Important Things to Know When Buying Gold

Important Things to Know When Buying Gold

Gold is the most precious metal in the world. Its rich glow is pleasant to the eye and ideal for various uses. As a result, many people are in the market searching to buy gold. However, buying gold is not an easy task, and there’re essentials you need to know when purchasing.

Here are the essential things to know when buying gold.

  1. Level of purity

The purity of Thai gold is the most important thing to check when shopping. You will find various types of gold with different levels of purity. These are measured in Karat; for example, 23k gold is 96.5% pure gold and 3.5% metals like silver or bronze. The purity levels define the different types of gold available.

They include:

24 Karat Gold 24k is a pure type of gold, measuring 99.9%, and is the most expensive. It doesn’t irritate the skin, and it’s highly resistant to tarnish and wear.

  • 18 Karat gold

18k consists of 18/24 parts gold. It has 25% of metals, such as copper and zinc, and it’s more durable.

  • 14 Karat gold

14k gold is58.3% pure and comprises other metals.

  • 10 Karat gold

The purity level of 10k gold is 41.7%, making it the lowest gold jewelry standard to be sold. It’s durable, but its low purity makes the gold appear dull.

  1. The price of gold

A spot price is the price of gold at any given time, which changes constantly. It’s calculated by averaging the cost of traders and professional brokers worldwide.

Therefore, predicting whether or not the price of gold will fall is hard. That’s because the price of gold is mostly standardized. However, you can compare or inquire from different sellers to see if a price reduction is possible.

  1. The weight of the gold

When buying gold, inquire about the weight of the gold. Remember, the price of gold is directly proportional to its importance. The heavier the gold, the more you will pay to buy it. However, ensure you exclude other weights for stud materials to get the exact weight of the gold. You can compare cost per gram from various sites or traders with weight information.

  1. Buy-back terms

Most gold sellers’ offers buy-back option to gold buyers. Therefore, as you buy, ensure you check the buy-back terms of the seller. Find out how much the seller will accept your gold if you want to exchange it later. And although you won’t get the total rate you paid, it helps you make buying and selling decisions.

  1. BIS certification

Before buying gold, visiting and searching the gold seller on the BIS website is essential. That helps you verify that the seller offers BIS certification. Verify the credentials to ensure you don’t fall victim to fraudulent sellers.

Also, don’t forget to ask for an invoice. The invoice helps you calculate capital gains when you sell the gold or solve disputes about gold ownership or its legality.

  1. Gold properties
  2. resistant to oxidation. Unlike other metals such as silver or copper, gold does not tarnish or lust.
  3. Not magnetic.Usually, magnets don’t effectively work on gold as they have weak magnetic force, unlike other materials such as iron. Therefore, if your gold leaps to a magnet, it might not be real gold.
  4. Thermal and electrical conductivity:since gold doesn’t tarnish, it’s a great conductor of electricity.
  5. Malleable: Gold can be pressed into fragile particles for filling teeth or infrared reflectivity.
  6. Sectile. Gold is a relatively soft metal that must mix with other metals to combat its weakness.

How to buy gold

  1. Find a reputable dealer

Buying gold is a serious financial commitment. So, make sure your investment transaction is effective by buying from a reputable seller.

  1. Compare the prices

Gold dealers charge more than the spot price. That’s because of the dealer’s fee and distribution charges. However, those prices vary, and you should compare them.

  1. Find secure storage

Gold is valuable but can be prone to security issues. Therefore, find a specific place or safe deposit box at the bank to store your gold. Other measures could include purchasing an insurance cover.


Gold is an essential asset that will yield a high return on investment. It remains stable amidst various economic crises, making it ideal for your financial security. But, know the different types in the market and what to avoid when shopping.