Throughout centuries, people have continued to hold gold for various reasons. The key lies in knowing how to buy gold which can diversify your investment portfolio.There are many different ways to own gold and it can be quite perplexing at times. This article will help you understand the pros and cons of various kinds of gold investment like jewellery, gold bullion bars, gold bullion coins and Gold Exchange Traded Funds (ETFs).
Jewellery: Let us start with jewellery, it being the chief and the most traditional form of buying gold in India. Many well known jewellers stamp their different pieces of gold jewellery with the specific karat quality called the Hallmark. The Hallmark is usually found on the inside part of each piece and will indicate the gold content, for example, 18K for 18 karats of gold. In addition, always insist on a certificate of authenticity which ensures that you are purchasing a quality piece of gold jewellery.
- The main advantage of buying gold jewellery is that you can wear it and enjoy your wealth.
- It acquires great monetary value and at the same time attains the status of heritage as it passes down generations.
- If you are specially buying jewellery for investment purposes, then you can select a piece that contains a higher percentage of pure gold. The higher the karat, the more is the content of gold. So, it is ideal to choose 24 karat or pure gold or 22 karat that is, around 91% gold, if you want to profit from investment in gold jewellery.
- Though yellow gold is popular, you can get exquisite designs even in white and rose gold. Designer gold jewellery can be a great option in this regard.