Manipal Fintech Blog

Category: Buy Gold

  • 22K vs 24K Gold: Which is Best For Gold Investment?

    22K vs 24K Gold: Which is Best For Gold Investment?

    Gold has always been a trusted investment choice, providing security in uncertain times. Whether you’re a seasoned investor or just starting, investing in gold offers stability that few other assets can match. There are various ways to invest in gold, including Gold ETFs (Exchange-Traded Funds), Sovereign Gold Bonds (SGB), and physical gold like jewelry and coins. However, different gold carats have different values, so it is better to know and understand the differences between them carefully. In this blog, we will learn about gold purity and the difference between 22k vs 24k gold. 

    To help you decide between these options, explore our guide on SGB vs ETF to find out which is better for you. However, one crucial factor often overlooked is gold purity. The purity of gold not only influences its value but also its potential as an investment in gold.

    Understanding Gold Purity

    When discussing gold purity, the term “carat” is frequently mentioned. But what exactly does it mean? A carat is a unit that measures the purity of gold. Pure gold is 24k gold, meaning it contains no other metals. In contrast, 22k gold is 91.6% pure or 916 gold, with the remaining 8.4% composed of metals like copper or silver. The higher the carat is, the purer—and more valuable—the gold. 

    Important Factors To Compare Between 22k & 24K Gold

    Comparison of 22k vs 24k 22 Carat Gold 24 Carat Gold
    Purity 91.6% 100%
    Durability Less fragile Fragile
    Common Uses Jewelry Bullion, Coins
    Market Value High Highest
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    Key Features and Benefits of 22K Gold

    Uses and Applications

    • 22-carat gold is famous for making jewelry due to its durability and attractive yellow color.
    • Adding other metals makes it more resistant to wear and tear, making it suitable for everyday wear.

    Value and Future Potential

    • Although slightly less pure than 24-carat gold, 22-carat gold holds significant value, especially in markets where gold is primarily purchased for ornamental purposes.
    • The future potential remains strong, particularly in regions with a high cultural affinity for gold jewelry.

    Market Demand

    • 22-carat gold is in high demand, especially in countries like India, where it plays a vital role in cultural and religious ceremonies.
    • This consistent demand helps maintain its market value, making it a stable gold investment option.

    Key Features and Benefits of 24K Gold

    Uses and Applications

    • 24-carat gold, the purest form, is often used in bullion, coins, and high-value investments.
    • Its softness makes it less suitable for everyday jewelry but perfect for items meant for long-term investment in gold. To understand how the purity of gold has been defined over time, you can explore The Evolution of 24 Carat Gold Measurement System.

    Value and Benefits

    • The primary benefit of 24-carat gold lies in its purity. As the purest form of gold, it commands the highest market prices.
    • Investors often choose 24-carat gold for its intrinsic value and potential for appreciation over time.

    Market Demand

    • While 24-carat gold is less common in the jewelry market, it is highly sought after by investors and collectors.
    • The demand for pure gold remains strong, especially in economic uncertainty, where it is a safe-haven asset.

    Investment Considerations: 22k vs 24k Gold

    Gold is a great option for investors, when the rates go down they buy. However, it is crucial to know the right asset to buy. When deciding between 22-carat and 24-carat gold, there are several factors to consider:

    • Purity and Value: 24-carat gold is purer and, therefore, more valuable, but 22-carat gold is more durable and often preferred for jewelry.
    • Wear and Tear Resistance: 22-carat gold is more resistant to scratches and damage, making it better suited for items worn regularly.
    • Ease of Buying and Selling: Both types of gold are widely available, but 22-carat gold may be easier to sell in markets where gold jewelry is in high demand.

    Gold Investment Tips: Maximizing Your Returns

    When investing in gold, consider these gold investment tips to maximize your returns:

    • Diversify Your Portfolio: Don’t put all your money into one type of gold investment. Consider a mix of physical gold, Gold ETFs, and Sovereign Gold Bonds. For a comprehensive guide on how you can further diversify your portfolio, including using gold loans as a strategic tool, check out our blog Investment Tips: Build A Diversified Portfolio With Gold Loan.
    • Monitor Market Trends: Monitor gold prices and market trends to make informed decisions.
    • Assess Your Financial Goals: Align your gold investment with your long-term financial goals.
    • Consider Liquidity Needs: Choose the form of gold that suits your liquidity needs. Physical gold is easier to liquidate in emergencies.

    This section offers actionable advice to help you navigate the gold market effectively.

