Gold is extensively used in Indian weddings and big festivals such as Laxmi puja and Dussehra. People desire to buy gold in its purest form during these times. A gold coin, as compared to gold jewellery, is a direct manner of investing in gold. These coins range in purity from 22 to 24 carats and come in a variety of sizes including 1-100 grams. Authorised sellers selling these gold coins guarantee their purity. Retail investors in India like to buy gold coins, which may also be used to produce jewellery.
Top Reasons to Buy Gold Coins
Personal savings, family gifts, and corporate gifts are the three main reasons for purchasing gold coins. During festival and wedding seasons, gold coins are in high demand. Individual investors typically buy gold coins online to save money. The following are some of the reasons why you should consider purchasing gold coins:
Gold is a Tangible Asset
The benefit of carrying a tangible asset like gold coins is that it cannot be deleted or hacked. Gold coins, unlike bank accounts, brokerage accounts, and credit cards, are inaccessible to cybercriminals. It is a smart option to have some of your wealth in tangible form in today’s digital environment.
Gold Coins Have No Maintenance or Carrying Costs
Gold is a value dense metal. You may carry lakhs of rupees in gold in the palm of your hand. While a professional storage facility does charge a fee, you can always store or protect the gold in your own home. Gold coins, unlike real estate and other tangible assets, do not require maintenance. Simply lock your gold until you require it.
In Times of Crisis, Gold Coins Help Protect Your Capital
In a world where there are several threats, gold coins provide lesser risk, higher safety, and a higher upside than any other investment. In times of monetary, economic, and geographical crises, gold may protect your investment and even your level of living. Gold is strongly linked with protection. However, in addition to their longevity, gold coins provide huge profit potential even in today’s fast-changing monetary and economic system.
After reasons, let’s take a glance at the benefits of buying gold coins.
Benefits of Buying Gold Coins
Gold coins have long been a part of traditional investing plans, and here’s why:
- Gold tends to rise while other investment options fall. It helps to stabilise your investment.
- Gold coins act as a safety guard against inflation.
- You do not have to pay capital gains tax until you sell your gold coins.
- You can keep your gold investment private if that is important to you.
- Unlike gold jewellery, gold coins have no production costs, so their monetary value does not depreciate over time.
- The jewellery dealers will gladly accept the gold coins in exchange for the current market gold rate.
- Gold coins are extremely liquid investments. They are widely accepted.
- Gold coins are becoming more popular because of their various sizes, ease of sale, packaging, and foreign hallmarks.
Things to Consider While Buying Gold Coins
Remembering a few easy practices when purchasing gold coins can help you obtain the best value for your money.
The Gold Coin’s Purity
There are essentially two methods for determining the purity of gold coins. Fineness and karat. The term karat is more typically used to describe the purity of gold. 22 karat gold is made up of 22 parts gold and two parts other metals like silver or zinc. It increases the durability of gold when used to produce jewellery pieces. 24 karat gold is the purest kind of gold, containing 24 out of 24 parts gold. Another parameter used to determine gold purity is fineness. It can be defined as the actual weight of gold that is obtained after excluding impurities. For your consideration, a 22-karat gold coin is 92% pure while a 24-karat gold coin is 99.99% pure, in terms of fineness.
A hallmark or trademark certifies the purity of gold coins. It signifies that the gold coins are in compliance with Indian Standard requirements. At an approved hallmarking centre, gold is analysed and tested, and the metals used are verified to meet national and international purity and fineness criteria. Gold that has not been accredited by the BIS (Bureau of Indian Standards) may not be genuine. Certified gold coins can save you a lot of time and effort in attempting to authenticate the gold coin because the quality test is thoroughly performed for recognition.
It is best to buy gold coins online in tamper-resistant packaging. It is also advised not to open or scratch the package if you intend to resell it. Before you purchase a coin, look at its package. An intact packaging ensures that the product has not been tampered with.
So, these are the things that you, as a buyer/investor of gold, must be aware of. Besides, whenever you buy gold coins, make sure you choose a reputed seller.