Learn with ETMarkets: 10 ways to master gold, silver purchases this festive season

Dhanteras, a significant day in the Hindu calendar, is traditionally associated with the purchase of gold and silver, symbolizing prosperity and good fortune. As you embark on your Dhanteras shopping journey, here’s a guide to help you make informed decisions with the following do’s and don’ts:

Do’s:

1.Research Prices in Advance:
Prior to Dhanteras, research the current prices of gold and silver. Stay informed about market trends and fluctuations to make purchases at the most favorable rates.

2.Buy Hallmarked Jewelry:
When purchasing gold jewelry, ensure it carries the BIS (Bureau of Indian Standards) hallmark. This certification guarantees the purity of the metal and the accuracy of the stated weight.

3.Consider Gold ETFs and Sovereign Gold Bonds:
Explore alternative ways of investing in gold, such as Gold Exchange-Traded Funds (ETFs) and Sovereign Gold Bonds (SGBs). These financial instruments provide a convenient and secure means of owning gold.

4.Check Making Charges:
Inquire about making charges when buying gold jewelry. These charges are separate from the metal cost and can significantly impact the overall price. Compare making charges across different stores to get the best deal.
5.Verify Purity of Silver:

When buying silver items, ensure they are marked with the appropriate purity levels. Sterling silver, for example, is typically 92.5% pure.

6.Explore Combo Offers:

Some jewelers offer attractive combo deals on Dhanteras. Consider exploring these offers, but ensure that the individual items meet your quality standards.

Don’ts:

Avoid Impulse Buying: Resist the urge to make impulsive purchases. Take the time to compare prices, quality, and designs across different stores before finalizing your decision.
Neglect authenticity: Only buy from reputable and established jewelers. Avoid street vendors or unknown sellers, especially if the authenticity of the gold or silver cannot be guaranteed.
Overlook Storage Costs: If you’re considering physical gold or silver, remember that there may be associated storage costs for keeping these precious metals secure. Factor this into your decision-making process.
Disregard Warranties and Guarantees: Check for warranties and guarantees, especially when buying high-value items. Reputable sellers often provide these assurances, giving you peace of mind regarding the quality of your purchase. Also do not forget to check the exchange policy. Knowing the terms for returning or exchanging items can be crucial in case you need to make adjustments after your purchase.

(The author Jateen Trivedi, is Vice President Research Analyst at LKP Securities)

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This article was originally published by Indiatimes.com. Read the original article here.