Buying gold on Dhanteras is considered auspicious, and many people invest in gold jewelry, coins, and bars during this festival. This tradition also serves as a way to secure wealth, as gold prices have been on the rise. If we compare, last year’s Dhanteras price for 10 grams of gold was ₹60,000, which has now surged to ₹79,500.
Whether you’re buying gold for sentimental reasons or as an investment, it is essential to check its purity and quality. Here’s a simple guide on how to make the right choice when buying gold this festive season.
Check the Purity of Gold Before Buying
Gold is available in various purity levels, with 24-carat gold being the purest form. However, it’s crucial to verify the quality before purchasing. Here’s how purity works:
- 24-carat gold is 99.9% pure and is usually available in the form of coins, bars, and biscuits.
- 22-carat gold contains 91.6% pure gold (22/24), with other metals added to improve durability—making it ideal for jewelry.
How to Measure Purity?
There are two standard ways to check the purity of gold:
- Karat (Carat): It measures the amount of gold mixed with other metals.
- Purity in parts per thousand: This shows the percentage of pure gold in an item. For example, 24-carat gold has a purity level of 999.9 parts per thousand, meaning 99.99% of the material is pure gold.
Gold Purity Levels: Understanding 999 vs. 995
At the international level, gold purity is often expressed in parts per thousand:
- 999.9 purity: 999.9 grams of pure gold in 1,000 grams.
- 999 purity: 999 grams of pure gold with 1 gram of other metal.
- 995 purity: 995 grams of pure gold with 5 grams of other metal.
While 999 purity is ideal for long-term investments, 995 purity is considered the standard for trading purposes.
Why Hallmarking Matters
Hallmarking ensures that the gold you buy matches the claimed purity. In India, hallmarking is mandatory for gold jewelry and artifacts. The hallmark also helps you verify if you’re paying the right price for the purity mentioned. However, coins and bars are not legally required to carry a hallmark, so buyers should be extra careful when purchasing them.
What Can You Buy in 24-Carat Gold?
Though 24-carat gold is soft and unsuitable for making intricate jewelry, it is widely used for:
- Gold coins
- Gold bars
- Gold biscuits
When purchasing 24-carat items, always check for purity markings on the product. This ensures you get exactly what you pay for and avoid being overcharged.
Factors Affecting Gold Prices
The price of gold varies based on purity. 24-carat gold with 999 purity will always cost more than 995 purity. Typically, the price difference is around 0.4% to 0.5%.
For example, if 995 purity gold costs ₹1,00,000, then the 999 purity gold will cost around ₹1,00,400. So, it’s important to know the purity level while comparing prices.
Smart Tips for Gold Buyers on Dhanteras
- Check the Hallmark: Look for hallmark certification to ensure the authenticity of gold jewelry or artifacts.
- Verify Purity Levels: Make sure to understand the purity level you are purchasing—especially when buying 24-carat gold coins or bars.
- Compare Prices: Always compare the rates from multiple sellers to avoid overpaying.
- Buy From Trusted Sellers: Stick to certified jewelers to ensure you receive genuine gold.
- Ask for a Bill: Always take a proper invoice mentioning the weight, purity, and price to avoid future disputes.
Buying gold on Dhanteras is not just a tradition but also a smart investment. By following these tips, you can ensure that your purchase is worth the money and the occasion. Whether you are buying gold for sentimental reasons or financial security, make sure you understand purity levels, hallmarking standards, and price variations.