    Pros and Cons of Investing in 22-Carat and 24-Carat Gold

    1. 22 Carat Gold:
      • Pros: Durable, widely used in jewelry, strong market demand.
      • Cons: Slightly less pure, lower resale value than 24-carat gold.
    2. 24 Carat Gold:
      • Pros: Highest purity, maximum value, ideal for long-term gold investment.
      • Cons: Soft and prone to damage, less suitable for everyday wear.

    Unlocking the Power of Your Gold

    Gold loans offer a practical way to unlock the value of your gold without selling it. When you opt for a gold loan, you pledge your gold jewelry or coins as collateral to secure a loan. This allows you to easily access funds without requiring extensive credit checks or paperwork. For those weighing their options, check out our detailed guide on Gold Loan vs Selling Your Gold: Which Is The Better Option?

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    Why Gold Loans are a Better Way to Get Funds

    • Lower Interest Rates: Gold loans typically have lower interest rates than personal loans.
    • Flexible Repayment Options: Borrowers can choose from various repayment plans, making it easier to manage the loan.
    • Quick Processing: Gold loans are processed faster than other types of loans.
    • Continued Ownership: Unlike selling your gold, a gold loan allows you to retain ownership, giving you the option to repay the loan and reclaim your gold.

    Why Choose Manipal Fintech for Your Gold Loan?

    Some key features of Manipal gold loans include:

    1. High Loan Value: Manipal Fintech offers a high loan-to-value (LTV) ratio, meaning you can get high gold loan rates and a substantial amount of money against the value of your gold.
    2. Flexible Repayment Options: Borrowers can choose from different gold loan plans, making it easier to manage the loan at their convenience.
    3. Low-Interest Rates: Manipal Fintech offers competitive interest rates for gold loans is a significant advantage, helping reduce the overall cost of borrowing.
    4. Quick Processing: The loan process is streamlined, ensuring funds are quickly disbursed once the gold is appraised.
    5. Doorstep Services: We offer hassle-free gold loan at home services, so you don’t have to walk around the market with your valuable gold assets.
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    Conclusion

    Choosing between 22k or 24k gold depends on your needs and investment goals. Both offer unique advantages—from the durability of 22-carat gold to the purity of 24-carat gold. If you’re looking to unlock the value of your gold without selling it, a gold loan from Manipal Fintech is an excellent option. With Manipal Fintech, you can secure the funds you need quickly and efficiently while keeping your gold safe and sound.

    If you own gold assets and are considering a loan, choosing doorstep services can provide you with a seamless and efficient borrowing experience.

    Apply for a gold loan 24/7 on www.manipalfintech.com, or call at 18003098440

  • Understanding the 916 Gold Hallmark and What it Means for Gold Jewelry

    Understanding the 916 Gold Hallmark and What it Means for Gold Jewelry

    In the realm of gold, the 916 gold hallmark occupies a significant position representing much more than a mere stamp. It exhibits a specific purity level thereby shaping the quality and value of the gold item. For those who do not know, 916 hallmark gold is commonly known as 22-carat gold. India is a huge gold market be it coins, jewelry, or gold bars because of cultural and social values. 

    There were several cases of fake gold being smuggled into the market by unscrupulous elements. To prevent such activities and ensure customers’ faith in the system, the Indian government introduced a hallmarking system on all gold sold in or after the year 2000.  Read along to learn more about what 916 gold means and the different aspects associated with it. 

    What is 916 Gold?

    First, let’s have a detailed discussion on what 916 gold is and what its significance is. The digit 916 refers to 91.6 grams of pure gold per 100 grams of alloy. The remaining 8.4 grams are composed of other metals like brass or copper. This mixture gives a vibrant and lustrous appeal and is ideal for gold jewelry as pure gold or 24-carat gold is too fragile for intricate designs. The 916 hallmark establishes gold purity and customers have confidence that they are getting proper value for their money. 

    The hallmarking system is governed by BIS (Bureau of Indian Standards). It is the national standards organization of India deriving powers from the BIS Act of 2000 and it is responsible for certifying gold and silver articles across the country. After evaluating and testing the gold jewelry, BIS allows some marks to certify the authenticity of the gold. BIS hallmarking is a solid proof that metals are pure and the respective jewelry has been made as per national and international purity norms.

    Why & How 916 Gold is Made?

    The 916 gold hallmark system came into force in 2000 and from 15th January 2020, the government made it mandatory for all jewelers to sell only hallmarked gold. As already discussed, 916 gold means 91.6% pure gold. This system guarantees the quality and purity of gold and makes consumers confident about the authenticity of the gold they are purchasing. 

    Gold purity is measured in terms of carat. Pure gold is called 24-carat gold. However, this gold is too soft and fragile and is not suitable for making jewelry. Hence, manufacturers mix some brass, copper, or silver with pure gold and this gold alloy is hard, durable, and suitable for making jewelry. 

