They say that the dust on gold doesn’t change its nature and it is nothing but the truth. It is for this very reason that smart buyers prefer spending on gold over any other commodity when it comes to thrift and saving.
Many of you would love the idea of buying designer gold jewelry for the sake of investment but going for gold coins is the wisest thing you can do for yourself.
And why so? Because you don’t want to lose a good amount of money while reselling your gold. Buying gold jewelry is often more expensive than buying gold coins because jewelers are often adding additional costs such as manufacturing and overhead expenses.
Not just that, there are many other factors that affect the value that we fetch on investing in gold and considering them while making a decision, only makes it an informed one.
1.The Right Time to Buy
Before thinking about any other factor, it is important to note that gold prices fluctuate on a daily basis and buying it on a day when it is hitting low is generally advisable. When purchased at a lower price, gold investment can prove to be fruitful for the rise in its price will only appreciate the value of the money that you’ve spent.
2. The Purity Scale
The purity of gold is measured in karats where the higher the karats, the purer is the gold. The purest form of gold available for buyers is measured to be 24 karat. Coins, bars or jewelry with a 24 karat stamp have at least 99.9% of gold with little to no trace of any other metal.
This also means that buyers should be careful when dealing with sellers who claim to sell 25 karats or 26 karats gold items.
Pure or 24 karat gold is suitable for coins and bars and is too soft to make durable jewelry from. This is the reason why 22 karat gold jewelry is comparatively durable.
22 karat gold is 91.67% gold with the remaining percentage made up of an alloy of metals that are fused to make jewelry firm and durable.
Buyers interested in plain gold jewelry should consider 22 karat gold because it is not suitable for diamond-embellished or any other stone-studded patterns.
For such heavily studded gold designs, 18 karat is the more appropriate purity with 75% gold and 25% other metals which makes it possible to firmly set stones in it.
Other well-known karats available in the market are 14K and 10K with 58.3% and 41.75% of gold in them respectively. They are often mixed with metals such silver, zinc, nickel and other alloys.
3. The Hallmark Stamp
When buying jewelry, always watch out for the hallmark stamps that are printed on the inside of the items or around their clasps. These stamps often show the karat and give information about the fineness and the purity of the gold. It may also have the stamp of the assaying authority that certifies gold in your country.
Buying hallmarked jewelry is a safe choice as it makes the consumer feel confident about the purity and makes reselling easy for hallmarked gold as opposed to unmarked items.
4. Machine-Made vs. Hand-Made
Hand-made jewelry is considered exquisite and is preferred by buyers who like personalized pieces of jewelry. The makers often put in their personal time and effort to create aesthetic jewelry items and so are valued greatly by their owners.
On the other hand, machine-made jewelry is often created with efficiency and precision and is greatly cherished by buyers who have an eye for functionality and detail.
When choosing your gold jewelry, it is imperative to know how it is made and then decide as per one’s personal choice.
5. What Making Charges Do
Different gold sellers charge differently for the making of the jewelry that you purchase. The more intricate the design of your gold necklace, the higher the manufacturing costs will be.
In short, when paying for gold you need to keep in mind the extra charges that you will have to pay along with the actual price of gold content.
These charges vary from seller to seller and are important to note because when you are selling
jewelry to gold buyers, they will most likely not factor in the design and intricacy of your gold as they will often be making an offer based on the gold content alone.
6. Denominations of Gold Coins
Always keep in mind the amount of money that you wish to invest through gold coins, you can choose from the various denominations of gold coins available.
The standard version coin in Canada is one troy ounce or 31.10 grams. Other denominations include 1 gram, 1/25 oz., 1/20 oz., 1/10 oz., 1/4oz. and 1/2 oz. respectively.
7. The Way it is Packaged
If you are planning to buy gold online, it is imperative to check the packaging once you receive your product as once the payment is done and the bill received, there are chances that you may not be able to claim a refund on items that have tempered packaging.
8. The Source of the Gold
Buying gold these days can be as simple as ordering food from home. One has a variety of alternatives to choose from.
From local gold shops to standardized chain stores, there are numerous sellers available offering a huge range of designs, offers and discounts. For many, major banks are a safe place to buy gold as they are often secure and trustworthy.
Most of the offline stores selling gold offer similar gold items on their websites making it easier for customers to choose from.
Almost all sellers have certifications of authenticity that permit them to sell gold and can be easily accessed by the customers for their satisfaction.
9. Ease of Selling
The decision to buy gold for the purpose of investment should be made considering the manner in which it can fetch back value. Gold coins are easy to sell back as compared to gold jewelry for a portion of the jewelry price includes high manufacturing costs, which is not the case in coins as making charges are comparatively less. As a result, coins are more likely to give more returns as compared to gold jewelry where high making charges deducted during resale can cause large losses in your gold value.
The decision to spend on gold should always be careful and well thought out as it involves a large amount of your hard-earned money. Going about it the wrong way can cause huge losses. Always be mindful of what to buy and where to buy it, and always keep a pulse on the market price!