How To Purchase Gold: 6 Things To Know Before You Buy Gold

by Francis Alukkas | 21 September 2021 | GOLD JEWELLERY

The importance of gold as an investment is rising as the economy is increasingly uncertain and fickle as inflation increases. Setting a portion of your investments away for gold will ensure there is something easily sellable in times of financial crisis. Before that, you need to know how to purchase gold and what are the pros and cons related to it.

In India, most people buy gold jewellery for celebratory occasions and festivities. Gold jewellery purchase is the highest in the world in our country. However, there are other ways to invest in gold as well. So, if you are seeking opinions on how to purchase gold, here are 6 things you should know before you do.

Why you Should Buy Gold?

People buy gold mainly for two reasons. Firstly, gold is an investment. Secondly, it is a mode of insurance. People who are affected much by economic crisis consider purchasing gold and owning it as insurance. The trends in gold prices indicate that it is safe haven for investors. Whatever the state of economy is, gold is an investment you can be in control of. It offers security against economic inflation and deflation.

Types of Gold Available for Purchase

When you study about how to purchase gold, you should definitely know about the types of gold available for purchase as an investment. There are mainly three ways to purchase gold:

Gold bullion: You can purchase gold as coins or bars. They can be bought from gold jewellery stores or online. Make sure you buy it from reputed brands.

Gold jewellery: Jewellery is a popular option in purchasing gold among Indians. Experts do not think it is a wise investment option as the retailers add a high mark-up on jewellery, it is still a good choice since many Indians consider buying gold for important occasions and when the prices go up considerably, you can still recoup the money invested in it. Gold jewellery is easy to sell and it is easily available for purchase online and at stores. Besides, it is something you can use personally without losing value.

Mining stocks: This is a popular, albeit high-risk investment method in which stockholders own a share in the mining process through investing in the companies which run them.

Planning to enroll your name in the best gold invest scheme in India? Then check: Easy Gold

When to Buy Gold?

The general rule in investing is to buy when the prices are low and sell when the prices are high. It is important to know when to buy gold when you are researching how to purchase gold. Be updated about the market and the seasons when the gold rates decline. The month of March is said to be when the gold prices are the lowest in average since 1975. Between January and April is an optimal time to buy gold as well.

How Gold is Priced

The price of gold keeps changing rapidly. It is influenced by several factors around the world like geopolitical uncertainties, the central bank reserves, the global demand, supply, etc. The current price is called the spot price and while purchasing gold, you will always pay more than that, usually by 5-8%. However, when you sell, you sell it at the spot price. Gold dealers do not settle for anything less than that, hence it would be wise to understand that dealers who say they do not charge the extra are probably not the best.

Also, Check: Should I Invest in Gold?

How to Find the Right Gold Dealer

Research the popular dealers and be sure they are transparent in all their dealings. If you decide to invest in gold jewellery, you should know what to look for when buying gold jewellery in India. Buy from the best gold jewellery shops in India belonging to reputed brands because that way, you have less risk of being ripped off.

How to Buy Gold Online?

When you decide to buy gold online, make sure you are purchasing it from the online showrooms of reputed brands and not through random online dealers. Also, it is wise to avoid purchasing gold on online auctions and bidding sites since you could end up paying more than its worth.

Find More: Jewellery Designs In Gold With Price

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