Precautions in buying gold

Gold is much precious today. It is the most precious among all metals. Many people buy gold according to view of investing. Since it is the most precious thing any should take precautions during buying gold and gold items like ornaments, coins, gold bars and other items. Pure gold is of 24 carat. But the jewellery is not made up of 24 carat because pure gold is flexible metal and ornaments cannot be made with flexible gold and hence some copper is mixed with gold to prepare jewellery. Generally ornaments are made up of 20-22 carat.

In rural areas and even in the most urban areas many people buy gold ornaments during the season of marriages and festivals like Dipawali etc. They generally have not full cash to buy gold and the buy ornaments with the goldsmith which resides in the same village. The goldsmith of the village mix more copper than that of hallmarked ornaments but they say to villagers that the ornament is of 24 carat and the ignorant people do not know more about the gold and the easily faith on the goldsmith. And hence they receive less and pay more that is they find gold of 18-20 carat but they pay the cost for 20-22 carat. Hence during buying gold anyone should take more precautions. The precautions during buying gold are as follows:-

1. From the investment point of view we should not buy gold jewellery because gold jewellery is not made up of 24 carat. For investment it is best to buy gold coins, gold bars and not jewellery. Anyone cannot find good price for ornaments because making and processing charges are also included into it.
2. If anyone wants to buy gold ornaments then he or she should have more care about it. He should always check that the shop from there he have to buy ornaments is either authenticated by the Bureau of Indian Standards or not. If the shop is not authenticated with Bureau of Indian Standards then we should not buy gold ornaments from that shop. We must buy gold from authenticated and standard shop. Never buy gold ornaments from rural goldsmiths and the rural shop. They all have 15-18 carat gold but take price of 22 carat gold and earn more from us.
3. After checking about the shop we must care about either the jewellery of the shops are hallmarked or not. If the jewellery is not hallmarked then we should not buy that gold jewellery. We should always buy hallmarked gold jewellery. Because hallmarked jewellery is of 22 carat and if we sell hallmarked jewellery then we find full price of gold jewellery according to market only services charges are deducted during selling of gold but if we buy jewellery from rural goldsmith and we sell that then we find 20 % less amount than comparison to which we have buy. Hence we can say that buying gold from rural goldsmith is barter.

Hence we should always buy gold from standard shop and hallmarked jewellery.

And according to view of investment we should always buy gold bars, gold coins not gold jewellery. These are the main precaution before buying gold.