How to Buy Gold Coins in UAE?
Gold is something that many of us buy during the festive season, or during economic growth. Other than jewelry, investments in gold can also be made in the form of coins and bars. Lately, many of the people prefer buying gold coins over buying jewelry, because coins can be bought in lower denominations. If you are one of the many people opting to buy gold for this festive season, here are some things to keep in mind.
The Purity of the Gold Coins
There are two ways by which the purity of gold coins can be measured – Karat and Fineness.
The most commonly used measure for determining the purity of gold is Karat. 24 Karat (24K) is said to be the purest form of gold, and it contains 24 out of 24 parts of gold. In the same manner, 22K gold contains 22 parts of gold while the other 2 are other metals such as silver or zinc to increase the durability while making pieces of jewelry. The higher the Karat, the higher will be the gold rate in UAE.
Fineness is the other form of measuring the purity of gold. It is defined as the weight of gold in proportion to the total weight. This is needed because it is declared that even the purest gold can contain very little amount of impurities that the manufactures cannot remove.
Hallmarking of the Gold Coins
While buying gold coins, apart from taking into account the purity, one should also check for the hallmarking. The DCLD – Dubai Central Laboratories Department awards the authentic retailers that follow fair trading practices a Bareeq Certification. Every legit jewelry retailer will hold a Bareeq Certificate.
The Packaging of the Coins
It is advised to buy gold coins only in a packaging that is tamper-proof. The packaging of the coin acts as a guard against fraud, counterfeiting, and damage. Jewelers recommend that if you plan to resell the coin, you should not tamper the packaging as it denotes the credibility of the purity of the gold coin.
The Denominations Offered
Usually, the gold coins in the market are available at low denominations. Therefore, this means you can buy the amount that fits your budget as per the gold price in UAE. However, the availability of denominations depends on the retailer.
The Making Charges Involved
Buying gold jewelry is often more difficult as compared to buying a gold coin. It offers you the option to buy pure gold in low denominations, which involves lower making charges when compared to pieces of jewelry like earrings, or rings.
The Options to Purchase
You can also buy gold coins from online retailers apart from your local jeweler. However, the minimum denomination of the gold coins to be bought varies from one seller to another, just as the gold rate in UAE offered varies across the different retailers.
The Ease of Selling
It is important to consider the difficulties and gold rate in UAE involved when you consider selling the gold coin in the future. If you buy from jeweler A and sell the gold coin or coins to jeweler B, the resale value offered to you by jeweler B will be lower. The reason behind this is that jeweler B only pays you for the gold and not the making charges, profit margins, and fees that you paid while buying from jeweler A.
To Further Conclude
It is important to keep the above-mentioned things in mind in order to ensure that you get the best value for your purchase of gold coins at the given gold rate in UAE.