4 Tips For Investing In Gold, In October

Gold rates have started to gain in October internationally, compared to September when the month's average prices fell by 4.08%. So, investors and traders are looking forward to the metal's upcoming range. In India, before the festive season common people, along with traditional investors are also having a keen interest because gold jewellers offer discounts on making charges during this time. Buyers are tracking the daily prices and trying to understand what will be the best time to purchase the precious metal. Here are 4 points listed to remember before investing in gold, this month.

Concerns About Gold Rates

The first point will certainly be on the gold pricing ground. Gold rates have again reached above $1760/oz prices in the international markets so, Indian gold rates are gaining again and 22 carat gold prices are staying around Rs. 45,700/10 grams. Gold prices depend on the US dollar index, US Fed's monetary policy, and the country's economic developments. Yesterday the Institute for Supply Management (ISM), US released the service sector data which has shown 'stronger than expected momentum in September'. The non-manufacturing index showed a reading of 61.9% in September, which is higher than August's reading of 61.7%. The forecasts for the same was around 59.9%, but the figures improved in reality.

US Fed Tapering Timeline

However, the gold prices might be under pressure for some time in the latter half of October, as the investors will be concerned about the US Federal Reserve tapering timeline. But importantly, September's employment data is yet to be released which will influence US Federal Reserve to fix their tapering timeline. An early tapering will drag gold rates down, and vice versa. Already US's inflation is staying at 30 years' high level at 4.3%. This is an affirmative time for gold prices, but the situation can flip at any time. So, investors and buyers should follow the US employment data next week to have a better idea about upcoming gold rates, in October. Present US Debt ceiling is another point an investor should follow because it will influence the US Dollar index.

Choose Virtual Gold

This point is for the investors who are interested to invest in gold for diversifying their portfolio and make better returns. These investors should always choose virtual gold over physical gold. Virtual gold options like gold ETF, Sovereign Gold Bond (SGB) by RBI, digital gold, gold funds are very safe gold options just like other company stocks and mutual funds. If you do not have any compulsion to buy gold jewelleries, then certainly opt for virtual gold. You can buy gold ETF from your mobile mutual fund app, and digital gold any time from Google pay or PhonePe. Additionally, the RBI will also release SGB purchase notice. Virtual gold offers you liquidity at any time, and also you can enter and exit from the investment according to your preferences.

Gold Hallmarking Is Important

This point is for those who are looking forward to particularly gold jewelleries. You must be sure that you are buying Hallmarked gold jewelleries. Many people will be buying gold for auspicious occasions like marriage, etc. This should be noted by them. Hallmark determines the purity of gold like 18 carat, 22 carat, or 24 carat. At present, the union government has implemented stringent regulations regarding gold hallmarking and directed all the jewellers to hallmark their golds, for better customer assurance. If you are not buying hallmarked gold jewelleries, then you might face losses at the time of resale. Later if you need liquidity and want to sell your gold at the market prices, then you might not get the same if your gold jewelleries are not hallmarked and filled with impurities. Hallmark is a government BIS mark that will give you full assurance of your jewellery's authenticity.