It's the time of the year when individuals are looking to buy gold. In fact, the precious metal has already rallied a great deal this year and consumers are already paying a great price. It's important to be careful while making purchases and keep a few things in mind. Here are 5 things that you need to keep in mind before buying gold this season.
1) Buy hallmarked jewellery
The safest form of jewellery to buy is the hallmarked jewellery. The hallmark of the Bureau of Indian Standards ensures the purity of gold. We all know that gold can come in various forms of purity like 18 karats and lower, 22 karats and 24 karats.
You do not want to buy 22 karats jewellery, which actually has purity of less than 22 karats. It is better to buy hallmarked jewellery so that you are ensured of the purity.
2) Bargain on the making charges
If you are buying gold jewellery, it is very important to know the making charges. It is even more necessary to bargain and reduce the making charges. Remember, that these charges can form upto 30 per cent of your jewellery costs. It is very important that you request a reduction here.
3) Check the price of gold
It is very difficult to predict whether gold prices would fall. Therefore, if you are planning to wait and buy, you cannot be sure that prices would dip. However, what you can do is make enquiry with a few jewellers to see if price reduction is a possibility.
While generally speaking prices are standardized, there could be some variations. Check gold rates in your city before purchasing.
4) Don't forget to ask for an invoice
An invoice is necessary for a number of things. If you sell the same gold at a profit after a few years, you would want to know the purchase price to calculate the capital gains tax. Apart from this, the invoice is also helpful if a dispute arises in the near future. An invoice is a must for your records as well.
5) Important to check the weight
It's also important to check the weight of gold, in case there are studded items. When at the jeweller, makes sure you ask and ask and ask.
This is because gold is not like buying grocery. It has become very valuable and the cost is extremely high. Make sure you do adequate research before buying.