    Now, let’s take a look at why pure gold has so much value as compared to other metals: 

    • Gold is a symbol of status, power, and prestige. 
    • Gold is rare and is difficult to extract as compared to other metals. 
    • Gold has been used as a medium of exchange for many centuries. 
    • Apart from investment purposes, gold is also used in heavy industries like defense, aerospace, electronics, and automobile industries because of its non-corrosiveness and malleability. 
    • Gold is vibrant and visually appealing. 

    If you own gold assets and are considering a loan, choosing doorstep services can provide you with a seamless and efficient borrowing experience.

    Apply for a gold loan 24/7 on www.manipalfintech.com, or call at 18003098440

    Importance of Pure & 916 Gold

    The major advantages why you should always go for pure or 916 gold are given below: 

    • Purity Granted: 916 gold hallmarking offers a high level of purity with assurance of the Indian government’s certificate.
    • Durable: Another advantage of buying 916 gold is its durability and long-lasting nature. It can withstand daily wear and tear and will also not lose its shape or integrity. 
    • Perfect for Intricate Designs: The 916 gold retains the malleability and ductility of pure gold allowing for intricate and detailed jewellery designs.    
    • Legal Tender: 916 gold holds intrinsic value and is accepted globally as a form of currency, making it a reliable investment.
    • Valuable: 916 gold maintains a high market value due to its purity. It is recognized worldwide, ensuring that your investment remains valuable over time and can provide significant returns.
    • Internationally used: 916 gold is widely accepted and used across the globe. Whether you are in Asia, Europe, or the Americas, you can easily trade, sell, or purchase 916 gold, making it a versatile and convenient asset.

    Utilize Gold in Times of Need

    Gold is not only an investment instrument but can also be used to obtain liquid money by mortgaging it. You can utilize your gold value by getting an instant loan against gold jewelry. Another benefit of buying 916 hallmarked gold is that you get high per-gram rates for your gold loan.

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    A gold loan is always superior to traditional loans because of the following reasons: 

    • No Credit Score: A gold loan does not require any credit score or income documents as the yellow metal itself serves as collateral. 
    • No End-Use Restrictions: You can use the proceeds of the gold loan as you like as there are no end-use restrictions unlike business loans, home loans, or car loans. 
    • Lower Interest: A loan against gold comes at a lower interest rate as it is a secured form of borrowing. 
    • Quick Approval: The approval process for gold loans is easy, quick, and convenient leading to immediate fund transfer.  

    Want to go for a gold loan to meet your immediate financial needs? Manipalfintech – India’s leading gold loan aggregator platform is the go-to solution for you. Here are some reasons why you should trust Manipal Fintech to get a gold loan: 

    • Multiple Banks: Manipal Fintech is associated with top banks for gold loans like ICICI, HDFC, and Axis Bank, etc. You can easily compare and get the best gold loan from a best bank.
    • Attractive Interest Rate: Manipal Fintech offers competitive and low interest rates on gold loans, which means your overall loan repayment amount will be quite low and affordable. 
    • Diverse Repayment Scenarios: Manipal Fintech has different gold loan plans according to your need, like SahiMax, SahiDelight, and SahiFexi and you can choose any one of them at your convenience. 
    • Doorstep Service: Taking advantage of its digital prowess, Manipal Fintech has started a doorstep gold loan service where executives will visit your home to complete the formalities and transfer the loan amount. Additionally, you can also visit the nearby Manipal Fintech branch for a gold loan. 
    • Minimal Documentation: Farewell to extensive paperwork, Manipal Fintech requires minimal documentation and zero paperwork. 

    Conclusion 

    916 Gold Hallmark has been a revolutionary step in cleansing fake gold from the market and building trust among customers regarding the authenticity of their purchases. It is important that whenever you are looking to buy any gold jewelry, always check for the 916 BIS hallmark, and in case of any wrongdoings, report the matter to BIS. 

    The 916 gold jewelry can also be used to solve your financial crisis by pledging it and borrowing a loan. Manipal Gold Loan with its range of benefits and hassle-free user interface is the prime contender for fulfilling your gold loan requirements.

    Looking for an instant loan? Avail a gold loan with Manipal Gold Loan and get Instant approval with low interest rates.

    Apply for a gold loan 24/7 on www.manipalfintech.com, or call at 18003098440

  • Gold Investment: SGB VS ETF: Which is Better for You?

    Gold Investment: SGB VS ETF: Which is Better for You?

    Investment is the most effective way of putting your money to work and accumulating wealth. Despite the emergence of new trends and innovations in investments, gold investment still holds an irreplaceable position. The value generated from investing can be utilized to fulfill your financial objectives. Smart investing will increase the real value of your money (increase at a higher rate than current inflation). 

