Things you should know before buying Gold Coins

Posted by shiv kumar on

For many, gold will feature high in their shopping lists as buying the yellow metal is considered auspicious around Diwali especially on the eve of Dhanteras.

People buy gold not only in the form of jewellery, they even purchase coins.

For those looking at buying gold coins, here are a few things you must know.

  • Weight:
    Most organised refiners produce coins ranging from 0.5g to 100g. The most popular weights are 10g and less. Many manufacturers also produce a standard range of small coins from 1g, 2g, 4g and 8g (also known as guinea).
  • Purity of gold coins
    There are two ways to measure the purity of gold coins - Karat and fineness. Karat is the more commonly used measure of gold purity.
    24 Karat (KT) is considered to be the purest form of gold which contains 24/24 parts of gold.
    Similarly, 22KT gold contains 22 parts of gold and 2 parts of other metals such as zinc or silver to make it more durable while making jewellery.
    Fineness is another parameter used to measure the purity of gold and is mainly to find the purity of 24KT gold.
    As per the World Gold Council's website, even 'pure' gold can contain minute amounts of mixed impurities which the manufacturer has not been able to remove.
  • Packaging
    Jewellers recommend that one should not tear or open the tamper-proof packaging of the gold coin in case one intends to resell it, as the packing ensures the credibility of the purity of the gold coin. When you purchase a coin make sure that it is hallmarked. Hallmarking ensures gold coin’s purity that you are assured of getting what you are paying for.
  • Where to buy:
    Coins are primarily sold at Jewellery outlets. They will also exchange them for jewellery or buy them back whenever you need. Jeweller’s websites and e-commerce sites also sell gold coins. You can also purchase coins from select banks as well.