Compared to gold coins and jewellery, bars can come at a lesser cost. However, there are a few things you should consider before you buy them. Read on to find out what they are.
1. Purity: Make sure what you want is what you get — do ensure that the gold you are buying is pure. Karat is the unit used to measure the purity of gold. The higher the karat, the purer the gold is and the higher will be the price you will have to pay. 24 Karat gold is considered as the purest form of gold. However, 24 Karat gold is very soft for making jewellery. For making jewellery, 22 and 18 karat gold is considered. In case of 24k gold, all 24 parts in the gold are pure gold with extremely low level of impurities. If you are purchasing for investment purpose, 24K suits else opt for 22K if you intend to use it for your own consumption.
2. Refinery – While purchasing, it helps to know the refinery from where the gold bar has been refined. Purchasing gold bars which have been refined at popular refineries ensures the highest level of purity. Bangalore Refinery and MMTC-PAMP (a joint venture between public sector MMTC and Switzerland’s PAMP SA) are two such refineries in India.
3. Tolerance level: Ask about the weight and purity tolerance level (variation in purity) while purchasing. Some gold bars may have a +/- tolerance levels while some bars may come with NIL negative weight tolerance and NIL negative purity tolerance, thus assuring that the customer always receives right value for what is paid for.
4. Fineness: Fineness shows the purity of precious metals by parts per thousand rather than karats. Fineness is another way of expressing the precious metal content of gold jewellery. When gold is refined to a fineness level of 999.9 parts per thousand it is stated as 999.9.
According to the World Gold Council website, 24KT should be 1.0, i.e., 24/24, but there are likely to be slight impurities in gold, so it can only be refined to a fineness level of 999.9 parts of thousand.
5. Denomination: Choosing to invest in lower denominations helps to maintain liquidity when you need it. One should opt for gold bars with lower denominations. The denomination of gold bars can be as low as 5gm and also available in 10g, 50g, 100g even up to 1 kg. The price of higher denomination may, however, be less as it commands lesser premium.
6. Certification: The benchmark to follow while buying gold online is to look for Hallmark certification. It is imperative for you to ensure that the gold you buy is from a BIS registered (Bureau of Indian Standards) jeweller. And the ornament/coin/bar carries the BIS hallmark. There’s a list of jewellers selling BIS-certified jewellery on the BIS website
7. Packaging: If the gold bar is packaged as is the case when you buy it online, don’t take it out of the packaging. Keeping the packaging intact helps in maintaining the purity of the gold bar and also makes it easier to sell.
8. Return policy: Always check for the website or seller’s return or buyback policy while buying gold online. These days most big gold chains have their online stores and they offer both returns and exchange. However, the exchange policy of gold has stricter terms and conditions as compared to other items sold online. So, it is important to go through the terms and conditions carefully before making your purchase decision.
- Front Page
- Pure Politics
- ET Markets
SBI Looks to Raise up to $2b in FY24 via Overseas Bond Sales
State Bank of India (SBI), the country’s biggest government-owned entity by market capitalisation, Monday said it plans to garner up to $2 billion in FY24 through overseas bond sales, likely dwarfing last year’s foreign fund-raises by three of its closest private-sector rivals including HDFC Bank.
Zerodha Expects 20% Jump in FY23 Revenue, Profit
India’s largest broker Zerodha expects its revenue and profit to have expanded by a fifth in the fiscal year ending March 2023. But there is a major correction ahead for the stock broking firm in the current fiscal, according to its founder and chief executive officer Nithin Kamath.
Reliance, WH Smith, Others Show Interest in Future Retail
Reliance Retail, WH Smith, a consortium led by Boston-based restructuring firm Gordon Brothers, and April Moon Retail, in which Adani Group owns a stake, are among 49 contenders that have submitted expressions of interest (EoIs) for Future Retail Ltd.
(Your legal guide on estate planning, inheritance, will and more.)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
ETPrime stories of the day
7 mins read
The race for next oil: why India must build a secure, sustainable critical-minerals supply chain
6 mins read
Tale of two anti-obesity drugs for diabetics: Does the euphoria signal an end to the chronic disease?
12 mins read