How buying gold is going to be different this Dhanteras

A look at how to buy gold for Dhanteras this year.

How buying gold is going to be different this Dhanteras

In India, gold has never been just a piece of metal. Its significance holds a special place in Indian culture. Whether it’s a wedding, childbirth, or birthday, or a festival like Diwali or Dhanteras, gold jewellery is what makes every occasion complete. As you prepare to welcome Goddess Lakshmi home this Diwali and Dhanteras, here are some things to keep in mind when buying gold. 

How to invest in gold in India this Dhanteras

2020 has been full of surprises. With the COVID-19 pandemic and subsequent lockdowns, the markets remained closed for a long time. This brought the entire economy to a standstill, which in turn led to a rise in the price of many goods and services. Gold prices also skyrocketed, making it difficult for people to buy jewellery. However, gold continues to remain a great investment option.

Related: Factors That Affect Gold Prices In India

With Dhanteras approaching, now is a good time to purchase gold. However, because of COVID-19, entering a gold shop is not as simple as it once was. Here are some precautions you should take while buying gold during the pandemic:

  • Adhere to all safety measures: As exciting as it can be to shop for jewellery, make sure that you follow all COVID-19 protocols when you step into a store. Wear a mask at all times. Sanitise your hands and only try on products you intend to buy. Avoid touching the counter surface or jewellery items as far as possible.
  • Consider shopping online: Is it good to invest in gold online? There seems to be a lot of confusion when it comes to purchasing expensive items on the internet, but you can be rest assured that you can get a good deal online. Make sure to shop only from reliable and known jewellers. Check the price per gram of gold to avoid being overcharged. 
  • Take an appointment first: Many retailers are taking precautions, such as allowing customers only by appointment. This ensures that the store is able to maintain social distancing and prevent overcrowding in a closed space. Look for such brands when buying gold in person. 

How to shop for gold online on Dhanteras

When you set out to shop on this day, keep in mind that you must check the purity of gold before you finalise a purchase. Here’s how you can do this:

  • Look for a BIS hallmark: This seal ensures that the gold you are purchasing is of assured quality. It eliminates the chances of inferior materials being added to the metal and guarantees a great resale value for your gold. 
  • Check the karat: All jewellers stamp their products to certify their purity. For instance, gold jewellery can be 18 karat or 22 karat. This helps you identify the quality of the gold you are paying for. 
  • Calculate the purity: 24 karat gold is considered to be pure gold. If the gold you are buying is 24 karat, its purity will be 100%. However, if you are purchasing 22 karat or 18 karat gold, you need to divide this by 24 and then multiply it by 100 to ascertain its purity. For instance: 18/24 x 100 = 75%. So, 18 karat gold is 75% pure. Likewise, 22 karat gold is 91.66% pure. 
  • Buy only from verified jewellers: Well-known jewellery brands offer you more assurance and security. Not only do these brands offer great product designs, discounts, and returns; they also guarantee a great customer experience with little to no chance of fraud. 

Related: Buying Gold? 5 Things To Check Before You Buy

Gold investment in India 

While gold jewellery remains a popular choice of festival shopping, there are other ways to purchase gold as well. Digital Gold in a gold fund has become a popular choice for investors lately. This is ideal if you do not want to buy gold in its physical form but would rather keep it as an investment. 

Sovereign gold bonds (SGBs) are a good option with remarkable gold investment returns in India. If you are considering investing in SGBs, you must know that they offer returns as per the existing gold prices. This makes this gold investment scheme a viable option as it allows for capital appreciation with every rise in the price of gold. Moreover, the capital gains on maturity are tax-free. The bonds can be held in a Demat account for ease of accessibility. 

Related: Here's How You Can Hold Gold In Demat Form Just Like Equity Shares Or Mutual Fund Units

For mutual fund investors, Exchange Traded Funds (ETFs) are another way to invest in gold. Gold ETFs allow you to invest in gold electronically. It is similar to trading in stocks and offers better security, as most gold ETFs are regulated by the Securities and Exchange Board of India (SEBI).

Last words

Gold investment in India is an age-old tradition that accompanies every celebration, both big and small. However, with changing times, ways of acquiring gold have also changed - from buying coins and jewellery to investing in the precious metal digitally. Regardless of these changes, gold is as precious as ever and is something you should continue to invest in this Dhanteras. 

Also Read: Is Gold A Safe Investment Avenue In Bleak Tines Like These?


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