Traditionally, Indians have held a fascination for gold, and the trend continues to this day.
As per the World Gold Council data, the gold consumption in India was the highest in 2021 over the last five years.
People buy gold not only as an accessory but as a future investment to use in unforeseen financial emergencies.
One of the best ways to use gold for arranging cash is by taking a loan against gold.
However, customers often come up short when it comes to having adequate information about purchasing gold.
Mistakes to Avoid before Purchasing Gold
Due to oversight and carelessness, or lack of information, people make several mistakes while purchasing gold. They may end up buying lower-quality gold or less gold for a higher price.
Avoid the following mistakes to get the best deal on your gold purchase:
- Inaccurate weight of gold: Jewelers in India sell gold by the weight of the gold article in its entirety. Often the gold ornament is studded with stones and gems. While jewellers weigh the gold without these studded stones, in some cases, the jewellers may not do so. In such cases, it deprives the buyer of the real weight of the gold. Due to this, customers often end up paying more than the actual price of the gold they get. With a Muthoot Gold Loan, you are ensured that the right weight of the gold.
- Making charges of the ornament: Every jeweller adds a making charge on every piece of gold jewellery. It is the labour charge they take for the making of the gold ornament. Some jewellers charge exorbitant making charges on gold ornaments. A customer can negotiate on the making charges. It will significantly bring down the cost of the jewellery for them. But, with gold loan companies, such charges are non-existent.
- Purity of gold: The purity of gold is measured in karats. Do remember that 24 karat is the purest form of gold and is 99.9% pure. Next is 22 karat gold, which is 92% pure. Since 24 karat gold is not fit for making gold jewellery, jewellers use 22, 18, or 14 karat gold. Reputed jewellers in India make gold jewellery out of 18 or 22 karat gold. You can get a higher loan amount against gold of higher purity. Therefore, always check the purity of the gold and look for the Hallmark sign on it before buying. Muthoot FinCorp offers up to 75% of the gold’s value as Muthoot gold loan under different gold loan schemes.
- Buying jewellery from the wrong store: There are several branded and non-branded jewellers across all cities in India. It is advisable to buy gold from a reputed jeweller as they Hallmark their jewellery and are often more reliable. Random jewellers usually mix non-precious metals and low-quality gems in gold ornaments to bring down their cost, but they sell the jewellery at the price of pure gold. If the buyer tries to take a gold loan against low-quality jewellery, he may get a much lower value than what he should get.
- Making procedure of the gold ornament: Gold jewellery can be man-made or machine-made. The cost of making machine-made jewellery is cheaper. Ideally, the making charges on such jewellery should be lower than the making charges for hand-made jewellery. Therefore, check the making type of the jewellery and negotiate on the making charges accordingly. https://generaltech.org/piso-wi-fi-vendo-how-to-access-the-admin-panel-at-10-0-0-1/
- Buying gold at the right time: The price of gold fluctuates daily. It goes up during festival and wedding seasons. Buy gold in off-seasons when the price of gold is lower, and sellers offer discounts and schemes to attract customers.
Using the Gold to Get a Gold Loan
One of the best uses of gold to arrange urgent cash is taking a gold loan. The higher the purity and weight of the gold, the more the loan that the lender will sanction against it.
You can take a loan against your gold jewellery, ornaments, coins, and bars from a trusted lender like Muthoot FinCorp.
Muthoot FinCorp offers gold loans starting at only 11.99% per annum under different gold loan schemes.
The loan approval process for the Muthoot gold loan is quick and hassle-free.
The customer can get a gold loan within minutes of pledging their gold and submitting the documents.
The repayment options at Muthoot FinCorp are customer-friendly. Customers can repay the loan in monthly instalments or bullet payments as per their convenience.
Read More About Smarts Timer.