“All that glitters is not Gold.”
Remember the age old, golden saying often used by our elders, teachers and parents to make us realize that outside appearance is not 100% reality. Something that shines and attracts your eyesight may turn out fake from inside.
The precautionary phrase speaks about the truth behind the mistakes people make while buying the glittering gold or even silver. Gold has been treated and respected as the safest form of Investment since historical period. Indian’s love of Gold is reflected in India being the 3rd largest gold importer country with spending of around $31.8 billion (year 2018) in gold imports. The huge spending in imports is a matter of demand throughout the year by all parts of India, dominated by South India.
Gold as an investment is common across India, irrespective of the region and religion. Ever wondered, whether it actually works as a savior in the times of need? Ironically, the value invested in buying the investment gives you return of maximum 80%, even if the rate of selling is higher than the rate of purchase. Although sad, this is the truth!!!
The first and foremost reason for less returns on the investments is, people buy gold in the form of jewellery. The jewellery either crafted with heavy stones like pearls, kundan, ruby etc., which are undoubtedly a pleasure to the eyes and a matter of pride to the wearer brings less of value as returns. The more the intricacy in the jewellery design, the lesser the value of gold.
The second reason being, the purity of gold. The gold used for making the jewellery is not pure 24karat gold, infact it is somewhere around 18 karat. The lesser the purity, the lesser the returns on investment.
The next reason is the high making charges that you as the customer pay for getting your dream jewellery done either from the small time jeweler or from the big branded jewellery showroom. The making charges are charges on per gram which can go upto Rs.1000 per gram or even higher.
Now calculate the cost you have incurred in the buying gold as an investment expecting surge in the returns after years. The reality is harsh but the safest form of investment will not disappoint you, if you invest wisely. Instead of heavy jewels, buy gold coins with highest purity of 24 karats in the denominations that suits your pocket and fits in your smallest locker. The gold coin denominations start from 1 gram and ranges like 5 gram, 10 gram and so on. To suit your busy schedule, you can browse the coins online from trusted online portals, you can check online the reliability of brands like MMTC, RSBL, Kundan, NIBR, Coin Bazaar gold coins. Buying gold online, is definitely a risky proposition, however the trusted platforms with trusted products mitigates the risks added with smooth and fast delivery options.