KEY FACTORS FOR DETERMINING GOLD COIN VALUE

 

DETERMINE THE VALUE OF GOLD COINS?

 Gold has long been the most coveted precious metal on earth. If you talk about Sri Lanka, India and South Asian Countries, gold has a lot of cultural and religious significance. It is considered auspicious to buy and gift gold on special occasions like marriage and festivals. That being said, gold has a very high market value in the country with people buying different forms such as gold jewelry and gold coins.

Besides, gold is also a popular choice of investment, especially in the form of gold coins and bars. If you are planning to buy gold coins in the coming festive season, here are a few important points related to their evaluation. Carefully analyzing these factors will help you to determine the gold coin rate in the market.

 

key FACTORS FOR DETERMINING GOLD COIN VALUE

 

·         Purity

The purity of gold is measured in terms of Carat and Fineness with Carat being the more commonly used term. 24 carat is the purest form of gold which contains 24/24 parts of the metal. Next to it is 22 carat that contains 22 parts of gold and 2 parts of other metals such as silver and zinc. While there are other options like 18 carats and 14 carats, people generally prefer the purest forms, which are 24 carats and 22 carats to ensure getting better returns. Purest the gold coin, highest the rate and vice-versa.

Fineness, on the other hand, is defined as the weight of precious gold. For instance, 24-carat gold will have the fineness of 999.9 parts per thousand of purity.

 

·         Denominations

Gold coins are available to buy in different denominations, ranging from 0.5 grams to 8 grams in weight. However, the most popular gold coins preferred for gifting include 8 grams

 

·         Hallmark

Hallmark is directly related to the purity of the gold coin. Besides, buying a ruputed Hallmark gold coin will ensure getting good returns whenever you plan to sell, especially when treated as an investment.

 

1. Country Assay Office Logo

2. Purity of the gold item, in Carat or Fineness

3. Logo of the Metal Identification

4. Jewelry identification mark

 

·         Ease of selling

Ease of selling is an important factor when you buy gold coins for investment purposes and you would surely expect appraised returns in future. While purity, grade and hallmark play a key role in ease of selling, especially in the case of old gold coins, there are other factors like finding the right buyer.

If you have bought or are planning to buy gold coins from the bank, it may be noted that they will not buy back . Hence, always prefer registered jewelers or financial institutions that offer buyback, to stay rest assured.

 

·         Making Charges

Making charges is highly responsible for inflating the overall price of both gold jewelers and coins. However, these charges are for the intricacy of the jewelers and hence low in the case of gold coins. Further, it may be noted that making charges are not included in the returns at the time of selling. At the time purchase it will apply 10% making charge.

 

Keeping all these points in mind, it is important to ensure that you buy gold coins with little to no making charges. As a tip, you can look for schemes when there are discounts on making charges to be able to save on the extra cost and ensure maximum value.

We hope this information helps you to understand how the value of gold coins is determined.