Gold is a tangible asset and a very popular source of investment in the Indian market. While buying gold, people mostly prefer to buy gold coins because they are more affordable than gold jewelry. Hence, investing in gold coins is one of the best ways to save money without any risk involved in it.
For investment there are many other loan options available, it has some risks involved. Whereas, gold investments stay assured throughout life and also give good returns in the future. But before directly buying gold coins you must know certain things that are essential to buy gold coins.
Here are some important things you need to consider while buying a gold coin
Purity of gold: Naturally, gold is the softest metal that cannot be used without adding other alloys or metals such as copper, silver, or zinc. The purity of gold signifies the amount of adulteration that has been done to gold in order to provide strength and durability. Therefore, gold purity is measured in karats. For example, a 24-karat gold coin means the 24 parts of the composition of the coin is pure gold.
Hallmarking: The main factor while buying gold coins is that it can make your purchase a good option for investment. Therefore, gold coins should be stamped with a BIS hallmark which certifies the level of purity. The hallmark removes the risk of fraud while buying gold coins or gold jewelry.
Denominations: Gold coins in India are available in the range of 5 grams, 10 grams and 20 grams. And sometimes the size of the gold coins is customized as per the buyer’s requirements and budget.
Making charges: As said earlier, gold coins are affordable compared to gold jewelry. The reason behind it is making charges. Making charges on gold coins is less expensive than buying gold jewelry. Therefore, buying gold coins is a good investment option to accumulate gold wealth for a secure future.
Ease of selling gold coins: Now when you have purchased gold coins spend your hard-earned money. It should be sold at a proper gold rate only so that you don’t incur a loss. Apart from these, selling gold coins has certain clauses that one should know before buying a gold coin. Suppose, you buy a gold coin from a bank that can’t accept it back as per the Reserve Bank of India’s policy. Therefore, it is recommended to buy gold coins from a good gold dealer like Augmont Gold For All.
Advantages of buying gold coins:
- Gold tends to rise when other investments fall, thereby stabilizing your portfolio.
- Gold is a secure option against inflation.
- You aren’t required to pay capital gains tax until you sell.
- During the worst financial scenario gold coins can become your savior to gain you money.
Is buying gold coins a good investment?
If you decide to purchase gold coins, you should do so from a reputable dealer or financial institution. You must be thinking about where you will get a reliable dealer. So, Augmont Gold For All is the place where you can buy gold coins or you can purchase gold coins online too. When you want to buy a gold coin it is better to buy from a reliable dealer only. So, you will get a good quality of gold and while selling you don’t need to face any problems.
Why do people buy gold coins?
Gold coins are available in the range of 5 grams, 10 grams and 20 grams or as per the customer’s choice. These coins can be purchased at an affordable price too. So, people who want to invest in gold in smaller denominations prefer buying gold coins. Gold coins are also a good option for gifting purposes on special occasions and corporate events.
Gold coins against traditional investment method:
Most investment methods, such as stocks or bonds, only provide a return on investment if the investor is patient. It takes time to develop and build up the return amount. In the case of mutual funds, there is also a good chance that you will lose a significant portion of your principal if your company’s stock falls. Gold, on the other hand, will always give you hefty returns depending on the market rate of the metal at the time. And, because the price of gold has rarely fallen, you can be confident that your investment will not lose money.
An investor has a few options for purchasing gold coins at this time. Banks and jewelers are two prominent examples. While most banks will sell and accept gold at market value (with a small service fee, of course), jewelers have been known to make certain reservations. Many jewelers will not even accept gold coins sold from home at full market value. Furthermore, when jewelry and coins are compared, the former may lose value over time. Coins, on the other hand, only increase in value over time.
Choosing the Best Dealer, Online or Local: In the market there are many gold providers so, naturally, a question arises where to buy authentic gold. If you want to buy a gold coin Augmont Gold For All is a trustworthy brand for all gold requirements. They also have the option to buy gold online. Augmont Gold For All is providing quality gold as well as the best services to its customers.
What time of year should someone buy gold or gold coins?
Notably, the study discovered that there are times to buy gold before its price rises. Gold prices rise during the first two months of the year on average. The price of gold then falls during the spring and summer before rising again in the fall.
The best times of year to buy gold are early January, March, and early April, or from mid-June to early July.
Gold prices rise during the first two months of the year on average. The price of gold then falls during the spring and summer before rising again in the fall.
Remember that the price of gold is determined by supply and demand. That means that if you buy during an active buying period, all of the competition raises the price.
Unlike paper currency, coins, or other assets, gold has retained its value over time. People see gold as a means of transferring and preserving wealth from one generation to the next. People have valued the unique properties of precious metals since antiquity. Because gold does not corrode and can be melted over a standard flame, it is simple to work with and stamp as a coin. Furthermore, unlike other elements, gold has a distinct and beautiful color scheme.