With the onset of Navratri, the festive mode begins in India. festivals like Karwa Chauth, Diwali, Dhanteras, Bhai Dooj, and so many more means celebrations and gifts and when it comes to gifts, what better than gold? Especially when you are gifting it to your loved ones, gold becomes the first choice and, in this segment, Gold coins top the list.
While there are so many places from where you can buy gold like a local jeweler, bank, non-banking financial corporations, MMTC and stock holding corporation of India, gold comes in various sizes and prices. While predominantly, the purity of gold determines the price of gold, there are several other factors that influence it.
Here are a few things you must keep in mind before buying gold coins for yourself or your loved ones;
The first and foremost thing you should take care of is the purity of the gold coin you are buying. Generally, the purity of gold is measured in terms of Carat and 24-carat gold is considered pure gold, this means 24 parts out of 24 parts must be gold in the composition of gold coin. There are coins available in other levels of purity like 22-carat gold which means 22 parts are gold and 2 parts are other alloys or metals like zinc, copper, silver, etc.
This mixing is done in order to provide strength and durability to gold as gold itself is a very soft metal. 24-carat gold is the purest form of gold and is described as 999.9 on a count of 1000 in terms of fineness or purity according to the World Gold Council.
For people looking forward to buying gold ornaments or jewelry, 22 carat or 18 carat gold is mist suitable depending on your budget but gold coins can be bought in 24-carat purity.
The next thing to make a note of while buying gold coins is hallmarking on them. hallmark is a stamp if purity from the government of India’s Gold governing body called the Bureau of Indian Standards. Every genuine gold and silver coin or ornament or product contains a BIS hallmark.
There are 4 things which comprise a complete hallmark:
- BIS logo
- Hallmarking Center logo
- Purity in carats or finances
- Jeweler’s identity mark or number
These rules have been applicable since January 1st, 2017. This hallmark is mandatory for jewelry made from 22k, 18k, and 14k gold only.
Gold coins come in special packaging which is also considered as a mark of purity. Jewelers especially suggest buyers not to tamper the packaging if they wish to resell the coin. Untampered packaging is proof of purity.
- Making charges
One aspect where jewelers charge the most and exercise almost free to will power is making charges. But in the case of gold coins, there is very little margin for making charges. The making charges for gold coins generally range between 3% to 10% whereas, in case of jewelry like chains, earrings, bracelets, rings, etc, the making charges start from 8% and can go up to 50%. The idea is, the more intricate the jewelry, the higher the making charges are.
The gold coins are available in different sizes and shapes according to which the price varies. Before you head to buy a gold coin, check for the day’s price as gold rates change every day. Starting from 0.50 gm you can buy ready made gold coins weighing up to 50 gm. If you want a coin of higher weight, you can get it custom made in the form of coins or gold bars.
A lot of merchants claim of selling pure gold be it your local jeweler or some middlemen who source gold ornaments from some craftsmen or from abroad in the name of the latest designs, make sure you only buy hallmarked jewelry.
In India, you can buy gold from a certified jeweler, banks, MMTC, stock holding corporation of India and non-banking financial companies. The weight of gold coin may vary with these institutions like some may sell 24 carat gold in 5 gm coins, some in 0.50 gm coins and so on. But before you buy, make sure of checking the BIS standard stamps and get a purity card for your purchase.
Reselling of gold coins is a little bit tricky in India. the RBI has given clear instructions to banks for not buying back the sold gold coins i.e. you cannot sell back the gold coins to the same bank from which you bought them and for that matter, you cannot sell them back to any bank.
This is why people generally prefer buying gold coins from local jewelers but in this case, also the price keeps decreasing if you sell these coins to a different jeweler. And if you happen to sell them to the same jeweler, then also you do not get the same price as making charges and other administrative charges are not paid back.