Connect with us

Blog on Finance : Here's Everything You Need to Know.

Blog on Finance : Here's Everything You Need to Know.

Four Considerations When Buying Gold for the First Time

Money

Four Considerations When Buying Gold for the First Time

Four Considerations When Buying Gold for the First Time

Buying gold is a good investment option. It has proven through centuries that its value offers some good returns. It is also less volatile than currency investment and stocks, so you should consider this option if you plan to diversify your portfolio. Even though they have been around for ages, they are still highly in demand, which proves that your money will not go to waste if you plan on getting some. Aside from jewellery, this precious metal is also sought after by industrial companies that use gold to manufacture precision electronics and medical devices.

gold

Here are the considerations you should look for when buying gold to ensure that you are getting your money’s worth:

Purity

Karat and fineness are the two indicators of this metal’s purity. 24 Karat gold is considered the most expensive since it barely contains a hint of impurity. If you see a gold product that says 18K, it means that it is 18 parts gold and six parts of other metals like silver or zinc. While they are less pure, combining them with other metals makes them more durable for jewellery-making. However, if you are buying gold bars for investment purposes, it is best to buy 24K as they are more liquid to sell than those that are less impure.

Pure 24K gold is also further classified by another parameter to determine how genuine it is. Fineness indicates the proportion between the gold and its other impurities. The highest level of fineness that a gold bar could have is 999.9. You will see this in gold bars labelled as 24KT. The reality is that there is no such thing as completely pure gold. There will also be some barely noticeable trace metals that may not have been removed by the refineries.

Hallmark and certification

Having a hallmark logo on a gold bar indicates that a trusted laboratory has further verified the purity of the product. You should know though that a hallmark logo is not always necessary as some prefer their gold bars to be examined by laboratories accredited by the national governing body. Skipping this practice reduces operational costs. It is up to you if you would trust your source refinery to indicate the proper level of purity in their product. Just make sure that the laboratory’s mark is shown on the gold bar to verify its claim. Your gold bar should also indicate the jeweller’s mark’s so you can report to the national governing body if there are discrepancies in the products that they are selling.

Return policy

Just like most products, some gold bars online also offer a return policy. This policy varies from jeweller to jeweller. Take the time to go through its terms and conditions before making your purchase so that you know what you are getting into.

Packaging

If it is your first time buying gold, you should ensure that it is packaged well. Taking them off their package is a no-no. There is no need for you to remove them from their case to display them in a more luxurious container. The packaging is often done in a way that ensures your bar keeps its purity.

In summary, buying gold is a good investment option for anyone who is looking for long-term gains. When purchasing these products, some of the considerations you have to keep in mind are its purity, fineness, return policy and packaging. Once you have gone over this, then you can make your first purchase.

Continue Reading
You may also like...

Aaron Smith is a content marketing executive at Blogonfinance. He frequently blogs for the Blogonfinance business blog and Forbes. Connect with him on Twitter @aaronsmith20111

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

More in Money