The festive season is here, and in India, buying gold during festivals like Dhanteras and Diwali is considered highly auspicious.
With the recent rise in gold prices, the interest in purchasing gold has surged. Investment advisors are also recommending that people allocate a portion of their money to gold investments.
Whether you prefer physical gold or digital gold, there are several options available today. Here are five essential things to keep in mind to ensure you make the right investment.
1. Buy Gold from Trusted Dealers
If you’re purchasing physical gold, such as jewellery or gold coins, it’s crucial to buy only from trusted jewellers or dealers.
Reputable jewellers sell only hallmarked gold, ensuring its authenticity and purity. While their prices may be slightly higher than smaller, less-known shops, it’s worth it in the long run.
Gold is a long-term investment, and the purity of the gold is far more important than a marginally lower price.
2. Understand EMI Plans Thoroughly
Many jewellers now offer ‘Easy EMI’ plans, allowing customers to buy gold in instalments.
However, before opting for such plans, ensure you fully understand the terms and conditions.
Calculate the total amount you’ll be paying through EMI and compare it to the actual weight of gold you’ll receive.
Also, check the gold price the jeweller is charging you. Typically, these plans favor the jeweller, so it’s essential to read the fine print to avoid any surprises.
3. Keep an Eye on the Market Price
Before visiting a jeweller, it’s important to check the current gold price. Nowadays, you can easily find daily updates on gold prices online.
If you’re planning to make a significant investment, avoid purchasing gold on days when prices have spiked.
While gold prices have been rising recently, if they reach a record high during the festive season, it might be wiser to wait for a dip in prices before making a big purchase.
4. Beware of Hidden Charges
Often, jewellers offer discounts upfront to attract customers, but they may not always disclose hidden charges.
These additional fees, which customers may only find out about later, can significantly affect the final price of the gold.
To avoid this, always ask for a detailed breakdown of charges and make sure you’re fully aware of all costs before making your purchase. The lower the purchase price, the higher your potential returns in the long run.
5. Know Your Purpose
Before buying gold, it’s essential to clarify your purpose. If you’re purchasing gold as an investment, gold coins or biscuits are a better option.
However, if you’re buying it for a specific occasion, like a child’s wedding or as a gift for a close relative, jewellery might be the more appropriate choice.
Keep your purpose in mind while shopping for gold, especially during festive seasons.
