Buying gold is a good decision. Holding gold will give you more financial security. But, before you buy gold, you need to consider a few things. It’s easy to get carried away when you buy gold. But, there are certain things that you need to keep in mind before you make the purchase. This blog will help you make the right decisions when you buy gold. It’ll tell you five things you need to avoid while buying gold.
Gold loan is a service that can fetch a great deal of money for you, but it can also take away from you. Here are the most common mistakes you can make while purchasing gold that may affect your gold loan.
.
Here are some tips to keep in mind when buying gold jewellery
Get to Know the Purity
Customers make the most common mistake when purchasing gold jewellery. They don’t look for the purity stamp and instead follow the advice of the jewellers. It’s important to invest in pure gold because it will cost you a lot of money. How can you verify the authenticity of precious gold metals? It’s easy! Look for the BIS hallmark stamp embedded inside the jewellery.
The hallmark stamp on gold jewellery signifies that the jewellery is certified for its purity and quality. The BIS logo is not the only thing on the jewellery. It also includes the karat of the gold used, such as a 24kt piece of gold is 99.9% pure. It depends on whether you choose 22kt, 18kt or 14kt. It is not good to invest in gold jewellery without verifying it. This indicates the percentage of pure gold used in making the jewellery.
Why is this important? You can easily resell gold because hallmark jewellery reassures buyers of originality.
Price
It is important to know the jewellery price by its purity and the alloy and labour involved. While it is good to compare prices before you invest in the piece, purchasing from a trusted jeweller is also recommended.
Colour
There might be variations in the colour of gold. You can mix pure gold with other metals to create another colour, but yellow gold is the most in-demand. You can also choose from white or rose gold if you desire variety.
Weight
Before you pay for the gold, it is important to verify the weight. This is because you might pay a higher price if you add other stones.
Hallmarked Jewellery
Investing in gold jewellery can be a costly decision. It requires significant financial resources. Therefore, hallmarked jewellery is highly recommended. Hallmarked jewellery is not only a sign of purity, but it also provides a safe way to invest.
Invoicing
Ask for an invoice whenever you buy gold jewellery. Don’t be fooled by the Jeweller, who may claim that you don’t need it for future exchanges or reselling. Invoicing should include the breakdown of the karat and gold rates as of the date of purchase, the total weight and gemstones, and the BIS Hallmark number and GST.
Make smart decisions and use the following tips to ensure you only get the best when investing in gold jewellery.
The Jeweller’s reputation
The jewellers, particularly the well-known ones, would place their logo or abbreviation onto the gold ornament. This would allow the Jeweller to be identified. Without any inspections, the financer can identify the quality of the precious metal.
This may make it easy to obtain a loan against gold. However, the gold loan is only available if the pledged gold is sufficient. Therefore, the financier will need to verify the purity and quality of the gold. Then, the approved gold loan value per gram will be determined.
Avoid buying gold jewellery for investment.
As an alternative, interested persons might consider buying biscuits or gold coins. These can be a better investment option than gold jewellery. Gold jewellery comes with costs such as making fees, wastage and other charges. Extra money is required. You should invest in 24 karat gold rather than 22 karats.
Conclusion:
Most people searching for ways to get a gold loan are making a series of mistakes that may affect their loan. For example, they may not get approved for the loan for the first time, get a higher rate of interest than they were quoted, face more hidden fees, get a smaller loan than they were expecting, etc. All these things can make the loan process complex and difficult.
If you borrow money against your gold, you need to be 100% sure that you get a fair deal. However, do not let your emotions get the best of you. Rushing into a deal can make mistakes that will cost you. We hope this blog helped warn you away from these common mistakes to rest easy when choosing a gold loan lender.