This article will help you with what you should know before buying gold jewelry this Diwali which is just around the corner. Many Indians would line up to buy gold, online or offline during Diwali. After two lean years of the pandemic, gold sales are expected to soar this year. But before you too, join the trend, here's what you should know, read till the end.
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Many go buying gold or silver on the auspicious occasion of Diwali with expectations of quick reward in terms of rising prices but it may not always come true. In the last year, gold prices in rupee terms have gained only 4.6 percent whereas silver has lost 12.41 percent.
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The rise in US interest rates and the likelihood of the hawkish stance of the US Federal Reserve converting into rate hikes, which may go well into the next year as well, may keep gold prices at the lower end of the range,” says Joseph Thomas, Head of Research, Emkay Wealth.
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The gold purchased online are equally reliable and pure vis-a-vis when you buy from the jewelry shop or from the bank. All leading online shopping sites will have a section to buy authentic gold, silver, and platinum valuables. Choose gold in the form of bars or coins in tamperproof packing.
Digital Gold is becoming a hit slowly amongst Indian though not physically in your hand. But it is also catching up, experts advise staying with regulated options such as ETF (Exchange Traded Funds) or sovereign gold bonds.
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Silver is cheaper but it is more volatile than gold. So only if you are going to use it for daily use like utensils and decor items, you can go for it, that too for the long term.
Fund houses have also launched schemes that invest in a mix of units of gold and silver ETFs. The idea is to offer exposure to both precious metals under one scheme. Since silver is more volatile than gold, investors are better off holding both precious metals together as it may help contain volatility.
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