Buying gold on Dhanteras, keep 3 things in mind: You can invest in 4 ways, expected to reach ₹ 1.60 lakh by next year

1. Physical Gold: Choose biscuits-coins, avoid jewelery

Physical gold means buying gold biscuits, coins or jewellery. But when buying jewellery, there is a 10-20% making charge. Jewelery does not even include 24 carat pure gold. Therefore, if you want to invest in gold then you should buy biscuits or coins.

2. Gold ETF: Easy trading like stock market

In Gold ETF, gold can be bought and sold like shares. These are traded on NSE/BSE. In this, the price increases and decreases according to the price of gold prevailing in the market. To buy it, it is necessary to have a demat account. There is no need to worry about theft or purity in this.

3. Payment Apps: Invest even ₹ 1 with digital gold

Smartphone users can buy digital gold on Paytm, GooglePay, PhonePe or Amazon Pay. This is 24 carat pure gold, which is stored with certified partners like MMTC-PAMP or Safe Gold. A minimum investment of Rs 1 can be made in this.

4. Gold Mutual Funds: Invest in SIP or Lumpsum

In this, fund managers invest money in gold ETFs and gold related stocks. These are not traded on NSE or BSE like ETFs. Demat account is not required for this. Like other mutual funds, investments can be made in both SIP or lumpsum modes.

Keep 3 things in mind before buying gold…

1. Check the purity of gold: It is measured in carats. 24k gold is 99.9% pure, but is too soft to make jewelry. Jewelery is made from 22K (91.6% pure) and 18K (75% pure) gold.

Every piece of genuine gold jewelery has BIS hallmark, which guarantees purity. This is a government standard, which prevents adulteration. The quality and specifications of the jewelery are written in the hallmark.

You can also do some easy tests to check the purity of gold. Nitric acid testing is considered somewhat advanced and reliable. If its kit is not available then it is available from jewelers.

The test involves making small scratches or filings on the gold item to access the underlying metal, as the plating on the surface may mask the results. Now a drop of acid is put on the gold.

• There is no reaction with 24K gold, because gold is inert towards nitric acid.
• Low karat gold may have a mild reaction due to base metals.
• If the gold is fake, a reaction will be visible, producing a green or brown color.

2. Compare Making Charges: Check the rates of different jewelers, do not overpay. Simple pieces charge less and intricate designs charge more. Some brands also offer options with zero making charges.

3. Verify Current Gold Rate: You can check this from websites like IBJA. However, the rates available from jewelers may be slightly higher. This varies from city to city.

Gold gave 200% return in last 5 years

In October 2020, it was ₹41,000 per 10 grams, which reached Rs 1.30 lakh today. That means it has given a return of around 200% in 5 years. Global tension, inflation and Fed rate cuts have given it a boost.

The price of gold has increased by Rs 54,700 so far this year. On December 31, 2024, 10 grams of 24 carat gold was worth Rs 76,162, which has now become Rs 1,30,874. That is, around 70% return has been given.

Is this the right time to invest in gold?

• Pankaj Mathpal, MD of Optima Money Managers said- Gold has given more than 50% returns in one year. The reason for this is the uncertainty of global trade and purchases by central banks. But now investors should be careful while investing money in gold.
• Wealth Global Director Anuj Gupta said- There is no need to rush to buy gold right now. There may be a correction in gold prices after Diwali. This dip can provide a better opportunity to enter the market. So start buying gold only after Diwali.