Gold is one of the valuable assets or metals in the Indian market. It has carried its incredible legacy for years. Nowadays, whether women need to buy jewelry or investors need to invest hard-earned money in a secure place, all of these people look at gold. However, people invest in gold jewelry for various reasons. Therefore the yellow metal does not only bling but also keeps increasing its worth over time.
Therefore, this historically valued asset can be a good source for many investors to secure their money and avail significant returns in the future. So, if you have an investing mind and are willing and attracted to gold investment, this article is for you. Here I will cover the significant benefits of buying gold coins from banks and discuss other aspects to make a wise investment decision.
Benefits of Buying Gold Coins From Banks
1. You Can Get A Higher Rate Of Return
Some investment experts have suggested that investors must invest at least 5 to 10 percent of their entire portfolio fund. It not only allows you to diversify the fund available for investment but also reduces the risk involved in investment or trading. Its prices always go up, and when the prices of bonds or shares fall, you can balance that loss quickly. Therefore, whether you buy the gold coins from banks or any local market. You can balance the loss and expect increased return after some time, even the low phases of the market.
2. A Highly Demanding Asset
Gold coins are one of the oldest forms of investment and are famous in the general market. It shows it has significant value and always stays in demand. Therefore, it can be a good source of income and convert the investment into fast cash during an emergency. Gold coins consistently show an increase or upward trend in their price and offer quick money whenever needed.
3. Invest in Certified Gold
Whichever gold coin you buy from the banks, all of them are certified. So, when you buy the gold coin in the bank, you are not buying the gold coins ordinarily available in the market. But these are the coins that are minted in the mint of the Indian government. Also, they have BIS Hallmark or Bureau of Indian Standards Hallmark. Therefore, when you invest, you stay sure that you are getting 24 karat gold with 99.9% purity.
4. A Flexible Investment Option
Buying gold coins allows investors to enjoy flexibility because they can invest in smaller capacities as well. The bank allows its gold coin investor to buy smaller quantities of gold coins like 5 grams, 10 grams, or gold bars as per their investment budget. Thus, if you want to invest as per your investing capacity at your own time, then you should be buying the gold from the banks. Also, there is no fixed amount that you need to meet to invest in the bank’s gold coins.
5. Transparent In Terms Of Prices Of Gold
There is a significant difference between buying gold coins from a local merchant of Gold or local jeweler and banks. Because while buying gold from a local jeweler, there might be an issue of transparency, but when you buy gold coins in the bank or online. You stay sure that you are getting high-quality gold at a highly transparent price. These prices are regulated by MMTC or Metals and Minerals Trading Corporation, which is an Indian government body to ensure healthy and transparent pricing for the buyers.
6. There Are Zero Risks Of Investing In Fake Gold Coins
Another benefit of buying a gold coin from the bank is that every gold coin comes after passing the assured quality test. Every coin comes up with high-level security and anti-counterfeit features. Also, every coin has a unique barcode with a serial number to identify you will be getting precious gold. So, while investing in the gold coins offered by the bank, you stay away from the significant loss that can occur if you buy fake gold coins or low-level gold coins.
7. You Can Monetize It Easily
You can monetize your gold coins as well whenever you wish to convert that into cash. However, selling the gold to a jeweler can be complex or costly because they can implement several costs. The gold needs to be in melted form to check the quality standard and reshaped to sell those again in the market. But you also need to find a buyer who can buy all those gold coins or bars you are carrying to sell. Therefore, if you have gold coins sold by banks, you can sell those in the open market. Generally, and in most cases, you may be selling the gold coins to MMTC because they have a buy-back option for the gold coins and bars you have. So, you can convert your coins into cash by selling those in the open market to MMTC.
What Do You Need To Consider Before Buying Gold Coins From Banks?
Here are some crucial things you can consider before buying gold coins and bars from the banks.
- Check the Hallmark provided by the Bureau of Indian Standards to ensure the pure quality of gold coins you are going to buy. Here you can mainly focus on the BIS logo, Karat for purity, jewelers identification mark and number, and the logo of assaying.
- You need to check whether the gold coin is 24K or 22K because it is the essential step to analyze the purity of the gold coins. Generally, 24K gold is considered the purest and highest quality of gold. In contrast, 22K gold contains 22 parts of gold and two parts of other metals like Silver to ensure durability.
- It would help if you remembered you could not sell back the gold coins to banks in return as per RBI’s directive. Therefore, you will be required to sell these coins in MMTC. Therefore buy the coin that does not affect your budget, and you can sell those in MMTC quickly.
So, in this article, we discussed the benefits of buying gold coins from banks and learned things you need to consider before buying gold coins from banks. I hope you will find this article informative and essential to diversify your portfolio fund in the safest form of investment to attain a higher rate of return.