A Complete Guide to Buying Gold Coins
by Francis Alukkas | 01 April 2022 | GOLD JEWELLERYGold has a valuable traditional, aesthetic, and economic value in every Indian household. Most of us prefer gold as coins when we buy it for investment purposes. Now, if you ask ‘Is buying gold coins a good investment?’, the answer is that coins are always preferred over jewelry because they can be bought in denominations as low as 0.5 grams. Here are some of the things to keep in mind before buying gold coins for investment or other purposes.
Purity
Whenever you buy gold, be it jewelry or coin, the most important factor you need to check is its purity. Now, gold cannot be used in its purest form because 100% gold is too soft to keep in any form. The gold as we all see it is an alloy. The purity of gold is calculated by its weight percentage in the alloy. The highest form of purity in gold is 24K or karat which is 99.9% gold. Gold jewelry and coins usually come in 22K which gold: alloy ratio would be 22:2. Similarly, there are 18K, 14K, etc. available in the market. Fineness is also a part of measuring the purity of gold. It is measured in parts per 1000. It is the percentage of gold against alloy elements and other impurities. In 22K Gold, the fineness is ideally 916.
Hallmark
The official determination and recording of the proportionate content of precious metals in the alloy are called hallmarking. In gold, it is done to ensure the purity of gold and ornaments as claimed by the manufacturer. In India, it is the Bureau of Indian Standards (BIS), a regulatory body under the government of India that maintains the standard and issues certificates to those jewelers who meet the standards of international hallmarking conventions. Hallmarking is done by stamping or by laser etching the identification of purity and year. Also, Read: What is 916 Gold?: Understanding the Purity of Gold
Package
You buy a gold coin, make sure that the package you receive is tamper-proof. A tamper-proof packaging means that the jeweler has put in that much effort to ensure the purity and finesse of every gold coin. It shows the jeweler's dedication to safeguarding their product against adulteration. Always make sure that the packages have not been tampered with.
Human-Made vs Machine-Made
Like any other sector, jewelry businesses have also been largely influenced by technology. Nowadays, you can find a lot of gold jewelry made from machines. These do not require skilled craftsmen and are made in a very short time compared to the hours spent by craftsmen. As a result, they are also cheaper because you can buy gold coins without making charges. So, when you buy a gold coin next time, think about whether you want to buy a machine-made one or one that has been made by a skilled jeweler.
Making Charges
The price you pay for a gold ornament is considerably more than that of a bar or coin of the same weight because of the additional making charges it includes. The craftsmanship included in making gold jewelry adds around 8-10% of the actual gold itself to the price. Even in gold coins, the machine-made ones are considerably cheaper. Also, Read: Gold Jewellery Making Charges: Things to Know
Denominations
Gold coins are available in many denominations from 0.5 grams to 50 grams which may cost as low as INR 1800/- depending upon market fluctuations. This makes coins a very practical and popular choice for both investment and gifting purposes.
Store
Another important factor you have to consider while buying gold coins is the brand value and credibility of the store you are buying them from. A branded jeweler has a standard to hold up and will not compromise on quality in any way as it can tint their brand's name. Local jewelers, however, have no such predicaments and have a high chance of adulteration in the purity of gold. Branded jewelers can also give you reasonable opinions and advice on the type and denomination of coins you can buy depending upon your need for them.
A wise person would purchase gold when the rates are low and when offers are available. Of the many benefits of buying gold coins in India is that it can be used during festive seasons when gifting gold is a ritual. During these times, the cost of gold skyrockets and you can make use of the gold coins you have bought earlier. We offer different denominations of gold coins in a variety of designs you can choose according to your requirements.
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