    Investing in gold is one of the easiest and most efficient methods of investment. It acts as a solid hedge against inflation and is highly liquid i.e., can be easily redeemed and you can instantly receive cash. Moreover, unlike stock markets and bonds, investing in gold does not require any specialized knowledge. Gold investment allows portfolio diversification and acts as a balancer against market volatility. 

    There are two ways of investing in gold – SGB (Sovereign Gold Bond) and Gold ETF (Exchange Traded Funds ). One can purchase SGBs from secondary markets where RBI issues them in periodic tranches. On the other hand, Gold ETFs are passive investment instruments that track the domestic price of gold.

    Every individual has different investment objectives and visions e.g. some are looking for long-term investment whereas some are interested in a medium-short term. Both ETFs and SGBs serve different objectives, so investors should compare their objectives with these instruments before making any decision. This blog aims to share tips to find the best investment option between SGBs & ETFs. We will further compare both, their pros and cons.

    What Are Sovereign Gold Bonds?

    SGBs (Sovereign Gold Bonds) are government securities dominated by the RBI (Reserve Bank of India) which issues these bonds on the central government’s behalf. SGBs have a specific maturity time, before that one can’t sell his/her acquired bonds. You can buy SGBs for investment purposes, it’s a perfect alternative to physical gold. In physical gold, we have storage and security issues, and paying making charges, while SGBs are free for these headaches. 

    Additionally, The holder does not get any interest on physical gold but in the case of SGBs, the holder will receive regular interest payments. 

    Some benefits of investing money in SGB are as follows: 

    • Low Risk: These bonds are issued by the RBI on behalf of the government in line with Government Security Act 2006. These bonds come with sovereign backing and have zero chances of default making your investment completely secure. As these bonds are aligned with the domestic price of gold, the only risk is fluctuation in market prices. 
    • Convenience: As compared to physical gold, SGBs are quite convenient and safe. Holders of these bonds are provided with an investment certificate which serves as proof of their investment. Unlike physical gold in which investors have to fret about storage and safety issues, there is no such case in SGBs. 
    • Hedge Against Inflation: As gold prices outpace the inflation rate, SGB can serve as a shock absorber against inflationary pressures allowing a real increase in the value of the investment portfolio.

    The RBI has set a window within which it issues these bonds and this opens for 5-7 days every 3 months. This is a good investment option for those who are low-risk investors and prefer to invest in gold. 

    What Are Gold ETFs?

    As already discussed above, gold-based ETFs are passive investment options offering individuals an alternative to investing in physical gold. This index tracks the domestic price of gold and can be traded on stock exchanges i.e., NSE and BSE. Gold ETFs combine dual benefits – flexibility of stock markets and simplicity of gold investments. 

    Purchasing Gold ETFs means investors are buying electronic gold and when an investor opts to sell these ETFs, they will not receive bullion but cash equivalent according to the prevailing price of gold. Here are some reasons why Gold ETFs are beneficial: 

    • Flexibility 

    One of the major advantages of investing in Gold ETFs is its flexibility. One can purchase these ETFs in Demat form and trade them on stock exchanges within market hours. As ETFs are stored in Demat accounts, it gives investors flexibility of entry and exit. 

    • Small Denomination 

    Usually, gold investments are not meant for small investors because of huge investment outlay. However, ETFs do away with this problem as there is no minimum investment criteria. You can invest even Rs. 100 and equivalent ETFs as per prevailing gold prices will be transferred to your account. 

    • Tax Efficiency 

    Returns earned from Gold ETFs are subject to only LTCG or long-term capital gains tax. There is no other tax burden like wealth tax, DDT, etc. If an investor is in the higher tax bracket, gold ETFs can be beneficial as these investments will be more tax-efficient than investments in stocks. 

    Comparing SGBs and ETFs 

    Now that you are well versed in the meaning of both investment options, let’s make a small comparison of of these two investment options as it will help you in making wise investment decisions: 

    • Liquidity 

    SGB: In terms of liquidity, SGBs stand lower than ETFs. SGB has a fixed tenure of 8 years with an exit option only at the end of the 5th year. 

    ETFs: These are more liquid as ETFs can be sold and bought on stock exchanges within the market hours. You have direct control over entry and exit in the case of ETFs. 

    • Costs 

    SGB: These bonds do not come with any kind of management fees or brokerage charges. These bonds may be issued at a discount or premium depending upon the prevailing market conditions. 

    ETFs: As these are managed by AMCs, you have to pay both the management costs and brokerage charges.. All these create additional financial burdens burden on investors. 

