There are several ways to invest in gold:

• Physical Gold: Jewellery, coins, and bars
• Digital Gold: Gold ETFs, sovereign gold bonds, and digital gold platforms
• Gold Funds: Mutual funds that invest in gold-related assets

The best option depends on your investment goals, risk appetite, and investment horizon.

Financial advisors typically recommend allocating 5-15% of your investment portfolio to gold. This provides a good hedge against inflation and market volatility without overexposing you to a single asset class.

Yes, sovereign gold bonds (SGBs) are considered one of the best ways to invest in gold because:

• They offer 2.5% fixed interest per annum
• No making charges or storage costs
• Capital gains tax exemption if held until maturity
• Backed by the Government of India

Gold prices fluctuate due to several factors:

• International markets: Global gold prices set the baseline
• Currency exchange rates: Especially USD to INR rates
• Demand and supply: Seasonal demand during festivals
• Government policies: Import duties and taxes
• Economic factors: Inflation, interest rates, and economic stability

The price difference is based on purity:

• 24K gold: 99.9% pure, highest price per gram
• 22K gold: 91.6% pure, priced lower than 24K
• 18K gold: 75% pure, priced lower than 22K

The price difference is proportional to the gold content. For example, 22K gold is typically priced at (91.6/99.9) = 91.7% of 24K gold price.

Making charges are the costs involved in crafting gold jewellery, which include:

• Labor costs for artisans
• Design complexity
• Wastage during manufacturing
• Overhead costs of the jeweler

Making charges can range from 2% to 25% of the gold value, depending on the design complexity and jeweler.

BIS hallmarking is a purity certification of gold jewellery by the Bureau of Indian Standards. It involves:

• Testing the jewellery for purity
• Laser marking with BIS logo, purity grade, and other details
• Assuring consumers of accurate gold content

Hallmarking is mandatory for gold jewellery sold in India.

You can verify hallmark authenticity through:

• BIS Care App: Scan the HUID (Hallmark Unique ID) number
• BIS Website: Verify HUID number on bis.gov.in
• Physical inspection: Check for all 5 components of hallmark:
  1. BIS logo
  2. Purity in carat and fineness
  3. Assaying center mark
  4. Jeweler's identification mark
  5. Year of marking code

There is no difference between 916 and 22K gold - they represent the same purity level:

• 22K: Means 22 parts gold out of 24 parts, or 91.6% pure gold
• 916: Means 916 parts gold out of 1000 parts, or 91.6% pure gold

Both terms indicate gold that is 91.6% pure, with the remaining 8.4% being other metals for strength and durability.

The best time to buy gold depends on your purpose:

• For investment: When prices are relatively low, often during non-festive seasons (March-July)
• For jewellery: During festival sales and wedding seasons when designs are latest, but prices may be higher
• Systematic investment: Regular purchases through gold ETFs or SIPs regardless of price fluctuations

For pure investment purposes, gold coins are generally better because:

• Lower making charges compared to jewellery
• Easier to sell with minimal value loss
• Standardized purity and weight
• No wastage during resale

Jewellery involves making charges (10-25% extra) and may have value deduction during resale due to design being outdated.

When buying gold, always ask for:

• Itemized bill showing gold weight, purity, making charges, and GST separately
• BIS hallmark certificate if applicable
• Jeweler's authenticity certificate
• Purchase receipt with jeweler's seal and signature

These documents are essential for insurance, resale, and exchange purposes.

When selling gold jewellery, the value is calculated as:

(Gold Weight × Purity Percentage × Current Gold Rate) - Wastage/Making Charges Deduction

For example, for 10g of 22K jewellery at ₹5,000/g 24K rate:

• Pure gold value: 10g × 91.6% × ₹5,000 = ₹45,800
• Less wastage (typically 2-10%): ₹45,800 - 5% = ₹43,510

Hallmarked jewellery typically has lower wastage deductions.

The best places to sell gold jewellery include:

• Banks: For gold coins and bars (some banks buy back their own products)
• Reputed jewellers: Often offer buy-back schemes
• Specialized gold buyers: Companies that specialize in gold purchase
• Online platforms: Digital gold selling platforms

Always compare offers from multiple sources before selling.

Tax implications when selling gold:

• Short-term capital gains: If held for less than 3 years, added to your income and taxed as per your slab rate
• Long-term capital gains: If held for more than 3 years, taxed at 20% with indexation benefits
• Inherited gold: The holding period includes the previous owner's holding period

Always consult a tax advisor for your specific situation.