Gold is undoubtedly one of the global emblems of riches. The ancient civilization treasured this metal as a symbol of power and rank due to its scarcity and beauty. The obsession with gold jewelry remained unchanged virtually over the millennium. The attractiveness of the metal made it one of the tempting assets. People purchase gold for both investment and personal use.
Let us take a look at whether it is better to invest in gold jewelry or gold bars.
Gold Jewelry Vs. Gold Bars
Here are some of the characteristics that can provide an insight into whether they must invest in gold jewelry or gold bars.
Gold Jewelry
While considering gold jewelry, one must keep these criteria in mind.
● Availability
Almost every jewelry house sells gold jewelry.
● Credibility
When you want to select a jeweler for purchasing your Gold jewelry, you must always do your homework. Especially if you are buying it for long-term investment, make sure that it is hallmarked. It indicates that the purity of the metal gets validated through a governmental process. Hence if you plan to sell your jewelry, you can receive the true purchase value.
● Maintenance
When you are planning to buy gold jewelry, you must have a proper and secure location to store them. It can include expenditures like insurance or locker rental.
The insurance cost of the jewelry differs from one insurance to another. Few companies offer jewelry protection in their house insurance plan.
● Cost
While buying gold jewelry, you have to pay 3% of GST at the current rates. If you plan to sell your jewelry within the three years after your purchase, your gain will get categorized under the short-term capital gain. It would be calculated at the regular tax rate while following no rebate.
Gold Bars
When you want to buy Gold bars you must keep these criteria in mind.
● Availability
You can get gold bars in both 22 carats and 24 carats. These birds are available in quantities of either 1 kg or 100 grams. There are different non-governmental sources, including bullion brokers or jewelers, who put bars of gold for sale.
● Credibility
If you want to buy gold bars, you need to have the same level of diligence that you have while buying gold jewelry.
● Maintenance
The cost of storing the bar is comparable to the cost of storing gold jewelry.
● Cost
One requires paying the same amount of taxes as gold jewelry. Hence when you purchase gold bars, you have to pay 3% of the cost as GST. But when you put the bars of gold for sale, you may not be able to recoup the amount.
It is a belief among Indians that if you want to make safe investments, you must invest in gold.
Which Is Better
Gold jewelry is one of the common ways to purchase gold. As you buy the jewelry from an authorized seller, it would provide you with certain insurance and tax benefit. But apart from the gold cost, you have to pay an extra charge for craftsmanship.
On the other hand, if you purchase gold bars, you need to be careful about their storage. You can later use it to create the jewelry of your own choice and design. You can also get them in multiple types depending upon the weight of the product.
Why Should You Buy Gold
During the economic uncertainty, any smart investor would opt for investing in this precious metal. It helps diversify the portfolio and protect the hard-earned money of the investor against the economic downturn. The paper currency fluctuates more often. And if you want to avoid the race associated with unstable paper-based currency, you must make safe investment decisions like investing in gold. Whether you buy gold jewelry or gold bars, it is your personal choice.
The most crucial aspect that one must remember while choosing between the bars and jewelry is that you must consider an authorized dealer or shop to purchase your metal. It can provide you with a warranty and guarantee on the metal. At the same time, you must also look for the hallmark before purchasing the gold.