10 Tips For Buying Gold Coins The Smart Way
Gold coins are regarded as symbols of wealth and prosperity. These precious metal coins are considered one of the best assets to invest in, as it's a good way to save money and can act as an heirloom and effortless buying and selling. If you’re looking for a unique gift other than jewellery to blow the mind of your loved one, then there’s no better option than gold coins. They can add to the sparkle of many fiestas and wedding celebrations. After gold jewellery, there are many ways to wisely invest in gold, including gold coins. They are available in different sizes, from 1 gram to 50 grams.
However, buying gold coins should not be done hastily. It should be done after careful consideration of every aspect of buying gold coins. They are as follows:
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Purity Of Gold Coin
Prior to making a leap, be sure to understand the gold coin purity. Karat and fineness are the different ways to calculate the purity of gold coins. Gold coins are available in different carats, from 22kt to 24kt. 24 kt are adored by investors as they are 99.99% pure. Whereas 22-karat gold coins contain 91.67% pure gold and have an alloy of other metals up to 8.33%. The alloys added enhance the durability of gold for crafting jewellery.
Fineness is the other way to calculate the purity of gold coins. It’s been said that although 99.99% gold comprises some dirt that even the jewellery maker can't get rid of. The higher the fineness of a gold coin, the more expensive it is. Although no one buys 24kt gold jewellery, you can invest in 24kt gold coins. Gold coins can be made of different carats of gold, ranging from gold coins 24k, 22k, and 18k. However, people looking to make an investment in gold coins usually go for 24kt or 22kt.
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Weight Of Gold Coin
Prior to shopping for your gold coins, it’s important to understand their proper weight. Jewellery makers craft gold coins worth up to 100 grams. However, people shop for gold coins below 10 grams. Even though you can pick gold coins of your choice in any weight or denomination, whether it's available or not depends on the jewellery. Jewellers also made gold coins 1 gram, 2g, 4g and 8g available.
Hallmark
While shopping for gold coins, purity must not be your only priority; see if your coins come with a hallmark or not. A hallmark on gold is a mark or stamp that indicates its quality and authenticity. It's usually certified by the Bureau of Indian Standards. The hallmark code in gold coins usually contains the following:
The BIS logo
The purity of gold coin
The identification mark of the jewellery
HUID number
Verifying the hallmark on gold coins lets you save time and effort otherwise trying to ascertain their purity.
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Making Charges
When compared to shopping for gold jewellery, shopping for gold coins is affordable and accessible. All the difference lies in making charges of gold. You can even buy gold coins in as low as just 0.5 grams with fewer making charges as opposed to jewellery with high making charges based on their craftsmanship. Wondering what the making charges of gold coins are? It’s 8-16%.
Proper Billing
Make sure you end your shopping by securing an in-detail bill from the jewellery you’re shopping from that outlines the gold coins price, making charges, weight, purity level, and the details of the coin, amongst others.
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Ease of Selling
Avoid shopping for gold coins from a bank, as they don’t take back the coins according to the instructions of the Reserve Bank of India. Therefore, it’s a good idea to shop for gold coins from certified jewellery stores or trustworthy online shops. Keep in mind that you will benefit from a low resale value if you shop from one jewellery store and sell your gold coins to another. The reason is that the 2nd jewellery store will charge you only for the gold.
Packaging
Just like ensuring the purity and hallmark of gold coins, it’s equally important to shop your gold coins in secure, hard-to-access packaging to ensure safety of your prized possessions. It will safeguard your gold coins from being stolen or any sort of damage or imitation. If you wish to resell your gold coins, avoid opening the tamperproof packaging. This is because packaging ensures the reliability and purity of the precious metal coins.
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Consider Storage and Safety
Considering the great price of gold, storing your gold coins right is important for their safety. However, rest assured that your coins are safe by either choosing home safes or bank lockers. A lot of Indians choose to store their valuables in tamper-proof safes. But, home safes come with a risk factor, because if you don’t implement security measures, it comes with a price!
Another option is the convenience of bank lockers. Safe deposit lockers are offered by banks, and they charge a fee every year. You can safely store your valuables in a bank locker. However, be mindful that you can’t always access them. Therefore, your choice of storage is vital for safeguarding your investment.
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Understand Tax Implications
The total gold coins rate includes certain taxes as well. They are GST and capital gains tax. When you buy gold, be mindful that you have to pay a 3% GST as well. Next is capital gains tax. Profits from the sale of gold coins are taxable as capital gains. Short-term capital gains are added to your total income and taxed in accordance with your applicable income tax bracket if you sell the gold within three years of buying it.
With the benefit of indexation, profits on holdings longer than three years are taxed at a flat rate of 20%. One of the most crucial things to think about when purchasing gold coins is your tax responsibilities.
Monitor Gold Coin Prices and Market Trends
Many factors influence the gold coins price, and they are global gold prices, exchange rates, local market conditions, inflation rates, and more. Therefore, prior to buying gold coins, be sure to watch the market and the trends in its prices. The prices shoot up during the festival times. It’s wise to shop for gold coins when the gold prices are down and when there is a decline in its demand. Do not make quick decisions in terms of buying, and think of gold coins as your tool to overcome any market volatility.
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Check the Product
When you buy a physical gold coin, you can literally see, view, and check them closely. A reliable jewellery will offer you the vital details so that you can understand the products they provide. Having said so, you need to be wary of the above-mentioned things if you’re buying something from a jewellery shop or if you go for gold coins buy online.
Human-made or Machine-made Coins
The growth of technology has a great impact on the jewellery industry as well. When compared to the human-made gold coins, the machine-made gold coins come with a low price tag, as the former option needs labour efforts and costs. That makes human-made coins more expensive.
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Shopping for gold coins can be an excellent idea if you’re looking to grow your investment portfolio. Gold coins are always considered to be a safe investment idea, considering the price stability and diversification, among others, when compared to other investment options. When compared to investing in gold jewellery, the benefits of gold coins investment are plenty, as outlined above.
With ease of monetisation, investment flexibility, and excellent return on investment, gold coins for investment offered by Jos Alukkas are one of the best means to safeguard your wealth and benefit from handsome returns. Therefore, if you’re looking to elevate your investment strategy, then there’s no better option than our gold coins. Make your smart investment move with Jos Alukkas!
October 10, 2024
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