Exactly a month back, on April 22, the gold rate in India touched a record all-time high of Rs 1 lakh for 10 grams. Then, you probably said to yourself – Gold is becoming unaffordable now.
It was perhaps true too. Gold prices have moved sharply higher over the last 1-year. In fact, Gold is up by over 40% and by 70% over the last 24 months.
The FOMO factor – the fear of missing out – is fast catching up with most Indians. At higher prices, it becomes a tad difficult to lay hands on the yellow metal.
Higher gold price is like inflation – you end up buying less for the same amount of Rupees. In 2020, you could buy ten grams of gold with Rs 50,000; today it fetches 5 grams only!
So, what do you do? Buying gold cannot be a one-time exercise. You need to keep accumulating it over time as a part of your overall financial plan.
Here comes the crucial part. You need to be clear on why you need to buy gold – is it for investment purposes or as a wearable or for wedding purposes?
If you are looking to acquire physical gold, jewellery involves 5 to 20% of ‘making charges’, eating into your capital amount. So, another cost-effective option could be to consider buying gold coins.
Gold Coins
Yes, gold coins similar to the Rs 1, Rs 5, or Rs 20 denominations that you carry in your wallet. The big difference is that these are made of pure gold.
Gold coins come in varying denominations, from 0.5 grams to up to 100 grams, and with different purity levels of 22 or 24 carat.
That’s what makes them affordable. Plus, converting it into cash is also easier. You just need to sell a few of them to meet your liquidity needs.
But, at higher gold prices, are people really buying gold coins?
“Gold coins are definitely seeing more demand, especially with gold prices on the rise. Customers see them as a smart, low-risk investment that’s also easy to sell off when needed. What’s great is that they come in various weights, so even small investors can buy them comfortably,” says Piyush Gupta, Director, PP Jewellers by Pawan Gupta.
So, where do you buy them? There are MMTC-PAMP government-backed outlets and private jewellery showrooms in your city, or on online platforms.
“Coins from reputed outlets will also help in ease of selling, fetching a better resale value,” says NS Ramaswamy, Head-Commodity desk and CRM at Ventura.
Buying gold coins can be a tricky affair. There are different gold rates for every denomination and corresponding purity. An intricately designed coin could be pricier even if the denomination and purity are similar. Be aware of the watchouts.
“Look for 24 Carat purity (999 or 999.9 fineness), ask for a detailed invoice, and ensure you get a certificate of authenticity. Also, understand the GST and any other applicable charges. And for smart investing, always check the seller’s buy-back policy—because liquidity is key,” says Aksha Kamboj, Vice President of Indian Bullion and Jewellers Association (IBJA), and Executive Chairperson, Aspect Global Ventures.
Gold Prices
Gold currently trades at $3,360, a shade lower than the all-time high of $3,500 recorded on April 22. Will the gold price move higher? Nobody knows for sure, but the current winds of uncertainty—from tariffs to the worsening of the US debt crisis—may offer gold prices a boost.
Experts predict a golden future for gold, making it more unaffordable for many Indians. ‘Bond King’ Jeff Gundlach, CEO, DoubleLine Capital, predicts gold will climb to $4,000 per ounce, another 15% upmove from current levels.
24k gold rate today in India is Rs 95,950. You have no control over the prices, but what you can do is accumulate gold over time if it fits in your financial plan.
Buying gold coins is a simple, easy, and affordable approach with fewer hassles of storage and comes with ample liquidity in times of emergency.
The best part is that you have them in your possession as a real asset equivalent to money. As J.P. Morgan stated in his testimony before Congress in 1912, “Gold is money. Everything else is credit.”
Also Read: Gold price skyrockets; Buyers opt for 18 carat over 22 carat gold