Akshaya Tritiya 2022: What you need to know about buying gold today

Today, May 3, is Akshaya Tritiya. As per Hindu mythology, it is considered auspicious to buy gold jewellery on this day. There are various ways one can buy gold these days.

One can buy gold in the form of jewellery, coins or bars from a local jeweller. If you do not want to own gold in its physical form, then you can invest via Gold Exchange Traded Funds (ETFs), Gold mutual funds, Sovereign Gold Bonds (SGB) etc. Further, now one can buy gold from payment apps such as Google Pay, Paytm, PhonePe etc. in the form of ‘Digital Gold’. Buying of gold from these payment apps starts at Re 1.

If you are considering buying gold today, here’s what you need to know.

Buying from a local jeweller

If you planning to buy gold jewellery from your local jewellery store, then ensure that it is hallmarked. Effective from June 16, 2021, jewellers can only sell hallmarked gold.

A customer can check whether the gold is hallmarked by checking for three symbols on the gold ornament. These are: a) BIS logo, b) Purity grade and c) 6-digit Alphanumeric code, also knowns as Halmark Unique Identification (HUID) number.

If these three symbols are inscribed on the gold jewellery, then it is considered as hallmarked.

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Revised new signs of hallmarking

Bureau of Indian Standards (BIS) has developed the ‘BIS Care App’ which helps customers to verify the purity of gold ornament via its HUID.

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This app can help you verify purity of gold jewellery

Apart from gold jewellery, one can also buy coins and gold bars from the jeweller. Unlike gold jewellery which usually comes in 22KT, coins and gold bars can be bought for 24KT. It is important to know that 24KT is considered as the purest form of gold.

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7 things to know about buying gold coins

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Tips to buy gold bars

Once you have finalised the gold jewellery/coin you are going to buy, then it is important to know how the jeweller calculates the price of gold. What are the other charges that are levied?

Also Read:
How gold jewellery price is calculated

Buying in paper form

If you are buying gold for investment purposes, then you may be better off buying it in paper form. As per financial experts, investment in gold should not exceed 10% of the portfolio investment amount.

Buying gold in paper form is cheaper than buying gold jewellery. Buying gold in paper form involves trading, demat account charges and expense ratio. These charges are lower than the charges involved in buying physical gold (making charges, storing charges etc.)

Also Read:
7 watchouts before you invest in SGBs

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What you need to know about investing in Gold ETFs

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How to invest in gold via Google Pay?

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