7 important tips to buy a gold coin in 2019
Gold has remained an attraction for generations for aesthetic purposes, and for the investment value. Gold coins are a great attraction for the investor and the tasteful buyer. They come in different forms and sizes depending upon the utility and price. Gold bars and coins are the most preferred types of variations in shapes. A careful buyer of gold coins for investment or decorative purpose need to ensure seven essential things to provide the value and worth of the gold coins he/she purchase. The seven dimensions to be considered while buying gold coin are Hallmarking, Purity, Packaging, machine craft or hand-crafted, denominations, making charges and Brand value of Jewellery store.
Purity: The most important aspect that a gold buyer has to ensure is the purity of the gold coin or ornaments they purchase. The focus remains that the weight percentage in the alloy and the fineness exists in the gold article. The purity of gold is expressed in carats often represented by ‘K’ . The highest form of purity is 24K, and all other kinds are measured in relation to 24-carat gold. Fineness is measured in parts per 1000. It is the percentage of precious metal against the other alloying elements and impurities in the alloy of gold.
| Purity | Gold content (wt. %) | Fineness |
|---|---|---|
| 24 carat gold | 99+ | 990 |
| 22 carat gold | 91.6 | 916 |
| 18 carat gold | 75.0 | 750 |
| 14 carat gold | 58.5 | 585 |
| 9 carat gold | 37.5 | 375 |
Hallmarking: Hallmarking ensures credibility and the validity of the claims of purity of gold and ornaments by the manufacturer. The international hallmarking convection mandates that gold percentage in the alloy is above the threshold. BIS (Bureau of Indian Standards), the Government of India regulatory body which maintains the standard issues certificates to gold coins and jewellers that meets that standards of the convention as per norms of Government of India and International hallmarking convention. Hallmarking done by stamping or by laseretching provides identification of purity, identification of Jeweller and the Year of Hallmarking.
Packaging: This crucial factor increase credibility to the purchaser. Tamper-proof packaging is a must to ensure the purity and fineness of gold coin and item remains intact against adulteration. One should avoid tampered packages since jewellers offer no validity towards claims of less weight or purity in such conditions.
Human-made or machine-made ornaments: Modern day technological advancement have entered jewellery business also and machine-made gold coins and ornaments have lesser price than the traditional handmade items which requires skilled craftsmanship and more extended working hours resulting in higher cost attached to making charges. While machine-made articles in investment options improve the authenticity through mechanised hallmarking using laser and stamping facilities, traditional skilled craftsmanship in ornaments and decoration items are highly sought after giving priority to humanmade ornaments.
Making Charges: Manufacturing procedure will influence making charges levied by jewellers on coins and ornaments. The relative effort and craftsmanship used in making complicate jewellery designs make it cost higher at about 8-10% higher from the actual value of gold, and this makes gold in the form of coins and bars more affordable for investment purpose. Purchase of gold coins can be preferred from machine-made options since it reduces unnecessary making charges
Denominations: The investment options and the prices factors are crucial in deciding the number of gold coins purchased. Various jewellers and manufacturers offer a wide variety of denominations to customers. The range of denominations varies from 0.5 grams to 50 grams depending on the size and trend of the market. The current rate of small gold coins available for purchase is around Rs1800-Rs2000/- but is dependent on market fluctuations.
Jewellery Store: The brand value and credibility of the Jewellery store and gold coin manufacturer are vital since there are high chances for adulterations and contamination in the purity of gold coin when purchases are made from a local jeweller with no brand value. Preferably, purchase of gold coin for investment purpose can be made through stockholding Corporation of India attested vendor outlets which may be financial and non-financial institutions. Gold prices fluctuate depending on international prices and financial situations. In India, it is also dependent on the festive and seasonal variations.
Purchase of Gold peaks in festive seasons making the prices also to soar high. A wise investor in gold will make purchases when the rates are low and when jewellery stores and manufacturers provide various offers during the offseason.
