Gold • Silver • Dhanteras

 

Gold • Silver • Dhanteras

Gold price in the Delhi witnessed a decline of Rs 372 to Rs 50,139 per 10 grams on Friday amid a fall in the yellow metal prices in the global markets, according to HDFC Securities.

Diwali — the festival of light — announces the arrival of time, when Indian households indulge in purchasing gold as it signifies eternity and purity. Call it a cultural embodiment or financial wisdom, gold as an asset is a proven store of value that not only safeguards one’s portfolio but also provides better risk-adjusted returns.

As per the data, gold has delivered average annual returns of around 10 per cent in the last 41 years period in rupee terms. Gold has witnessed gains of around 5.25 per cent for the year at the domestic markets, while riskier assets have fallen short of expectations. Even as the yellow metal has gleamed in Indian markets, its shine has faded in international markets with almost 9.5 percent negative returns YTD. This divergence came in to picture all because of the sharp rupee weakness towards record lows of around the 83 mark that has fueled prices on the domestic front. Prices in the international markets have been on a losing streak for the last seven consecutive months. A range of factors remained at the helm, pressurizing prices internationally.

Strategy

In the current backdrop, buying gold in a phased manner seems worthwhile as concerns about stubbornly high inflation and geopolitics have created a cloud of uncertainty and will burnish gold's safe-haven appeal. From a long-term perspective, accumulating gold in a staggered way first around the ₹49,500 per 10 gm mark and adding more if prices edge lower towards ₹48,800 per 10 gm area seems to be a prudent strategy, while keeping an eye on the crucial ₹47,000 per 10 gm support area. From a medium-term perspective, gold looks to deliver decent returns and embark on an upwards trajectory towards ₹53,700 per 10 gm initially and then ₹55,500 per 10 gm in the long run

Important Things To Check While Buying Gold Jewellery It is significant to purchase gold jewellery after carrying out some important checks given below:

 Jewellery Shop:

 You will come across scores of jewellery shops at every nook and corner in India. You may risk purchasing gold from small jewellery shop as chances are strong that they may sell you impure gold. It is always ideal to visit a renowned jeweler because chances of purchasing impure gold lessens considerably. Also, a recognized jeweler provides guarantee card of your purchases.

 Check purity of gold: 

It is one of the most significant steps that you should always check. It is important to check the purity of gold and the simplest way to look for the purity is to check its hallmarking. The hallmarked jewellery piece conveys you the official proportion of the yellow metal. It is worth mentioning that Bureau of Indian Standards or BIS is the accredition agency that certifies and hallmark gold jewellery. Jewellery containing hallmark will come with a number attached to it along with BIS stamp. The jewellery also contains jeweller's identification mark and year of hallmark. You also must look for letter K that stands for Karat and conveys the percentage of purity. For example, in case the jewellery item says 22k, it implies 91.6% purity (gold content percentage) or 916. To understand the authenticity of jewellery it is significant to look for hallmark. 

Verify the price of gold jewellery:

 This is yet another significant step that you must not overlook. A jeweler shop decides the gold price on the basis of purity of gold. Gold prices vary everyday keeping in line with market price. Jeweller shops will highlight the daily bullion rates at their shop for customers. You must check the bullion price and then calculate the prices as per the purity. For instance the price of 24K gold will differ from price of 22K gold. 24K gold is expensive than 22K gold. If you purchase a 22K gold jewellery, you need to pay accordingly. The renowned jeweler store highlights the bullion rates properly but local jeweler may forgo these details. Therefore, you must verify the price before visiting a jeweler shop.

 Making charges: 

Jewellery shop charge their customers the making charges of a jewellery piece. Making charges are the labour chages and jewellery shops often pass on these charges to customers. Making charges may vary from 5% to as high as 30%. Machine-made jewellery do not involve much labour cost and available at low making charges but jeweler pieces with intricate designs may carry higher making charges. You should always bargain on the making charges.

 Check the weight: 

It is highly significant to check the weight of the gold before buying the items. When you purchase a studded gold item, many jeweler often add the studded items cost to gold jewellery thus making them heavier. It is because jeweler weigh the piece in its totality which implies that you may end up paying for gold that is not actually there. If possible, try to avoid purchasing studded gold jewellery. It is because you may find it difficult to check the purity of studded stones.