The Different Ways to Buy Physical Gold

Gold in India is considered not only metal but also an asset for future use. For ages, people in India have been buying gold on different occasions. As a matter of fact, gold is also offered to the Almighty to varying temples in India like the Shirdi Sai baba temple and Tirupati Balaji. People provide gold to the Almighty on almost every special occasion. This makes India the largest importer of gold in the entire world. Gold also supports in times of financial crisis and emergencies. Thus, buying gold has been a system in the Indian tradition.

Where to Buy Physical Gold?

There are many different options available in India from where one can buy physical gold according to his needs. Some of the options are listed below.

Online Purchase of Gold through Banks

You can procure 24 Karat pure gold through various banks in India. Banks like ICICI, HDFC, and Axis bank offer an option to buy physical gold online. All you need to do is log in/signup on their official websites and place the orders for purchasing gold. Banks assure the highest purity of gold offered by them. You can buy physical gold starting from as low as 0.5 grams to a maximum of 100 grams. You can then visit the nearest branch of the bank to collect your gold. If you wish the gold to be delivered to your doorstep, there are options for that too. With minimum delivery charges, your gold is delivered to you in tamper-proof packaging with a credit card that guarantees the purity of gold.

Wholesale Buying of Gold

In India, wholesale buying of gold is generally not allowed. But if you wish to purchase gold in large quantities at comparatively lower prices, you have an option of gold trading markets. These markets have large amounts of gold, which can be traded in different shapes and sizes, including gold coins and gold bars. Jewellery shop owners and gold merchants generally buy large quantities of gold. 

Retail Purchase of Gold

In India, retail buying of gold is the most common form of purchasing gold from the market. You need to visit a jewellery shop or showroom and buy gold according to your need. Gold jewellery usually costs higher than the market rate of gold because of the making charges imposed by the shops. Gold bars and gold coins are the other ways to buy physical gold in retail. If you wish to purchase gold in bulk, you can buy it from someone who wants to sell their gold because of some casualties or urgent money. 

Gold Selling Websites

In recent times, many online websites have come up with the idea of selling gold online. These websites not only give you enough options to buy physical gold from but also saves you time. You can buy from a whole range of different gold jewellery, or you can also purchase gold coins. These payments are made safe and secure just like other websites, and the gold is delivered to your doorstep in tamper-proof packaging. Some examples of such websites which sell gold online are caratlane.com and bluestone.com.

Gold ETF or gold exchange-traded funds are also an option to explore if you are willing to invest your money in gold. Buying gold has always been a rewarding option for the buyer as the gold prices never tend to fall too low and are usually high. Gold ETF or gold exchange-traded funds is a mutual that lets you invest your money in gold, giving you assured profit.

What are the Different Forms of Physical Gold?

Gold has many different forms. You can buy physical gold in the form of Jewelry, gold coins, gold bars, sovereign gold bonds, gold exchange-traded funds, and gold mutual funds. To buy physical gold, you need to head out to a jewellery store, and from there, you can purchase the gold. To purchase gold on paper, one can think of gold mutual funds or gold ETF (gold exchange-traded funds).  

There are many different forms of physical gold that you can buy according to your needs. Some of them are listed below.

Jewellery

Owning gold jewellery is an old tradition in India which dates back ages. Indian people have always cherished the possession of gold; thus, jewellery has always been there in Indian practice. But owning old jewellery has always been a concern for the middle class. The safety issues, the high costs at times when the market is high and outdated designs are always an issue when buying gold. Above these, the making costs are also imposed, ranging between 6 per cent to 14 per cent. 

Gold Coins

Gold coins are now being made available in the market for interested ones to buy. It is also considered a form of investment. The gold coins can be purchased from different jewellers, non-banking finance companies, and banks. In recent times, some online websites have also started selling gold coins. The gold coins manufactured are all of the same types, which have the Ashok Chakra, the national emblem of India on one side, and a picture of Mahatma Gandhi on one side. Gold coins of different weights of 5 grams and 10 grams are usually available. If you want a more heavy gold coin, you always have the option to customize it.

What are the Factors that Determine the Gold Prices in India?

Indians have gold as an integral part of their life. Purchasing gold on special occasions has been an old tradition in India, irrespective of the gold prices. 

