Buying gold jewellery is tempting because of the value it adds. But more than being tempting it is necessary because of the cultural and financial significance it adds. However, in the rat race of looking up today gold price in Gujarat or Bangalore and rushing to buy gold to make great profits we often overlook many pitfalls we could avoid as an investor. So here we list out some such pitfalls that you should definitely be aware of to increase your profits:
Don’t buy gold on a loan
Taking any kind of loan is never good news, even though it may be a short-term loan with flexible repayment options. When taking a gold loan, you must keep in mind that the interest rates are often high as compared to other loans. If at all you want to take one, make sure it is from an institute that offers low-interest rates. Make sure that your credit history is good as well otherwise you might be charged a higher rate of interest.
Don’t fall for the marketing gimmicks
There are so many offers and schemes that jewellers offer to lure in customers like an exchange offer or a lifetime exchange policy. But, if you don’t keep up with them, you may end up losing money on the jewellery that you bought at a higher price. If a stone comes loose, you have to go back to the same store and get it fixed for free under the lifetime exchange policy. This can be time-consuming and also lead to a lot of confusion. As for the exchange offer, it is best to do your research about the value of gold and other gemstones before trading in your old gold for new jewellery.
Don’t buy from a mall
Many people think that buying gold from a mall is a safer option as the products are more standardized and there is a wider range of designs to choose from. However, the fact remains that all these designs are mass-produced and sold, which means that the chances of purchasing one that someone else has bought are high. Also, you will be spending a fair amount of money on something that is not unique. Additionally, jewellery stores in malls ask for higher prices because they have to pay high rent rates there. To confirm this you can search up gold rate today in Tirupati or for the city you are from and then match the price with gold price in a store from a supermarket. Opting for stores in residential areas or local markets will help you get better value for your money as they will charge less than mall retailers who need to pay their bills too!
Don’t buy from an unknown jeweller
No matter how attractive the design or price may be, avoid purchasing jewellery from unknown jewellers. Always ask for the purity certificate issued by BIS Hallmark before buying any kind of gold jewellery, especially online. If you don’t get the certificate, walk away!
Don’t buy in bulk
Avoid buying all your gold at one go as this might lower the resale value in case you wish to liquidate some quantity later on. Instead, invest periodically so that you can take advantage of price fluctuations.
Don’t miss out on insurance
Always ensure your gold ornaments because they are prone to theft and loss due to damage in transit or burglary etc.
Skipping the billing
Don’t buy from a store that doesn’t offer a bill or receipt for your purchase. A proper bill will have details such as making a charge, gross weight, net weight of gold, design number and brand name of the jeweller. It will also indicate the date of sale and the purchaser’s name. Remember that a proper bill is important because it helps when you sell it later.