Buying gold this Diwali? 5 tips you should consider before investing
gold buying almost synonymous. People have been buying and investing in gold year after year and generations after generations. The attractiveness of the returns on yellow metal is well established as it is also considered a good hedge against inflation and a good asset class to diversify your investment risk.
While this gold-buying tradition may be very old, it has faced concerns regarding safety, purity, authenticity, taxation and yield of the yellow metal.
If you are planning to buy or invest in gold this Diwali, here are some smart tips to help you get the investment right.
Check the authenticity and purity of physical gold
If you are planning to buy gold jewellery, remember that hallmarking is mandatory for purity levels of 24 carats, 23 carats, 22, 20, 18 and 14 carats.
“One should bear in mind the BIS (Bureau of Indian Standards) mark which is a sign of the hallmark indicating purity and the fineness number,” says Colin Shah, MD, Kama Jewelry. “The gold jewellery must be assessed to check its purity in order to put the BIS logo on it. Keep an eye out for the jeweller’s 's mark as it indicates where the gold is purchased from.
The BIS’s website has a list of certified jewellers.”
Also Read: Three signs to check for purity of gold of BIS hallmarked jewellery
If you are buying bullion gold, you need to be very sure about the credibility and reputation of the seller, as hallmarking is not mandatory in this category. To be certain about the quality of gold, insist on a bill for the purchase. Remember that an authentic bill will include GST at the rate of 3%.
Also Read: Dhanteras 2023 Gold buying: 21% return over last year, is it a good time to invest in Gold?
Keep physical gold exposure under a limit
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