Gold is something that buy during celebrations. We can buy gold bars and coins, and also jewelry.
Many prefer to buy 1 gm gold coin over jewellery as the latter can be purchased with denominations as small to 0.5 grams. If you're looking to purchase gold coins during the holiday season, here are 7 points to be aware of.
1. Gold coins are pure and have a high purity
Two methods are available to assess the purity of gold coins: Karat or fineness. Karat is the most commonly used measure of gold purity. 24 Karat (KT) is thought to be the purest type of gold that contains 24/24 pieces of gold. In the same way, 22KT gold has 22 parts of gold, and two parts of other metals such as zinc or silver to increase its durability in the making of jewelry.
Fineness is another parameter used to measure gold's purity. It is mainly to find the purity of 24KT gold. According to the website of the World Gold Council, even pure gold may contain tiny quantities of mixed impurities that the manufacturer has not been able to eliminate. Fineness refers to the weight of precious metal (such as gold) in proportion to the total weight (which includes impurities and alloys). It is measured in terms of parts per one thousand. The pure form of gold, i.e. 24KT when measured in terms of fineness, shows 999.9 parts per thousand of pureness.
2. Hallmarking
Alongside the quality of
10 gm gold coin One should also check whether the item is marked with. The government of India has created the Bureau of Indian Standards (BIS) to ensure that customers aren't swindled when buying gold. BIS stamps gold and silver coins and jewelry to confirm its purity.
3. Packaging
It is recommended that you should buy gold coins within an odour proof, tamper-proof packaging. The packaging is a guard against fraud, counterfeiting, and even damage. Jewellers suggest that one not tear or open the tamper proof packaging for the gold coin in case of reselling it. The packaging guarantees the purity of the gold coin.
4. Denominations
Gold coins are available on the market in a range from 0.5 to 50 grams. The quantity of the coin that you are looking to purchase depends on the jeweller.
5. Charges
The process of buying gold coins is comparatively simple as compared to jewellery. You can purchase the purest gold at the minimum weight of 0.5g with lower costs for manufacturing than other ornaments like rings, earrings, and so on. Usually, the making (or manufacturing) costs for gold coins vary from 8 percent to 16 percent.
6. There are a variety of possibilities to choose from
Apart from the local jeweller, one can also buy gold coins from online e-tailers, banks, MMTC (a government-authorised public sector unit for the sale of gold and silver), and certain non-banking financial companies.
However, the minimum denomination of gold coins can differ from one entity to another. A few firms provide smaller denomination coins with a weight of 0.5 grams. It offers gold coins in a range of sizes that start at 0.5 grams with 24 KT/999 quality.
7. Selling is easy
You can't return your gold coins from banks if you've bought them or plan to.
It is not uncommon to find that jewelry coin purchased from one jeweler (let's refer to it as A) is offered at a lower cost to another jeweller. This is because jeweller A is the one who pays you the gold, but not for any processing fees, administrative fees or profit margins you paid when you purchased from jeweller A."