Needless to stay Indians love gold and when it comes to investing, gold is their answer. People prefer buying gold because of their high liquidity, and good resale value attached to it. Gold performs as a multi utility asset with negligible maintenance unlike other assets such as houses, property, shares etc., as it can also be accessorized and is a major investment.
But do we know that when jewellery are resold or exchanged we do not get the exact amount that we actually invested on it. Rather, we get a cut down amount which is after deducting a certain amount under the head of making charges. Then how should one invest in gold and not be at loss?
If one is buying gold just for the purpose of investment, then they should always buy gold coins rather than gold jewellery, because at the time of exchange or resale the making charges are not deducted as compared to that of jewellery. It will provide you with the same amount of money as much as the coin weighs and according to the gold price in the market. Gold coins do not lose value overtime, unlike gold jewellery and tend to be of same value over time.
In most cases it is advisable to buy gold of 24K or 22K purity so as to get the best purity of gold. Gold coins also tend to lose value if these are bought from one shop and sold at another. Gold coins start from the least denomination such as 0.5g ranging up to 50 g, but that mostly depends on the jeweller. May it be gold coin or gold jewellery, gold is worth investing in and encash it while the prices are still at an all-time high. Happy Investing!