    • Return

    SGB: As these are bonds, apart from the capital appreciation in the value of gold, investors are also eligible to receive fixed interest payments payable half-yearly. 

    Gold ETFs: There is no provision for fixed interest returns in ETFs. The only return that investors will receive is from appreciation in the price of gold. 

    • Ease of Investment 

    SGB: SGBs have a complicated and rigorous subscription method. Investors need to fill out an application form and submit the same to banks or designated post offices. The redemption process is also through the same channel or by selling them on stock exchanges. 

    Gold ETFs: These act just like any other stock investment and can be bought and sold electronically via a Demat account without the need to visit banks or post offices. 

    ETFs vs SGBs Which Option is Better for You 

    Both SGB and Gold ETFs have their strengths and limitations. Now it is up to your investment objective, vision, and risk appetite which will help you in making a wise choice. If you are looking for a long-term investment and want fixed interest income then SGBs can be a preferred option. However, if you put greater emphasis on liquidity, costs, and a shorter investment timeline, gold ETFs may help in fulfilling your investment objectives. 

    Basis SGB ETF
    Returns SGBs are linked to the price of gold but there is a fixed interest component that you receive annually. ETFs are also linked to the price of gold. However, unlike SGBs there is no interest component in gold ETFs.
    Flexibility The tenure of SGBs is 8 years but there is a lock-in period of 5 years meaning you cannot redeem it before the end of 5 years. ETFs are far more flexible compared to SGBs. There is no lock-in period and one can enter and exit as per their requirements.
    Taxation If SGBs are held till maturity, all capital gains will be tax-free. However, interest is fully taxable In the case of ETFs, there is no exemption from capital gains tax. You need to pay short-term or long-term capital gains tax based on the duration of holding.
    Cost There are no recurring costs in SGBs. In the case of ETFs, you need to pay annual charges like brokerage fees, commission, expense ratio, etc. Can You Utilize SGB For Emergencies?

    Sovereign gold bonds suffer from a lack of liquidity as they come in with a lock-in period of 5 years. They can be redeemed or traded on stock exchanges but only after the completion of 5 years from the date of issue. Therefore, SGBs may not help you out during financial emergencies. On the other hand, ETFs can be sold at any time during stock market time. This normally takes 2-3 days to reflect and withdraw the amount in your bank account. Additionally, ETFs can not be sold on weekends, or on the holidays when the exchange market is closed.   

    On the other hand, gold loans emerge as a viable alternative to tide over your immediate financial crisis. It offers a way of using physical gold to obtain liquid cash by mortgaging it with the lender. Gold loans can be availed in any emergency or to fulfill any financial need. Most gold loan providers offer quick and hassle-free loans within 30* minutes, even you can apply and get a gold loan at your doorstep.

    Apply now to get an instant doorstep gold loan

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    Tired of searching for a reliable and secure gold aggregator? Your search ends with Manipal Fintech. We are India’s leading gold loan aggregator that will rescue you from all financial troubles by offering gold loans at competitive interest rates and faster processing time. Here are several reasons why you should choose Manipal Fintech for gold loans: 

    • Low-Interest Rates: Manipal Gold Loan offers gold loans at a lower interest rate, which makes it a more cost-effective option than other traditional loans.
    • Flexible Repayment Options: We offer flexible repayment options for our borrowers so that they do not have to face any unnecessary financial burden.
    • Multiple banks: You can avail of gold loans from several leading multinational banks like HDFC, ICICI, Axis Bank, etc to meet your financial requirements. 
    • No Credit Score: There is no need for any credit score to avail of loans from Manipal Fintech as gold serves as the required collateral. 
    • Zero Paper Work Manipal Fintech simplifies the gold loan process with zero paperwork. Simply provide PAN, address proof, and bank details.

    You can also avail a gold loan at home with Manipal Fintech from the comfort of your home. After raising a request our executive will visit your house to complete formalities and disburse the loan. Additionally, you can also visit the nearest Manipal Fintech branch with prior for speedy loan disbursal. 

    Conclusion 

    ETFs and SGBs are great investment avenues but they may not be of great help in financial emergencies. Gold loans are the answer to your problem in such situations. Manipal Gold Loan with its hassle-free and streamlined offerings is the ideal choice for gold borrowings. Our dedicated and hands-on assistance is aimed at making your loan journey convenient, easy, and 100% secure.

    If you own gold assets and are considering a loan, choosing doorstep services can provide you with a seamless and efficient borrowing experience.

    Apply for a gold loan 24/7 on www.manipalfintech.com, or call at 18003098440

  • The Evolution of 24 Carat Gold Measurement System

    The Evolution of 24 Carat Gold Measurement System

    Gold derives its name from the Old English word “Gelo”, the word for yellow.

