Smartest investment and life plans in UAE

5 Important Things to Remember before buying Gold

By PolicyBazaar
  | Published: 16 January 2020 | Last Updated On: 15 January 2021

Invest in GOLD and give a boost to your investment portfolio

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Smartest investment and life plans in UAE

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Gold is all about its glitzy appearance, rich glow, and enduring value. In short, it is one of the most precious metals in all over the world. Purchasing gold for people in the UAE usually means one thing i.e. jewelry. However, buying gold jewelry serves dual purposes not only it is a great fashion accessory but also people buy it for an investment purpose since it has a great resale value.

Remember, gold is a big investment in itself and buying this yellow metal is always not an easy task. There are certain things that you need to be cautious in order to ensure you get the best possible deal.

In this article, we have mentioned those important things that you should know before investing in gold.

Gold Rate in UAE

The first and foremost thing that you need to consider before buying gold is the current market rate of this precious metal. The rate of gold is not steady and it changes almost every day on the basis of several factors such as global market, gold production costs, demand & supply, inflation, value of the US dollar, etc. Make sure you are purchasing gold at a reasonable rate. You can easily check the current rate of gold from online websites. Also, it is highly suggested to go through the historical gold price if in case you are purchasing it for investment purposes.

Examine the Gold’s Purity

The second most important thing is to examine the purity of gold before buying it. And the purity of the yellow metal denotes in karats(K), with 24k gold being 99.9 percent pure gold and 22K gold being 92 percent pure gold. Well, every karat gold equals to 4.2 percent pure gold which means that 18k gold contains only 75 percent gold. Also, keep in mind that 24k gold is not used to make jewelry since it is very soft and pliable. That is why, jewelers use either 22k, 18k 14k for making jewelry.

Buying gold jewelry without inspecting its purity is a big no since there are many gold jewelers that mix the gold jewelry with other metals and claim it jewelry that is made with pure gold. Thus, it is advisable to know the purity of gold before investing your money. Well, the hallmark is a sign of gold’s purity so it is highly suggested to buy hallmarked jewelry since these pieces are well-tested by proficient agencies.

Check the weight

In the UAE, most of the gold jewelry is sold by weight. The heavier the weight of the jewelry, the higher will be its rate. Some precious stones such as emerald & diamond are also added to the gold jewelry thereby making the piece heavier in the process. Thus, jewelers weight a piece in its entirety. That simply means that one might end up paying more for gold which is actually not used and it is very important to keep this thing in mind when buying studded jewelry.

Jewelry Store

There is a wide range of jewelry stores in the UAE, small or big, catering to its population. Sometimes buying gold jewelry from small stores could a great risk since they might sell an impure gold by saying it pure gold or could sell stolen gold artifacts. Thus, it would be better to buy gold jewelry from reliable and reputed jewelers at least you have an assurance that you will get pure gold.

Making Charges

Every piece of gold jewelry has a making charge which essentially the labor charge that is involving in making it. Making charges of gold jewelry is a reflection of current gold prices and one could easily be fleeced into paying higher making charges than he/she should. Persisting on unaltered making charges could make gold purchases more affordable and would definitely help you get the best deal.

In A Nutshell

So, make sure you keep the aforementioned points in your mind while buying a piece of jewelry or investing in it for a saving purpose. This will certainly help you make a wise decision.