Gold has remained an attraction aesthetically and for investment purpose as well. They are a great attraction for investors and tasteful buyers. This ornament comes in different shapes and sizes based on its utility and price. Amongst the shapes, gold coins and bars are the most preferred ones. Someone who carefully buys coinsfor investment or decorative purpose should make sure certain aspects provide value and worth.
Most Indian weddings and festivals like Dussehra, Diwali, etc., are incomplete without their usage. Besides gold online jewellery shopping, gold coins are considered a clever way of investment. They are round and available in different purity levels and size range between 0.5 to maybe 100 grams.
Why buy gold coins?
There are three reasons to buy a gold coin: family or corporate gifting, auspicious or religious significance, and personal investment. Of course, it is in high demands during festivals and weddings. As stated, if you buy gold during festivals like Dhanteras, Diwali, and Akshaya Tritiya, it is considered lucky and prosperous. It is also a good investment owing to transparent pricing, negligible making charges, and decent returns.
Some investors buy gold coin online for boosting savings. Corporates get them in large quantities for gifting purpose. Despite it being easy to buy, there are somethings you need to consider:
Before buying, always check the purity of the coin. Now, you can measure this in two ways –Karat and fineness. Karat is usually the method used for measuring the purity of gold. 24 Karat is the purest form that includes 24/24 parts of gold. Similarly, 22 Karat gold means 22 parts of gold with two parts of other metals like zinc or silver. It is also a mix of different alloys for making gold more durable jewellery.
The other parameter, fineness, measures purity too. According to the World Gold Council, sometimes pure gold might contain impurities that the manufacturer cannot remove. The weight of pure gold determines the fineness of gold coins in proportion to the total weight of the gold coin, including impurities. Hence, 24 Karat gold is 99.9% pure, while 22 Karat is 91.66% pure.
But you cannot buy 24 Karat gold, but you can always buy 24 Karat gold coin online. You can purchase coins in varied purities such as 23 Karat, 21 Karat, 20 Karat, or 18 Karat. But if you are thinking from an investment perspective, consider 22 or 24 Karats.
It is also essential to check the correct weight of the coin before buying. Most manufacturers produce gold of size ranging between 0.5g to 100g. But people typically buy either 10g or less. Although you can opt for the preferred size or denomination, the availability depends on the jeweller. Some manufacturers create a standard range of small coins, which are 1g, 2g, 4g, and 8g, called guinea.
Check if it is hallmarked or no. This is a trademark certifying the purity of the gold coin based on the Indian Standard specifications. Gold gets tested and approved at the official Bureau of Indian Standard, the Hallmarking centre, for purity and fineness. Check the following components hallmarked on the coin:
- BIS logo
- Purity in Karat and fineness
- Logo of the Hallmark Centre and Assaying
- Jeweller’s identification number
This saves you a lot of effort and time in searching for authentic online jewellery.
Buying gold coins is more accessible and affordable as compared to buying gold jewellery. You get the option to choose the purest form in the lowest weight of 0.5g with lesser making charges than ornaments which generally come with higher making charges, which depends on the craftsmanship. The making charges for gold coins range between 8 to 16%.
Ensure to complete your purchase with proper billing from the jeweller you buy the gold coin from. If it is online shopping, check if they send you a valid invoice. Ensure the bill includes Karat, weight, the current price of gold per gram, and making charges. This document is essential as proof for investment purpose and legality as it mentions proper purchase value and legal ownership evidence.