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Dhanteras 2019: Five things to know before buying gold

With gold's value dropping Rs 2,000 from last month's high of Rs 40,000, this week could be the right time for stocking up on the yellow metal

twitter-logo BusinessToday.In        Last Updated: October 25, 2019  | 13:16 IST
Buying gold on Dhanteras? Keep these 5 things in mind
Gold as a precious metal worldwide offers liquidity to its owners and is opted as an investment

Dhanteras, the festival of wealth, is being celebrated across the country today. It is considered an auspicious time to invest in gold. The occasion also marks the start of the Hindu festival Diwali. Gold as a precious metal worldwide offers liquidity to its owners and is opted as an investment. With gold's value dropping Rs 2,000 from last month's high of Rs 40,000, this week could be the right time for stocking up on the yellow metal.

Here are key listed things to keep in mind before investing in gold jewellery:

Bureau of Indian Standards (BIS) hallmark

It is advisable for a buyer to purchase hallmarked jewellery. The Indian government has identified the Bureau of Indian Standards (BIS) hallmark as the sole agency for certifying gold. This certification helps in identifying the correct value of the jewellery.

Purity of the metal

Gold prices are decided according to the purity of the metal. The purity of gold is denoted in karats, with 24 karat gold being 99.9% pure and 22 karat gold 92% pure. Most ornaments are made with 18 karat gold as it is relatively more durable. It has 18 parts gold and 6 parts of one or more additional metals, making it 75 % gold.

Associated costs

As gold carries investment value, one should always keep in mind associated costs like locker rentals, erosion, ease of reselling and making charges.  

Exact gold prices

Besides the purity of gold, the price of gold also depends upon market rates that change on a daily basis. All jewellery stores pan-India display the daily bullion rates for consumers, that are usually varied across cities. Buyers are advised to first look at the bullion price and then discount it based on the purity of gold. After falling for three days in a row, gold prices rose by Rs 144 to Rs 38,025 per 10 gram on October 23. It closed flat at Rs 37,881 on October 22.

Check gold weight

Precious stones like diamond and emerald that are added to gold jewellery make them heavier by weight. As jewellers weigh the studded jewellery in entirety, it is advised to check the weight of gold individually in the purchased jewellery. With heavier gold jewellery pieces costing more, the buyer might end up paying for the gold which is not actually there. Whereas, when a piece of gold jewellery is resold, only the actual gold weight is considered after removing the studded stones.

Dhanteras 2019: Gold prices float around Rs 38,000 in Diwali week

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