    Its chemical symbol AU is derived from “aurora” which means “shining dawn”.

    The oldest golden artifacts recovered by archaeologist’s date back to 4600 BC.

    Earlier gold was first discovered in riverbeds as nuggets and as alluvial gold, which is gold dust, that is found in soil sediments washed down from the mountains by rivers.

    History of Gold, Uses & Mining 

    The early use of gold was as an adornment. It was used only by the elite and rarely did a common man possess it. It slowly began to be used to project wealth and grandeur by the early Egyptian pharaohs. The earliest of whom was Hatshepsut, the daughter of Thutmose 1, the first pharaoh who was buried, about 1482 BC.

    Hatshepsut was an impressive woman by any standards. She wanted to build two gold pillars each 100 feet tall, as a monument to Amon Re, chief god of Thebes. Her chancellor prevailed upon her to moderate her dreams. So as a compromise, the granite pillars built were covered with gold.

    The Egyptians started to mine the gold in Nubia; nub is the Egyptian word for gold. As the mines went deeper, slavery was a must, slaves were used to work the mines. The Romans were the first to use “hydraulicking” a process by which powerful jets of water were used to expose the gold-bearing parts in the mountains. It may be of interest to note that even miners in the California gold rush in the nineteenth century used hydraulicking.

    While gold had value, it still had to establish itself as a “Value Store” and become a medium for monetary exchange. Egyptians were casting gold bars as early as 4000 BC. These huge bars (estimated at 30 pounds each) did not lend themselves to convenient handling.

    Evolutions of Gold Carat Measurement 

    Gold has to be made and weighed in smaller quantities. Carat the word derived from the Greek word kerátion, carato  in Italian, and qirat in Arabic was originally a measure of weight, not purity.

    Carats are the fruit of the leguminous carob tree. Each pod of this weighs exactly one-fifth of a gram. Thus, one could establish a standard for weight using the fruits of nature!

    Grains of barley or wheat have a similar attribute. All grains in the middle of the ear weigh the same. In France where this was put to use, 480 grains as a Troy ounce, and 12 troy ounces is a pound.

    In India, the Tola is a unit of weight with historical roots in Asia that was used before decimal units were introduced. It is equivalent to approximately 12 gms (11.6638038 grams) and is commonly used today to measure gold, especially in North India. Several gold manufacturers produce gold bars in Tola measurements. Whereas in South India, the pound sovereign, also known as pawan savaran, pavan or paun, is a unit of mass commonly used in the Indian gold industry. Although it is technically equivalent to 7.98805 grams, it is usually rounded off to 8 grams. 

    Gold’s Ancient Journey

    In ancient times, grains of barley or wheat were used as a form of currency. Interestingly, all grains in the middle of an ear weighed the same, making them ideal for trading. As the concept of currency evolved, so did the need for standardization in weight and purity. In France, for example, 480 grains were designated as a Troy ounce, and 12 troy ounces made up a pound. Over time, measuring purity became a daily necessity, and standardization helped to ensure consistent measurement across the board.

    It may be of interest to note that the early kings solved their shortage of gold by mixing it with other base metals like copper, this was called “Debasing”.

    It was not just kings who tried debasing, when coins were first manufactured the edges were smooth. This led to a process of pilfering called “clipping”. People took a file and ran it around the edge of the coin to collect gold dust. The collected dust was then melted and sold off commercially. To prevent this the coins were manufactured with serrated edges so that any filing off could easily be detected.

    In Lydia, the place where coinage began, they found it necessary to have a practical method to ascertain the purity of gold. A local black stone was rubbed against various proportions of gold, silver, copper, and all three metals. They used 24 needles made of this stone rubbed against these proportions and compared it with those against lumps of gold received for commercial transactions. Thus began the 24-carat system for the measurement of gold purity.

    Historians believe that Indians developed the world’s first coins, with Vima Kadphises introducing the first standardized gold coins around 100 AD. The Kushans’ coinage system laid the foundation for coinage during the Gupta Empire. While these gold coins were crucial for trade, debasement occurred over time as rulers mixed gold with other metals. In summary, India’s history includes instances of debasing currency, both through devaluation and the alloying of gold coins

    Current Checklist For Gold Purity

    Today we use “Hallmarking” to mark the purity of gold on jewelry. In 1327, by law, the Worshipful Company of Goldsmiths in London, started marking jewelry to certify the purity of gold, the word ‘hallmark’ comes from here.

