Akshay Tritiya: 4 things to keep in mind before buying gold

Most people buy gold during Akshay Tritiya, which is an occasion to celebrate prosperity, new beginnings, and the blessing of wealth. It falls on the third day of half of the month of Vaishakha and is considered auspicious for starting new ventures.

In Hindu tradition, certain days are considered more favourable for making investments and conducting important purchases. Akshay Tritiya is one such day, the term "Akshay" means "without end," signaling an opportunity for success and abundance. Many individuals think that purchasing gold on this day will bring continuous prosperity and good luck to their families.

Buying gold for Akshay Tritiya? Be mindful of these things

Many families have rituals and customs related to gold purchases on Akshay Tritiya, making it a culturally rich event. The most common types of gold you will encounter are 22k, 18k, and 14k, which denote the proportion of gold mixed with other metals for added durability. For Akshay Tritiya, if you’re considering an investment piece, opt for 22k gold, as it strikes a good balance between purity and usability for jewellery.

Here are some things you should keep in mind if you’re buying gold for Akshay Tritiya.

Buying the right kind of gold

Gold comes in various forms: jewellery, coins, and bullion. The choice depends on your purpose for buying. If you seek an item that can be worn and cherished, gold jewellery is ideal. However, if your primary focus is investment, gold coins or bullion bars may be more suitable, as they tend to have lower making charges and can be easily stored or sold in the future.

Investing in pure gold coins or bars can provide a better return on investment due to lower premiums compared to handcrafted jewellery, which often carries high making charges. Jewellery is beautiful and may have cultural significance, but for sheer investment purposes, bars or coins may be the wiser choice, especially if you're looking to invest larger amounts.

Market Trends and Pricing

The price of gold fluctuates based on global market trends. Leading up to Akshay Tritiya, gold prices may either rise due to increased demand or stabilize. It's essential to monitor gold prices in the months leading up to the festival. Online platforms, financial news, and apps can help you stay updated.

If you are planning to buy gold as an investment, consider doing so when prices dip slightly. However, predicting short-term movements can be challenging; therefore, consider setting a budget beforehand to avoid overspending during festive promotions that might tempt you to buy more than intended. You can also assess previous year prices around Akshay Tritiya to strategize your purchase accordingly.

Avoid buying gold jewellery with precious stones or meenakari

Making charges of gold jewellery with stones can range anywhere from 10% to 30% of the gold price, and in some cases, even higher for intricate designs. When it comes time to sell, you typically only recoup the value of the gold itself, not the additional costs associated with its manufacturing. The value of precious stones—such as diamonds, emeralds, rubies, and sapphires—can fluctuate based on market demand, trends, and other factors.

Selling jewellery is not as straightforward as selling gold bullion or coins. While gold can be easily sold to jewelers or gold buyers, the presence of engraved designs, personalizations, or gemstones complicates the transaction. Jewelers may offer a lower price for jewelry compared to the raw gold value due to high markups and the challenges involved in reselling intricate pieces.

Buying from Reputable Dealers

The integrity and reputation of the dealer are key when purchasing gold. Choose a trustworthy jeweler or dealer with positive reviews and a solid track record. Familiarize yourself with the regional wholesalers and retail gold markets; this knowledge can prove invaluable in ensuring authenticity.

Establish the return policy before making a purchase. A good jeweler should provide clarity on exchange policies, especially in case of resizing or dissatisfaction with the product. Social media, word-of-mouth, and online reviews can serve as excellent tools for gauging a jeweler’s reputation. Buying from reputable dealers reduces the likelihood of counterfeit products and ensures potential resale value.