Diwali and Dhanteras are considered auspicious occasions to buy gold, and many people invest in it for both its cultural and financial value. However, buying gold requires careful consideration. Avoid these 5 common mistakes to ensure you make the most of your gold purchase and avoid significant losses.
1. Mistake #1: Not Checking the Purity of Gold
· Always check the purity of the gold before making a purchase. gold purity is measured in karats (K), with 24K being the purest form of gold.
· Avoid buying gold without the BIS Hallmark—this guarantees that the gold is tested and conforms to purity standards.
· Not verifying purity can lead to buying impure gold, which has lower market value, leading to losses when you try to sell it later.
2. Mistake #2: Falling for Unbelievable Discounts
· During festive seasons like Diwali and Dhanteras, sellers may offer enticing discounts, but extremely low prices should raise red flags.
· While gold prices are influenced by global markets, too-good-to-be-true discounts often indicate substandard gold or even illegal gold being sold.
· Stick to established, certified jewelers and compare prices to avoid overpaying for inferior quality gold.
3. Mistake #3: Ignoring Additional Charges Like Making Charges and GST
· gold jewelry purchases often come with additional charges like making charges, GST, and Wastage Charges.
· Many buyers overlook these charges when comparing prices. This can significantly increase the final price.
· Clarify these extra charges upfront to avoid being caught off guard with a higher-than-expected bill at checkout.
4. Mistake #4: Buying gold Without Considering Market Trends
· gold prices fluctuate based on global market trends. Buying gold impulsively without tracking the price trend can result in purchasing when prices are high.
· Do some research into current gold prices or consult with a financial expert to understand the best time to buy.
· Avoid buying gold when prices are spiking right before festive seasons, as you might end up paying a premium that doesn’t reflect the long-term market trend.
5. Mistake #5: Not Considering Liquidity and Resale Value
· Not all gold jewelry is easy to liquidate at a fair price. Designer or heavily embellished jewelry can be difficult to resell, as the resale value is mostly based on the gold content.
· When investing in gold, consider buying gold coins, bars, or simple jewelry that are easier to sell later at the prevailing market rate.
· Avoid gold items with high making charges, as these might not give you the best returns if you decide to sell them in the future.
Bonus Tip: Buy from Trusted Sources
· Only purchase gold from reputable dealers or BIS-certified stores to ensure that the gold is genuine and complies with all legal standards.
· Always ask for a certificate of authenticity and verify the weight and purity to ensure you are getting the exact product you are paying for.
Final Thoughts: Smart gold Investment for a Prosperous Future
Gold is a timeless investment that not only holds sentimental value but also serves as a hedge against inflation. This diwali and Dhanteras, make sure you avoid these common mistakes and buy gold smartly to secure your financial future.
By verifying purity, being cautious of discounts, and considering the full costs, you can make an informed purchase that will bring you both prosperity and peace of mind in the years to come.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk..jpg)
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