The Holy Gold Coins
Gold coins in India come with a lot of prominence in terms of value, religion, usage and gifting. There is a long drawn history as to why Indians purchase gold coins. Gold is worshipped in the Indian households till date before they could be used. It is considered that you are getting home goddess Lakshmi when you buy gold. Also, it is a widely followed belief of paying for a gold coin before hand and taking the delivery on a Tuesday or a Friday.
Why should you invest in gold Coins?
People invest in gold bars for a number of reasons such as
- For the sheer reason that they can convert it into cash on a rainy day
- For years gold has been appreciating at an exponential rate, people wish to take advantage of this price rise. Hence they stay invested in gold coins.
- There is always a utilization factor linked to gold sooner or later by way of weddings, family occasions, festivals etc. People anticipate the need and hence buy gold coins in advance.
- With the rising currency risk in national and international markets, gold has always been a priced commodity which can be relied on.
- A Gold bar when compared to any other asset such as building, vehicles or land is the most easiest to exchange for liquid cash. This makes it one of the prime reasons for investment in gold.
When to purchase gold coins?
Most Indians needn’t require a reason to buy gold coins or gold. A small celebration at home like a birthday can be a basis to buy gold. Jokes apart there are few major occasions where buying gold or gold coins surges up in the market. Practically every Indian household tends to look at gold on these days of the year:
- Dhanteras – Lakshmi pooja day which comes one day before Diwali
- Akshaya Tritiya – In the month of April which marks the beginning of summer days
- Sravana Sukruvaram- In the month of July-August fondly called as the month of Savan
Apart from the above people tend to purchase gold on respective regional new year days such as Ugadi, Vishu, Onam, Gudi Padwa, Lohri etc and hundreds of big and small occasions that come in life like child birth, birthdays, wedding anniversaries, retirements and commemorating big and small events in life etc.
Type of gold coins
There are hundreds of types of gold coins available in the market. Basically gold coins are available in
- Plain Form: It only has the weight, purity and Jeweller mark on it
- Embossed Form: It has an embossment of gods, goddess, cross, Mecca, Zodiac signs, Queen Victoria etc
- Custom made: They are ideal for gifting purposes, some retail Jewellers have gold coin vending machines where in one can emboss their name, date of birth, anniversary dates etc.
Reselling of gold coins
Reselling of gold coins is for a cash value is not allowed in India. They can only be exchanged and adjusted against the price of your purchase of a gold item at retail Jewellery store. Some gold coins which are not hallmarked are first tested for purity and then accepted for exchange.
Why buy Gold Bars?
Off all the available avenues to buy gold, buying gold bars is the preferred one. This is because of the easy resale that it gives, flexibility of liquidating when ever required and the ease of storing also is another point making it a preferred one.
Buying gold online has picked in the recent years. There are few service providers from where gold coins in denominations as low as 1gm can be purchased with an option to store them physically with them and call for a delivery when required only. These service providers offer two types of buying:
- Buying gold as per denomination i.e. 1gm, 2gm, 5gm, 8gm, 20gm etc.
- Buying gold in terms of rupee value i.e. if the gold rate is 30,000/10gms, a customer has an option to buy gold for 3500 rupees i.e. 1.16gms (fractional buying of gold). The same is recorded in the customers e-gold account and can be redeemed in cash or through physical delivery as and when it reaches a certain limit or as specified by the service provider.
Gold bullion price is updated twice in a day by the retail Jewellery stores. A standard Chennai bullion price is followed across all the Jewellery retailers in the South India. Example there are numerous pages which open when we try to search for 1gm gold coin price or gold coin price in India or simply gold coin price today or gold bar price. You can select one of the pages and get to know the price. You would observe that the price may vary between 50 -100 rupees with different retailers/banks/goldsmiths etc. This is bound to happen because of their value additions and differentiating services.
Types of 24K gold bars
Wondering what are the types of gold coins? Gold coins come in a wide variety i.e.
- Different denominations such as 1gm, 2gm, 5gm, 8gm,10gm, 20gm,50gm, 100gm and 1kg
- Different Shapes- such as oval, circular, rectangle etc.
- Different certifications- Government of India has set up BIS to ensure customers are not cheated. BIS certifies gold coins for their purity, effective 2017 there are four components that are stamped on the coin to certify its purity namely- BIS logo, Purity in carat & Fineness, logo of Assaying and hallmarking centre
- Different price (depending upon the plain or embossing)
What to look for while buying gold coins
The question of buying gold coins has always been a tough one as there are numerous options available in the market. But, there are few aspects that one should look into while purchasing such as:
- Availability of denomination of gold coin
- Availability of certified gold coins like hallmarking and Assay certification which gives credibility and a proper resale value while selling it back.
- Availability of embossing like Lakshmi gold coin, Ganesh gold coin (which is ideal for gifting or for pooja purpose)
- Availability of buy back which banks do not offer, only retail Jewellers do. They accept gold by way adjusting against customers purchase and not for cash.
- MMTC gold coins are also famous for their purity, they can be bought from any of their retail outlets. However, one cannot exchange these gold coins to them while in need.
Where to buy gold coins?
There are a lot of options and avenues to buy gold coins in India.
- Buying gold coins at retail Jewellery outlets
- Buying gold coin online
- Buying gold coin from Banks
- Buying gold coin from the local goldsmith
- Buying gold coin from MMTC(Metals and Minerals trading corporation) which is a government outlet
Typically a gold coin comes in 24K purity only. But some small time goldsmiths sell gold coins without hallmarking and certification, these gold coins price is charged as per the prevailing rate on the day of purchase but the purity of these gold coins is not guaranteed to be 24K and exchanging them would not fetch the value for money. Secondly, one can buy gold coins from banks, all PSUs and private banks sell gold coins that are pure, 24K, certified and additionally they also come in tamper proof covers. All these factors make them very premier. When compared to gold coin price in the market and that of the banks price, they are costly by a minimum of 10-15%.
Therefore, the wisest way to buy gold coin is either online or in store from a retail outlet like Vaibhav Jewellers. It is advised to buy gold coins from an established Jeweller who has both online and store presence like ours. This way you ensure that there is a proper exchange for your gold coin and you can also take advantage of buying hallmarked gold coins that go through strict quality control measures.