A few steps to take before buying gold coins and bars in India

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If you are planning to invest in gold by purchasing gold coins or bars in India, there are a few steps that you should take to avoid losing money. In fact, here are a few ways in which you could maximize your savings when investing in gold coins or bars. Of course, it is always more prudent to invest in egold than physical gold. You can read on egold here.

Compare prices

Prices at the jewelry store is certainly cheaper that that at banks. Having said that, one can be rest assured on the purity of the gold coin or bar sold at the bank. If you are purchasing from a jewelry store, make sure it is from a reputed one.

Some stores buyback the coins/bars, while banks do not

If you are planning to sell the gold coins and bars, remember, if you have purchased it from a jewelry store, there are chances that the store would buy the same back from you. This might help in case of an emergency. Banks will never buyback the coins and bars.

Check for quality

Some of the banks offer gold bars that come with the highest tamper proof pack. These include tamper-proof certicards so that it can't be tampered easily. Also, look for 24K gold bars that are certified by Assayers appointed by LMBA in the form of ‘Assay Certification' for the highest quality of gold purity.

Gold prices have fallen in the last one year

Gold prices have fallen from Rs 32,000 in August last year to the current levels of Rs 27,000. If you are investing in large quantities you need to seek professional advise before investing.

Import duty maybe cut

Nobody can predict the exact movement of gold. If the NDA government reduces the import tariff on gold we could see gold prices come down. That may happen sooner than later, as India's current account deficit is under control.

Read more about: gold, gold bars, gold coins
Story first published: Monday, June 16, 2014, 8:36 [IST]
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