Planning to buy gold, diamonds or gems this festive season? Here are a few things to keep in mind

As the festive season approaches, many individuals are considering investing in precious commodities like gold, diamonds and gems. This time of year often sees increased demand for these valuable assets, making them enticing options for trading. However, it's crucial to exercise caution and be well-informed when participating in such transactions. In this brief guide, we will explore some key factors to keep in mind to ensure a successful and secure trading experience during the festive season. 

From assessing market trends to verifying the authenticity of your purchases, these insights will help you navigate the world of gold and gem trading with confidence.

As we approach the peak of the festive season, the charm of buying and wearing diamonds becomes ever more enticing. According to Ankit Singh Kimtee, Founder of DiamondXE, one of the foremost considerations is budgeting wisely – an essential step before diving into the world of diamonds. 

“Research and knowledge about the 4 Cs - cut, colour, clarity and carat - are paramount. Also, buying diamonds online, although not yet a common practice, offers significant advantages. It enables customers to compare, and select from an unthinkable number of diamonds, with all necessary details at their fingertips. Certification forms the foundation of authenticity in the diamond trade. Additionally, choosing a retailer that provides strong after-sale support and options for exchange and buyback adds a layer of security, making purchases risk-free,” Kimtee said.

Investing in gold and precious gems during this festive season can be a lucrative choice, but it's essential to navigate wisely. With the evolving landscape, digital gold options like Gold ETFs, Sovereign Gold Bonds, and Gold Mutual Funds are gaining prominence. According to Hardik Mangla, Founder, of Demiluxe, these digital alternatives offer benefits like easy storage, lower investment thresholds, and minimal charges compared to physical gold.

“While gifting physical gold remains a tradition, digital gold shines for long-term investments, such as education or weddings. Digital gold incurs only a one-time GST of 3 per cent, unlike Gold ETFs and funds with recurring annual charges. Gold ETFs, akin to stocks, provide an avenue to invest in dematerialised gold. Sovereign Gold Bonds offer an additional interest edge, while Gold Mutual Funds involve trading based on Net Asset Value,” Mangla said.

According to Baruni Verma, Founder and CEO, Starkle there are some vital factors that customers should keep in mind while purchasing gold.

First and foremost, inspect the jewellery for the HUID hallmark, which signifies authenticity and purity. This hallmark, known as Hallmark Unique Identification, guarantees that the gold meets stringent quality standards. It's your assurance of a genuine investment. Secondly, look for the Bureau of Indian Standards (BIS) logo at the seller's store or website. The presence of this logo confirms that the gold adheres to national purity standards, reinforcing your confidence in its quality,” Verma said.

Equally important is understanding the seller's return and exchange policy. This knowledge ensures you're prepared should your purchase not meet your expectations. Lastly, inquire about any repair warranty offered by the seller. A robust warranty provides peace of mind, offering assistance in case of unforeseen damage or issues with your cherished gold jewellery. Armed with these insights, you can make a wise and secure investment in the timeless allure of gold.