There are undoubtedly other factors that help us determine the gold prices. Some of them are mentioned below:

Supply

Gold has become a scarce commodity in its natural form, with only a few countries worldwide having generous reserves. The gold prices can change if the demand and supply equation changes and has always been an essential factor in determining gold rates in India. As such, the supply of new gold coming to the market is not constant, changing from time to time, which means we have to suffice with the current quantity present in the market.

Import Rates

A high import rate is bound to increase the gold rates in the market and vice versa.

Natural gold reserves in India are dwindling, and the gold production capacity of the country is down to a narrow trickle compared to the past because of which most of the gold used in the country is imported, making import duties an essential factor in determining the price of the yellow metal in the country.

International Relations

The easing of sanctions and overall global relations play a significant role in determining gold rates, primarily because gold is considered a safeguard against geopolitical instabilities. International relations between the nations worldwide can influence gold prices, as tensions between global powers can push up rates. For instance, if the USA has bad ties with a significant oil producer, gold prices in the country will be impacted due to lack of supply.

Let us know about the types of gold available in the market and purchased by the ordinary person. 

What are the Various Types of Gold?

Yellow Gold

It is generally alloyed with silver, zinc, and copper. It is usually non-corrosive, ductile, and malleable. Yellow gold usually has a high melting point, and thus, it is not susceptible to compression. 

Rose Gold

It is generally alloyed with copper and, in some rare cases, silver too. The proportion of rose gold is one part of copper to three pieces of pure gold. Rose gold is also known as pink gold.

White Gold

It is generally alloyed with copper, nickel, and zinc. Nowadays, it is frequently used to make diamond jewellery and is also considered a classic choice. White gold is not subject to tarnish and is a highly reflective metal.

How is the Purity of Gold Calculated?

When you buy physical gold, the purity is measured in karat. The higher the Karat, the higher is the purity of gold. Gold with different purities is used to make various items like Jewellery, coins, and bars. 

Here we will talk about 24 karats, 22 karats, and 18 karat gold. 

24 Karat Gold

The 24 Karat gold is the purest form of gold available in the market. It is 100 percent pure with no other metals mixed with it. It usually has a distinct bright yellow colour. The 24 Karat gold is soft and pliable, and thus, it is not used in making traditional forms of jewellery. Its primary usage is in the making of electronic and medicinal devices. It is also used to make gold coins and bars.

22 Karat Gold

The 22 Karat gold is known as 91 percent pure gold. It is mixed with metals like zinc, nickel, silver, and some other alloys with 22 parts of pure gold and two different metals or alloys. This is gold which is primarily used in the making of jewellery. The mixture of gold with other metals or alloys gives it a hard texture and thus makes it suitable for making durable jewellery.

18 Karat Gold

The 18 Karat gold is known as 75 percent pure gold mixed with 25 percent of others metals like silver, copper, and other alloys. Its primary usage is in the making of diamond jewellery or stone studded jewellery.

What is Meant by Hallmarking of Gold?

The process of certifying the purity and fitness of gold is called hallmarking. The hallmarking is nothing but just a way of assuring the buyers that the gold they have purchased is pure. 

The national standards body of India, the Bureau of Indian standards, is responsible for the hallmarking of silver and gold. 

There are four crucial things that a person must be aware of and check before buying gold.

• The BIS Hallmark
• The fineness and purity in Karat. For example, 22K916 means that the gold is 22 Karat and is 91.6 percent pure.
• Jeweller’s unique identification mark
• Hallmarking centres mark.

Buying physical gold has always been an advantage for the owner. It is an excellent way of saving money for the future since the prices of gold never depreciate. Buying physical gold is a type of investment and assures a good return in the long run. 

Gold does not deteriorate with time. Like investing in land, your other investments can see a depreciation with time depending on the rate of the property. But gold is a never deteriorating asset. With time, the prices of gold are more likely to increase than decrease. Also, gold can be passed on to your future generations or converted into jewellery and used by yourself. Gold does not require much maintenance and can be kept safe with you or your family for many years. 

Buying physical gold is a solid investment one can make in recent times. This article would have indeed provided you with a clear picture of why to buy physical gold.

Read More: All You Need to Know About Buying Gold Online

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