Top 7 Tips For Buying Gold This Dhanteras

Posted on: Oct 22, 2024 | 3 mins | Written by: HDFC ERGO Team

Top 7 Tips For Buying Gold This Dhanteras

Gold is one of the most valuable metals, both monetarily and emotionally. Indians value gold very highly and consider it auspicious. As a result, you will find many people buying gold on important occasions such as weddings, ceremonies and special religious events like Dhanteras. It is commonly believed in India that buying gold on Dhanteras enhances your investment and makes you wealthier. This is why people queue up outside jewellery stores to purchase gold jewellery on this day. If you, too are planning to get some beautiful gold items this Dhanteras, we have the best tips for you. From finding the most attractive pieces to securing them with gold insurance, we tell you about everything. Take a look.

Top 7 tips to help you choose the perfect gold items on Dhanteras

Listed below are some of the most effective guidelines to remember when you go gold shopping:

1. Check the purity

First and foremost, you need to check the purity of the gold. Gold is available in 24 karats, 22 karats, 18 karats and 14 karats. The higher the purity, the more expensive it is. You need to know what type of gold you want. Many traditional designs are made only in 24-karat gold, while modern designs are better suited in 14 karats. To understand what you will buy, you need to make an investment plan beforehand. Include the purpose of your purchase. If you wish to purchase gold purely as an investment, look for the highest purity. If, however, you wish to purchase jewellery for regular use, you may opt for a lower karat marking. You also have to consider your budget and how much you can spend on the purchase.

2. Verify the making charges

Different jewellers offer different making charges. The making charge is important as many gold ornaments are handcrafted, thereby pushing up the charge. This gets added to the overall cost of the jewellery you buy. Do your research and buy from the shop that charges a reasonable making charge. However, in doing so, you should not compromise on the quality and design of the gold. It is advisable to get gold from a trusted jeweller who gives you the BIS (Bureau of Indian Standards) hallmark certificate. This ensures the purity of the gold. Remember, gold is not just a possession but also an investment - so you should be very careful about all aspects when you buy it.

3. Check the weight of additional gems

You often find gold jewellery that is adorned with additional gems like diamonds and emeralds. The price of these precious stones is different from that of gold. However, at times, the jewellers charge you based on the weight of the entire piece. Hence, you should be mindful when you buy the ornament. Verify the exact weight of the gold and the weight of the added gems. Ensure the calculation has been done based on the actual weight of the gold used. This will help you get a good and fair deal, and it will also aid you when you resell.

4. Check the making process

As stated, a lot of gold items are handcrafted, thereby pushing up their prices. These days, however, many items are machine-made. The simple, modern designs, generally used for regular wear, are mostly machine churned. You should check the making process when you shop for gold. The machine-made items are less expensive, as compared to handmade items. The jeweller should ask for the correct making charges based on the mode of making. A lot of people who want to buy a token item on Dhanteras, opt for the machine-made designs as they are economical and can be used frequently as well.

5. Look for deals and discounts

Gold prices fluctuate almost on a daily basis. This happens due to the fluctuations in the global markets and the rise of gold sales across the world. Gold prices also go up when there is a greater demand such as during the wedding season or during the festival time. However, some jewellers offer attractive deals and discounts. For example, you can select an item, freeze the cost on a prior day and then make the symbolic purchase on Dhanteras. Also, heavy discounts are offered on the making charges, thereby reducing the overall cost of the ornament. Keep an eye out for all such deals and discounts to get the best value on Dhanteras.

6. Check the resale value

Gold is often procured as an investment, so you need to be aware of the resale value of the gold item you buy. Most of the reputed jewellers these days give you a guaranteed buyback offer where you can sell the item back to them at the best price. Check with your jeweller about the resale offers. Try getting simple designs, as during buyback, the weight of the gold will be majorly considered and not the making charges. Get an item that will fetch you the highest resale value. However, if you wish to buy purely for personal use, then do not compromise on the design.

7. Consider getting gold bars

A lot of people these days get gold bars instead of gold jewellery pieces. A bar is just a pure block of gold without any additional charges. It makes for a great investment. The price appreciates, and you get the full value back when you sell it off. If you are buying gold as an auspicious symbol on the pious occasion of Dhanteras and do not intend to use it personally, consider getting a gold bar. You can choose a bar based on your requirements and preferences. Get it in the purest form and in a size that suits you, and you will end up with a great investment.

8. Consider insurance coverage

Gold is expensive so, you need to keep it well-protected at all times. To do this, you can opt for a bank locker. However, that has its own limitations. If you wish to keep it safe in your own house, look to get a property insurance policy that covers the valuables in your house. A lot of modern-day home insurance plans have inclusions for valuable coverage, including gold coverage. If your gold pieces are lost, stolen, or damaged in a fire, the insurance provider compensates you for the loss. This is a wise and effective way to keep your gold safe in your own house and use it as and when you need to.

The final word

Shop for gold this Dhanteras to blessings of the Almighty during the festive season. Keep all the tips mentioned above in mind, and you will surely be able to make a very good purchase. Once done, consider securing your precious jewellery with good gold insurance coverage to keep it safe for a long time.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

This Diwali Insure Your Home and Wish Home a Happy Diwali

This Diwali go beyond decoration, and secure your home with home shield cover

All That You Need to Do to Make Diwali Safer for Your Family

Festive Time: But is Your Home Insured against Theft and Fire Hazards?