Planning to buy gold? Beware, all that glitters may not be real

The festive season is here and for many it doesn't matter if gold prices have risen to nearly Rs20,000 per 10gm. The love for the yellow metal among Indians prevails. DNA finds out the ‘parameters’ people look for and what should not be ignored while buying it.

Expert view
It is advisable to go in for hallmark brands
People usually buy gold during two major seasons — Dhanteras and Akshay Tritiya. People follow various trends while buying the precious metal.

There are people who buy gold on auspicious occasions, and there are those who buy gold every time prices drop. There are also people who are on the look-out for special offers or discounts.

With the increase in gold prices, the number of people who buy gold has not reduced. People still make it a point to buy gold on auspicious occasions. Many people invest in gold. We have a monthly investment scheme, which has over three lakh members.

There are many others who buy gold biscuits and bars. To ensure that gold is pure, we have a ‘karat meter’. With this, the components are checked using an X-ray. Many come to us to have their jewellery tested, as the device can check the purity of gold. While buying gold, it is ideal to go in for hallmark brands. You can also go in for a mobile meter, which can help you test the metal yourself.
Niteesha Laddha, retail marketing manager, Tanishq

It is part of our culture and heritage
Gold has a good appreciation value, even after five years one will be able to get good returns. Other items like cars or luxury items have a depreciating value.  Gold jewellery has a special place in Indian culture, so it is part of our heritage.

Indians are know to believe in saving money, so they prefer to invest in liquid commodities.

Gold is on a bull run, and people in India and across the world are going bullish with their investments.

Even at Rs20,000 it is not a bad investment.

The Indian government has put in place a process for gold certification. There is a hallmark system for jewellery. There is also the government’s BIS standard.

The stamp on the jewellery — 18 carat or 22 carat — indicates how genuine the gold is. Hallmarking is a process certified by the government for gold jewellery.

This Diwali, the antique, jadau concept is new and is popular among consumers. Jadau is an heirloom which represents Indian culture and jewellery, which one can pass over to coming generations.
Samir Sagar, managing director, Manubhai Jewellers

I always buy gold from a trusted jeweller
I always prefer to buy gold from a jeweller I trust. The quality of gold depends on the people you buy it from, that’s why I buy gold based on the company’s or jeweller’s reputation. I make it a point to buy 22 carat gold because the glitter and polish are to my liking. I haven’t bought any other type of gold. I usually buy gold only on auspicious occasions. I have also bought gold when the prices were low or when prices were due to rise, like many people have done. If it is a good deal I made sure I have bought some. I haven’t bought gold lately because of sky-rocketing prices. However, if there is a special occasion, I won’t hold back.
Lekha Rao, doctor

It’s during festivals that people splurge the most
It’s considered auspicious to purchase gold on certain days of the year. Dhanteras is one such day besides the festival of Diwali, when people purchase gold. I will not buy jewellery for myself, but I will surely gift it to my wife and mother. I want to buy bangles and necklaces for them. The prices are too high this year, but I am sure that gold won’t get dearer this year.

Diwali comes once in a year and it’s time for people to splurge.
It’s better to spend on gold rather than on eating out and clothes.
In a way, buying gold is a lifetime investment, so despite soaring prices, I will purchase gold ornaments this Diwali.
Maheshwar Toraskar, sales associate

I will go by my dad’s judgement before buying
Every year we buy gold as it brings good luck, as per our traditions. We make it a point to buy gold for Dhanteras. This year, gold prices are very high — close to `20,000 — but that won’t stop us from buying gold. Prices will increase, so one cannot stop buying gold because of that. We will go in for a small biscuit or a gold coin. We have been buying gold from the same shop for over a decade. My father is an expert when it comes to purchasing gold. He has a stone with which he checks its purity. Hence, I go by my father’s judgement. But it is important to have standard certification of checking quality. I am not sure if there is such a thing in place.
Tapas Parida, IT executive

Branded jewellery is more reliable
Usually we prefer to purchase gold from branded jewellers. The reason is simple — it is easier to trust branded jewellers.
I always check for the trademark and since I mostly purchase from major brands, I can rest assured that I am getting a quality product. Many people buy gold from small jewellers but the chances of getting cheated are higher. We generally buy gold to gift it to people at weddings or as an investment, in the form of gold biscuits. The purchase is made on auspicious days like Dhanteras. Earlier, people used to look at gold as jewellery but now it a very good investment option too.
Manka Mishra, accounts manager

Better to invest in gold than mutual funds
We always buy gold from our family jeweller. We have been buying it from them for ages; hence, the trust factor. Also, our jewellers give us a certificate along with the bill, which guarantees the gold’s purity. There aren’t set parameters we look for while buying gold, if we trust the jeweller. Like everyone else, we buy gold before festivals and for special occasions. My son is getting married next year, so we’ll be buying gold. Earlier, gold was seen as a prestigious item, but today it has become an investment for many.
Gold prices will only increase. Therefore, investing in gold is better than investing in mutual funds.
Mamata Roy, homemaker