Buying gold is not just a tradition; it’s also a smart money choice. In this blog, we will share five important things to remember when buying gold this Dhanteras. From checking the purity of the gold to picking the best way to buy, we’ll help you make a wise purchase this festive season.
The first and most important thing you must ensure when buying gold is its purity. Gold is available in different forms, including 24-karat and 22-karat, each differing in purity.
24-karat gold is 99.9% pure but is too soft for making jewelry.
22-karat gold is 91.6% pure and is mixed with other metals like copper or silver to give it durability, making it ideal for jewelry.
When purchasing gold, it’s essential to look for the BIS (Bureau of Indian Standards) hallmark, which guarantees the gold’s purity. Hallmarked gold undergoes strict quality checks, ensuring you get what you’re paying for.
Tip: Always check the hallmark to make sure the gold is pure. If you don't have this certification, you could pay more for gold that isn't as pure as you think.
BIS logo: Indicates the gold has been verified for purity by the Bureau of Indian Standards.
Purity grade: A number (e.g., 22K916) indicates the karatage.
Assay center mark: Indicates the center where the purity test was done.
Jeweler’s identification mark: The logo of the jeweler selling the gold.
Gold prices change every day because of international market rates, taxes, and import fees. Gold is bought and sold worldwide in U.S. dollars, so changes in the dollar rate or global demand can affect the price of gold in Indian rupees (INR).
Before you buy gold, compare prices from different jewelers and online stores to get the best deal. You can find daily gold prices in newspapers, on financial websites, or through apps that show gold rates.
Making charges: Jewelers add fees for turning gold into jewelry. These fees can vary a lot based on the design. Some jewelers have fixed charges, while others charge a percentage of the gold’s price.
Taxes: When you buy gold in India, you pay a 3% GST (Goods and Services Tax) on the gold's value and an extra 5% GST on making charges.
Discounts and Offers: During Dhanteras, many jewelers give festive discounts on making charges or might not charge them at all. Look for these offers, but be careful of any hidden terms and conditions.
Tip: Compare making charges and GST from different jewelers before you buy. If you are buying gold online, watch out for extra shipping or insurance costs.
Buying gold doesn't always mean getting jewelry. You can invest in gold in different ways, based on your budget and financial goals. Here are some common gold investment options in India:
Gold jewelry is the traditional way to buy gold, but it usually has the highest making charges. If you're buying jewelry, think about the design and how comfortable it is to wear. Just know that it might not be the best investment because of the extra costs.
Gold coins and bars are popular during Dhanteras for people who want to invest in pure gold. They usually come in sizes from 1 gram to 50 grams and can be found at banks, post offices, and jewelers.
Tip: Gold coins and bars have little to no making charges compared to jewelry, so they are a great choice for investors.
SGBs are government-backed securities that show you own gold. The good thing about SGBs is that they give you 2.5% interest each year, plus the value of gold may go up. You can buy SGBs at banks, post offices, or online.
Gold ETFs let you invest in gold without having to hold it physically. They are bought and sold on the stock exchange, and their value changes with the gold market. Gold ETFs are great for people who want to diversify their investments.
Tip: If you’re looking to invest in gold purely for financial returns, consider options like SGBs or Gold ETFs, which have no making charges and offer better liquidity.
Gold is a costly purchase, especially during Dhanteras when many people buy a lot. Luckily, there are several payment and financing options to help make buying gold easier.
Many jewelers offer zero-interest EMI plans for buying gold. This lets you purchase gold on Dhanteras and pay for it over several months without extra interest.
Many jewelers have gold savings plans where you can deposit money each month into their account. After the saving period (usually 12 months), you can use the total amount to buy gold. These plans help you save money regularly and make the most of price changes.
If you have a high credit card limit, you can buy gold with your credit card and change the amount into easy EMIs. Many banks have special offers during the festive season with low-interest EMI options for buying gold.
During festive seasons like Dhanteras, many people feel excited to buy gold. While it’s tempting to buy more when prices look good, it’s important to stick to your budget and not make impulse purchases.
Why am I buying this gold? Is it for investment, or is it for personal use (e.g., jewelry)?
How much gold do I actually need? Avoid overspending on gold that doesn’t align with your financial goals.
Can I afford the repayment? If you’re financing your gold purchase with a loan or EMI option, ensure that the repayment plan fits your monthly budget.
| Step | Things You Should Never Miss When Buying Gold |
|---|---|
| 1 | Check the purity: Ensure your gold has a BIS hallmark. |
| 2 | Compare prices: Look at market rates, making charges, and GST. |
| 3 | Explore investment options: Consider jewelry, coins, SGBs, or ETFs. |
| 4 | Evaluate payment options: Use EMI schemes, gold savings plans, or credit card EMIs. |
| 5 | Avoid impulse buying: Stick to your budget and buy what you need. |
Buying gold on Dhanteras is a lovely tradition, but it’s also an important money decision. Whether you’re buying gold for religious reasons, personal use, or as an investment, it’s crucial to make smart choices. Check the purity, compare prices, look at investment options, and think about how you'll pay. This way, your gold purchase can bring you joy and financial safety. Remember to stick to your budget and don’t buy more gold than you need. A good plan will help your wealth grow over time!
It depends on the purpose of your purchase. 22-karat gold is ideal for jewelry because it’s durable. 24-karat gold is purer but softer, making it better for coins or bars.
Making charges are fees for crafting gold into jewelry. To reduce them, look for jewelers offering festive discounts or consider buying gold coins, which have minimal making charges.
Compare prices from different jewelers and online platforms. You can also check daily gold rates in newspapers and financial websites.
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