    In India, we follow the BIS (Bureau of Indian Standards) system of hallmarking gold jewelry began in April 2000. Purity of Gold either one of these 24K 999 for 24 Caret, 22K 916 Corresponding to 22 Carat, 18K 750 Corresponding to 18 Carat, and 14K 585 Corresponding to 14 Carat. The 6-digit alphanumeric HUID-  is HALLMARK UNIQUE IDENTIFICATION.

    So, with modern manufactured jewellery the purity of gold comes certified. It is always advised to carefully examine the gold purity hallmarks to avoid mistakes while purchasing a gold item.

    Importance of Gold Carat & Purity Hallmarks

    Understanding the significance of Gold Carat and Purity Hallmarks is crucial for anyone dealing with gold. These hallmarks ensure the authenticity and purity of gold, which is essential for buyers and sellers alike. In the gold market, they serve to prevent fraud and deception. 

    Furthermore, these hallmarks enable the determination of the value of gold, which is useful for individuals who want to sell or buy gold or want to take a gold loan. These hallmarks also ensure the safety and well-being of the customers by preventing harmful chemicals and alloys from being present in gold without purity hallmarks. By adhering to these hallmarks, the gold market can maintain a high level of quality and consistency, ensuring that customers receive high-quality gold products.

    If you own gold assets and are considering a loan, choosing doorstep services can provide you with a seamless and efficient borrowing experience.

    Apply for a gold loan 24/7 on www.manipalfintech.com, or call at 18003098440

  • Mistakes To Avoid When Buying Gold That Effects Gold Loan

    Mistakes To Avoid When Buying Gold That Effects Gold Loan

    Gold is regarded as an ‘eternal metal’ oftentimes, it has numerous benefits and plays a crucial role when it comes to financial planning. Due to its timeless value people always like to buy gold for investment also. The demand for gold lies because of its timeless value which makes it a secure and appreciating asset. Incorporating gold into financial portfolios brings diversification which acts as a stabilizing force and reduces overall risk exposure. Avoiding common mistakes while buying gold, it becomes evident is pivotal for a successful and financially safe journey.

    You can also use your valuable gold asset to get loans against it in need. But not every gold asset is usable to avail loans. According to the RBI, there are certain guidelines and rules for gold items to pledge. Only certified ornaments that meet purity standards can be pledged to avail of gold loans.

    The purity of gold directly influences the terms and conditions of gold loans, impacting the gold loan interest rates and per-gram rate. When it comes to using gold for loans, knowing its purity is very important, especially with the fluctuating nature of gold rates. When contemplating using gold as collateral for loans, paying attention to the gold carat rate is crucial. The per-gram rate of gold plays a significant role in determining the loan amount, making it pivotal to understand how this factor can impact your financial decisions.

    Understanding Gold Purity And Quality 

    There are some government and goldsmith standards that you should know about gold purity. Whether you are buying gold for investment or for wearing purposes, it is always important to consider purity standards. Gold purity is a critical factor influencing its value, especially when it comes to obtaining loans. It’s essential to comprehend the significance of purity levels, as they directly correlate with the gold loan rate per gram.

    Below Are The Factors That Help To Understand Gold Purity

    Gold Karat:

    Karat indicates the purity of gold in gold jewelry, the finest type of gold is 24 karats or 999 gold. A lower karat indicates a lower purity level. In contrast, 14-karat gold is 58.5% pure, while 18-karat gold is 75% pure. Most wearable gold ornaments are made of 22 Karats (916) gold.

    BIS Hallmarking: 

    BIS hallmarking is a quality assurance mark set by the government in India. Only govt agencies can mark the BIS hallmark after inspection. To ensure the purity and authenticity of gold jewelry, search for BIS hallmarks on it. The BIS hallmark is well-known in India and guarantees that the gold satisfies domestic requirements. For E.g. 916 indicates 22 Karat gold while 999 indicates 24 karat pure gold. From April 2023 Indian government has issued a 6-digit unique code for all certified gold ornaments. 

    Color and Appearance: 

    Pure gold is a vivid yellow with a noticeable sheen. However, when other metals are included, gold alloys with lesser purity levels could seem paler or have a different tint. There are different types of gold e.g. Rose gold which is in pink/rose color. The rose gold is made of 18K gold.

    Certification and Stamping: 

    Real gold jewelry is often certified and stamped with markings indicating the amount of purity and karat. Additionally, the purity and authenticity of the gold are guaranteed by certification from government institutions.

    Factors to check while buying a gold jewelry

    1. Purity and Certification: 

      As mentioned above, verify that gold jewelry has a purity hallmark, has been verified by a government agency such as the BIS, and examines its karat to ascertain the degree of purity.

    2. Weight: 

      While buying gold items, always carefully check the gold weight. Many ornaments come with gemstones added, make sure you are not paying for those gemstones. Consider gold and gemstone weight separately.

