People making investments in gold coins are increasing every day. You can get gold from online websites or offline stores. However, buying gold is not the same as buying groceries; you need to consider many factors. For instance, you shouldn’t ever trust any dealer without doing proper research.
Check out below a list of factors you should note.
It is very crucial to know the purity of the gold before purchasing it. You should measure gold purity in Karats. The 99.9% pure gold has 24K, and 92% pure gold has 22K.
The fluid nature of the purest gold makes it unsuitable for crafting into jewelry; thus, 22K, 18K, and 14K gold are primarily sold in the market and are used to make gold ornaments.
However, if you need a gold coin, you should consider purchasing 24K.
Marking charges include the labor involved while creating gold. You should determine it by the type of gold ornament and craftsmanship. Making charges ranges from 8% to 16%.
Most people prefer machine-made gold coins because manufacturing charges are lower compared to artificial ones. Every gold seller charges differently.
When buying gold, you should check for the hallmark since it carries the official proportion of the gold used. Hallmarked jewelry is mainly considered safe, and you are not likely to get scammed since it has been certified.
Buying gold that is hallmarked guarantees value for your money. If your jewelry doesn’t have a hallmark, you might be buying fake gold. Therefore, consider buying hallmarked jewelry pieces.
Gold has different colors ranging from yellow, white, to rose. Yellow gold is the purest gold with 24K and is extremely valuable-It is soft and stretches easily.
White gold results from mixing refined gold with other metals such as palladium, silver, and zinc.
Rose gold is a result of mixing and silver with copper. Each color has its purpose. Therefore, know which gold you need before buying a piece.
Packaging is an important thing also to consider while buying gold. Be keen not to buy a tampered package since the gold pieces inside might have also been altered.
It is good to know the clarity over buyback terms when purchasing your gold. Buyback terms may include understanding the kind of deductions and what you may get should you want to sell it.
When buying gold, you should check if there is any discount offer available. If there is any, you should try to find out more about it before deciding to go for it.
It is essential to know the necessity of the gold before deciding on buying it. Avoid buying gold to invest in or store it. It should also not exceed 10% of your portfolio.
Man-made vs. Machine-made gold ornaments.
Man-made ornaments are more expensive compared to machine-made because they require professional artisans. Many people consider it handmade since you are likely to get the exact thing you need. Machine-made is much cheaper because making it takes a shorter time and is also mass-produced.
Knowing how much your gold jewelry weighs gives you an advantage. Usually, you use weight to determine the cost, strength, and durability of the gold. Also, use troy ounces to measure the magnitude of a piece of a gold jeweler. The price of a work is high if its value is also high.
Understand that thicker and heavier gold pieces are more durable since they can withstand wear and tear over time. A lot of gold jewelry has been added gemstones of high value, such as diamonds. In such instacces, you need to ask the jeweler to minus the stone weight and ensure that the payment you made is only for the Net weight.
The rates of gold globally keep on fluctuating every day. You might get it at times being very high and sometimes too low. Checking the gold rate before deciding to buy it is very crucial.
Also, remember that gold dealers differ in their charges. It is prudent to try checking rates from all the gold dealers you would like to purchase on the same day. You can therefore choose a dealer that offers the charges that you can afford and whose gold meets your requirements.
As gold demand is increasing, many individuals and companies selling gold would appear to increase counterparty risk. Therefore, you should be careful when choosing your gold broker. You must develop a long-term relationship with a trusted gold dealer.
That is a better way to avoid other dealers from taking advantage of you. By asking these questions, you will be on the safer side buying your gold.