Hedging Against Gold Price Rise
It was wedding season and there was an air of rush in almost every home, for either attending a wedding or performing a wedding in house. The entire market area, invitation card shops, garment shops, Jewellery shops, high end boutiques, florist, taxis, caterers, bus stations and wedding halls drenched with people. There was a chaos in the air as it was summer vacation cum marriage season. Amidst all this there was a reason for me to celebrate as well, my bestie and a long time friend was getting married and the onus of her big day was on me. Shopping went in full throttle, we have researched and re researched thousands of South Indian Jewellery designs, wedding sarees, matching bangles, Zardosi lehangas, matching sandals, and practically everything that had a bride tag to it. After all it was a onetime event and we didn’t want anything that was less than perfect.
In my weeks of shopping, I could conclude that gold played a vital role in all the Indian weddings. It was the central to both the parties and a major chunk of money goes into buying gold Jewellery. There was a societal perception that only parents of a girl child have to save up for future gold purchases, in the current times this myth no longer applies. Every Indian at some point in their lives makes gold purchases. In my friends case, her father had been wise in saving up gold coins than gold Jewellery and then exchange them on the day of actual Jewellery buying. In cases like these the 24K gold bar price is calculated and is proportioned for 22K gold Jewellery. This was a brilliant way to not fall prey to the exponential rise in gold prices and hedge oneself from this.
How to accumulate gold coins?
Well the prospect of buying 22K gold Jewellery and adorning new designs at every occasion is often tempting. But, with victories over little favorite temptations you can save a big lot of your money.
1. Indian festivals days are the major days where we are all lured to buy gold. A Judicious use of these buying occasions helps us accumulate gold coins in smaller chunks. Atleast a small amount of money should be set aside to buy gold coins.
2. Occasions like Akshaya Tritiya, Dhanteras, Sravan Masam are few special occasions where every Indian household invests money to buy gold, one should necessarily look at buying gold coins on these days.
3. Another way of accumulating gold coins is when you gift your children in appreciation of their achievements, milestone events, birthdays etc. We are all used to either giving cash to our children or buy their favorite things. Instead educate them on good investment options, teach them to save for future, open a bank account, buy gold bonds or gold coins and gift them a lasting saving habit.
They may be disappointed temporarily, however they would eventually understand the importance.
Where to buy gold coins?
Every retail Jewellers hold gold coins for sale, other than this you can find gold coins at the following places too.
1. Gold smiths
2. Family run gold shops
3. MMTC outlets
4. Nationalized and Private banks across India
Things to remember while buying Gold Coins?
The question of buying gold coins has always been a tough one as there are numerous options available in the market. But, there are few aspects that one should look into while purchasing such as:
1. Availability of desired denomination of gold coin
2. Availability of certified gold coins like hallmarking and Assay certification which gives credibility and a proper resale value while selling it back.
3. Availability of embossing like Lakshmi gold coin, Ganesh gold coin (which is ideal for gifting or for pooja purpose)
4. Availability of buy back which banks do not offer, only retail Jewellers do. They accept gold by way adjusting against customers purchase and not for cash.
With you reading this, you should be future ready to head on beat the gold price rise by investing with wisdom.
Wishing you Happy gold Shopping!!