    3. Price:

      When you buy a gold item, check gold rates in your region. You can check government gold rates state-wise here. Also, check for jewelry-making charges to avoid extra pay.

    The Impact of Gold Quality on Loans Application

    Gold purity directly affects a gold loan application. A lender tests and identifies your precious gold items while processing your loan application. By outlining the mistakes you can easily get the maximum loan value against your gold assets.

    Neglecting Purity Checks

    Purchasing impure or alloyed gold poses significant risks, especially when it comes to obtaining a loan against gold. Failing to ensure the purity of gold can lead to adverse consequences, affecting loan eligibility, gold loan rate, and loan-to-value ratios. Lenders often assess the purity of gold to determine its gold carat rate, and acquiring gold without proper purity verification may result in a lower gold loan rate than expected.

    Impact on Loan Eligibility

    The purity of gold directly influences loan eligibility. As mentioned earlier, according to the RBI  only 18k to 24k gold items can be pledged to get a loan. Lenders prefer pure gold as collateral because of its higher market value and liquidity. If you have impure or alloyed mixed gold jewelry, the lender may reject your loan application.

    Loan-to-Value Ratios

    Loan-to-value (LTV) ratios indicate the percentage of gold loan rate per gram compared to the per gram rate of gold. Higher purity levels generally result in more favorable LTV ratios, providing borrowers with better loan terms. For example, if you are pledged 24K gold you will get a high per gram rate and LTV compared to 22k & 20K gold jewelry.

    Understanding Market Trends

    Staying informed involves actively tracking changes in gold rate per gram, market demand, and geopolitical factors. Regularly check financial news, follow reputable market analysts, and utilize online resources that provide real-time updates on gold loan rates per gram and trends.

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    Tips for Buying Gold Jewelry 

    When you buy gold jewelry in India, you must navigate through certain key points to ensure that your gold assets are valuable and reliable. Here are a few factors to check when you purchase any gold item.

    1. Buy Pure Gold Jewels Only 

      Gold’s value depends on its purity, impure and mixed metal gold can affect your asset value. So, always buy 24k to 18k gold, and avoid below 18k gold jewelry, impure, or alloyed gold. 

    2. Check Hallmarks

      Always check for BIS and manufacture hallmarks on gold items to ensure purity and authenticity.

    3. Avoid Peak Rates

      Buying gold during price peaks can significantly impact the overall gold rate per gram. Making purchases when gold prices are high includes potential financial setbacks.

    4. Make Opportune Moments Purchase

      Identify opportune moments when gold prices are comparatively lower. It potentially provides cost savings and enhances the overall value of the investment. 

    Why Manipal Fintech for Gold Loans?

    In the world of loans against gold, where precision and efficiency matter, it’s crucial to align with trusted partners. Manipal Fintech Gold Loans emerges as India’s most trusted loan service provider against gold assets. We offer a seamless experience without the burden of lengthy documentation processes. With our phygital and customer-first we have achieved quick application approval and instant loan disbursement with zero paperwork. 

    1. Less Documentation: Gold loans are simple to apply for and don’t need a lot of paperwork, they are a popular choice for funding among entrepreneurs. In contrast to conventional loans, a gold loan just needs a small amount of KYC papers, including a PAN card and an Aadhaar card.
    2. No Credit Score Required: Since gold loans are secure loans where your valuable gold works as collateral, you don’t require a minimum credit score to apply.
    3. Lower  Interest Rates: The interest rates on gold loans are often competitively lower than other types of loans. Which makes them acceptable, and one of their main benefits. Furthermore, gold loans frequently have no additional costs, which sets them apart from other loan kinds and may make them a more transparent choice for you.
    4. Instant Loan Disbursement: At Manipal Fintech we prefer user conveniences. Once your loan against gold is approved, your loan amount is deposited in your bank account within 30* mins.
    5. Easy Repayments: Paying a loan back is more headache. To improve our customer experience and make repayments easy we have customized and flexible repayment plans for your gold loans. 
    6. Multiple Banks: We have multiple banks including HDFC, Axis ICICI, etc associated with us to provide the best gold loans. You can select your favorite bank gold loan. 

    The end lines

    Gold the yellow metal is not only for wear or investment, but it also works as a financial tool in times of need. You can easily finance your gold when you need instant money without any hassle. If you already have taken a gold loan and are looking to refinance or transfer your loans, check offers with Manipal Fintech to avail more benefits.

    If you own gold assets and are considering a loan, choosing doorstep services can provide you with a seamless and efficient borrowing experience.

    Apply for a gold loan 24/7 on www.manipalfintech.com, or call at 18003098440