece (tukda) from a bar. There is a trend of customers asking for 24kt gold coin with 99.90% or 99.99% purity but there are very few brands of bullion companies who provide it genuinely so we request customer to buy gold coins with 99.50% purity only. Only gold coins with 99.50% purity can be hallmarked but not gold coins with 99.90% or 99.99% purity.
Next purest form of gold after 24kt is 23kt which purity of 95.80% in which jewellery can made but very limited designs because this form of gold doesn’t provide hardness as a result ornaments get damaged easily. Very few jewelers keep a ready stock of it (23kt) but if customer needs it he/she can order it.
22kt gold jewellery comes with 91.60% purity with remaining percentagemixture of silver, copper or zinc. The colour of jewellery varies as per the composition made by the jeweler or karigars. The jewellery will look whitish if silver is added more and reddish if copper or zinc mixed in higher proportion. The jewellery made in 22kt is majorly sold by branded and non branded jewelers. Always buy jewellery with BIS logo on it. Many jewelers don’t hallmark it and does their own stamping on it.
18kt refers to gold jewellery with 75% purity of gold. In India all diamond jewellery is made out 18kt gold only to give extra hardness to the jewellery so that diamonds remain intact and doesn’t fall easily. So always buy diamond jewellery with 18kt gold only.
In international market 14kt and 10kt jewellery is used majorly compared to India. In India people don’t buy this quality of gold as purity is low much but other markets like USA, UK, AUSTRALIA Etc buy this quality only as well as they use it as fashion jewellery. In India gold is bought for saving money during hard times whereas internationally people buy it for fashion and design.
Factors to consider other than quality of gold:
1. Making Charges:
Making charge of gold depends on various factors such as purity of gold, design of the jewellery as well as on the ethics of the jewelers. Generally making charges on 22kt(916) is around Rs. 100-600 per gram depending on the brand of jewelers but we are only company charging zero making charges on 916 BIS hallmark gold jewellery. The reason we are offering is we have no overhead cost as well as we are working on no inventory model so we can afford it. All machine made jewellery has low making charges compared to hand-made jewllery. Jewellers earn around 5-20% by charging making charges only (which is not wrong too as they have many overhead costs)
2. Type of Jeweller:
While buying any type of jewellery always consider the reputation of the jeweler in the market as well as the kind of service provided by them. Always buy from whom you trust and provides quality product and service.
3. Buy Back Policy:
There are different types of customers in the market as well as jewelers so each jeweler has its own ways and means of convincing a customer. There are so many different ways a jeweler can sell his jewellery which even this article nor can any financial advisor cover it. Eg: some jewelers charge higher gold rate, some charge high making charge, some offer discounts, some cheat customers etc so customers have to check carefully. Buy back policy also varies jeweler to jewelers but in the end each jewelers earns his margin.
Importance of Gold:
Gold has huge significant importance in India because of its high acceptance value. In India, every daily wage earner feels secured in saving money in form of gold. Gold is used mainly for savings, wedding, investment, and gifting, religious purpose in India. India is a country with diverse culture with different languages, caste and religion. Buying of gold is influenced by various factors in India. Gold is bought in various forms such as chain, bangles, earrings, finger rings, pendant, bracelet, necklace, mangalsutra, kids jewellery, mala, pendant sets etc. gold is also considered as one of the best gifting option. Compared to other countries Indian people love wearing plain gold on daily purpose. On Occasions like Diwali, Dusshera, Gudi Padwa, Onam, Gurupursham, Akshaya Tritiya, birthday, anniversary, birth ceremonies, valentine days etc gold, diamond and silver are bought in large quantities around the country.
At time of adversity too gold is considered to be best option as it can easily be en-cashed therefore many people in India instead of depositing cash into bank account prefer saving in gold form. Gold is considered to be the best friend at the time of adversity. In India a person value is compared with amount of gold he/she holds with itself.