How do gold purchasers select the best gold at a fair price?
The demand for the best gold at a reasonable rate has increased exponentially worldwide in recent years.
Why Buy Gold?
There are numerous benefits of investing in gold, including the fact that it is widely recognised for protecting your money against inflation. Gold prices are steady across the world, and you can buy it for roughly the same price wherever. For example, the gold price today in Vijaywada will be more or less similar in other cities as well.
Even if you have the option of buying them in electronic format now, it is still safe to acquire them in physical form. This lets you see your investment and store them as you choose in the future. There is no need to be concerned about investing in gold as a future asset because it has always held its worth in the market.
A few pointers have been enlisted below to assist you in buying the best quality of gold available in the market at a fair price.
Buying gold jewellery: Dos and Don’ts:
- Check for purity: When purchasing gold jewellery, it is important to ensure that it is pure. Looking for the BIS hallmark is the simplest approach to verify the purity. The official percentage of the metal is stated on a hallmarked item of jewellery. Bureau of Indian Standards (BIS), the certification and hallmarking organisation for gold jewellery.
- What method do you use to identify the hallmark?
Gold buyers must check the piece of jewellery with a hallmark. The jewellery will come with a certification number connected to it as well as a BIS stamp. A jeweller’s identifying mark and the year of hallmarking are also included. Look for the letter ‘K,’ which stands for karat and signifies the proportion of purity, to comprehend the caratage. If it says 22K, for example, it implies 91.6 per cent purity (percentage of gold content) or 916.
- Double-check the prices:
The purity of gold is used to determine its price. The market rate determines the price of gold every day. For example, the gold price today in Vijaywada will be different from yesterday. Consumers may see the daily bullion rates in all jewellery retailers. You should first check the bullion price and then reduce it depending on the purity of gold to get a feel of how the price is calculated. Let’s assume the cost of 10 grams of gold is $25,854 at the current bullion rate. The cost of 22K gold (91.6 percent purity) is expected to be about $23,682.
- Negotiate the making charges:
Jewellery requires labour, which is passed on as a cost by all jewellers in the form of making charges to the customer. Making fees are often calculated as a percentage of the current gold price. Thus, depending upon, for example, gold price today in Vijaywada will decide the amount of the making charge. But as these charges depend on the jeweller, you can always ask for discounts on making charges. The cost of producing a piece of jewellery with an elaborate design is greater, and can reach almost 25% of the cost of gold.
- Jewellery with stones should be avoided:
Gold buyers should avoid stone-studded jewellery since it is impossible to determine the quality of the precious or semi-precious stones placed in the gold. For jewellery with complicated patterns and motifs, you may have to spend extra on manufacturing costs. Always request a breakdown of the net gold and stones. If a piece of jewellery weighs 30 grams and 3 grams of that is stone, you should be aware of the calculation and pay accordingly.
- Selling to other jewellers is not a good idea:
It’s good to be aware of the resale worth of your jewellery. This is useful if you wish to switch an item for one with a superior design or sell it in an emergency. Most branded and local stores offer a buyback programme in which they will give you 100% of the value of your gold and some percentage of the making charges as per their policy. It’s also a better idea to return to the store where you purchased the jewellery.
Vijayawada is one of the major cities in Andhra Pradesh, and it’s a popular spot for gold buyers and sellers. Jewellers in the city have some of India’s best patterns and designs. In Vijayawada, there are a variety of locations where you may get gold jewellery.
Gold has already demonstrated that it is an excellent inflation hedge because inflation is increasing at a rate of 5-7 per cent each year, gold can provide similar returns.