It’s time for Diwali and Dhanteras again, and jewellers across the country are trying to lure customers with offers and discounts. Many people wait throughout the year to invest in gold during Diwali as it’s considered to be an auspicious time. Investing in gold during this time is believed to bring in good fortune and wealth.
PC Chandra Jewellers is offering an exchange of old jewellery for new jewellery, a 25 per cent discount on making charges of all jewellery, and 100 discounts on the value of diamonds and astrological stones. Malabar Gold and Diamonds is offering a free 200 mg of 916 purity gold coin for every Rs 50,000 purchase of gold jewellery.
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However, do you think it’s wise to invest in gold during this time? What should you keep in mind?
Says Gaurav Goel, entrepreneur and Sebi registered investment advisor: “One important consideration while buying these high-value items is to understand the requirements of these purchases. If the objective is an investment and not as a fashion accessory, then it is better to purchase digital gold and silver through various digital options like exchange-traded funds (ETFs), sovereign gold bond funds or mutual funds. More often than not, gold can be purchased at the current market price with the least expenses, zero making charges, and fraud chances are minimal. The convenience of purchase and sale is also high and the cost differential is substantial.”
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On the other hand, if the objective is to wear these metals as an ornament, then customers have no option but to buy them physically from the market. Any festive offers in terms of discounts, or reduction in making charges are welcome. However, it makes sense to do a thorough check on the credentials of the seller, the purity certificate, total making charges, hidden costs, etc.
Says Renu Maheswari, chief executive officer and principal advisor, Finzscholarz Wealth Manager, and a Sebi-registered investment advisor: “Investing in gold as an asset class is a must for any portfolio. Especially because there is a high probability of gold giving good returns in the immediate future. Jewellery, however, is not an investment. Take advantage of these offers if you want to wear them and are fond of jewelry. Use gold ETF and gold funds for investment.” However, if you want to invest in gold physically, it could be through gold coins or bars.
You must also compare prices at different jewellers while making any purchase. Visit different jewellers, and make sure you are getting the best deal.
