Blog

Inflation & real rates
Gold tends to shine when real interest rates (nominal minus inflation) are low or negative. High real yields increase the opportunity cost of holding gold.

US dollar
Gold is priced globally in USD. A weaker dollar often supports higher gold prices, and vice versa.

Central banks & geopolitics
Official sector buying and geopolitical stress can boost demand as investors seek safe havens.

Investor flows
ETF inflows/outflows and futures positioning can amplify moves short-term.

Practical reading
Watch inflation trends, central-bank guidance on rates, and the dollar index. For long-term savers, regular accumulation smooths volatility.

Home storage

• Pros: Immediate access, no ongoing fees.

• Cons: Higher theft/fire risk—mitigate with a quality safe, concealment, alarms, and documentation for insurance.

Bank safe-deposit box

• Pros: Strong physical security.

• Cons: Limited access hours; contents usually not insured by the bank—arrange separate coverage.

Professional vaults

• Pros: 24/7 monitored facilities, audited holdings, optional insurance; some offer allocated storage.

• Cons: Annual fees.

Insurance basics
Document purchases, photograph items/serials, and keep records off-site. Understand coverage limits and exclusions (e.g., mysterious disappearance clauses).

Liquidity tip
Hold a mix of denominations for flexible resale (e.g., several 10g pieces instead of one 100g bar).

Common stamps

• Karat: 24K, 22K, 21K, 18K.

• Fineness: 999, 916, 875, 750 (parts per thousand).

• Assay/maker’s mark: Identifies the testing authority and manufacturer.

Why it matters
Hallmarks protect buyers: they indicate purity and traceability. A 22K stamp (or 916) should test close to 91.6% gold.

Testing methods

• Electronic testers give quick estimates.

• XRF analysis is precise but costlier.

• Acid tests are inexpensive but require skill.

Red flags
Missing or inconsistent stamps, unusual coloring, or prices far below market can signal problems. When in doubt, test.

Tip
Photograph hallmarks on purchase and keep certificates—this speeds resale and insurance claims.

Bullion bars & wafers

• Pros: Lowest premiums per gram, straightforward resale.

• Cons: Requires safe storage and sometimes verification fees.

Gold coins (e.g., Maple, Krugerrand)

• Pros: Recognizable, liquid, often easier to sell in small amounts.

• Cons: Slightly higher premiums than bars.

ETFs & ETCs

• Pros: High liquidity, easy to buy/sell in a brokerage account, no physical storage.

• Cons: Management fees; you don’t hold the metal yourself.

Jewelry

• Pros: Wearable, cultural value, gifts.

• Cons: High making charges; resale often recovers metal value only.

How to choose

• Hedge & long-term savings: Bars/coins with low premiums.

• Tactical trading: ETFs for speed and liquidity.

• Gifting/usage: Jewelry—accept the higher cost.

• Diversification rule: Many aim for 5–15% of a portfolio in gold, adjusted to risk and goals.

Practical tips
Buy from reputable dealers, verify hallmarks, understand premiums, and plan storage/insurance from day one.

Gold has two prices: the spot price you see on charts, and the final price you actually pay. The gap is where most confusion—and profit margins—live.

Spot price vs. retail

• Spot price is the live market price for pure gold (99.99% / 24K) per troy ounce or gram.

• Retail price = spot + premium (minting, logistics, dealer margin) + tax (if applicable) + making charge (for jewelry).

  Karats & purity

  • 24K = 99.9%, 22K ≈ 91.6%, 21K ≈ 87.5%, 18K ≈ 75%.

  • The higher the karat, the higher the gold content—and usually the price per gram.

  Making charges
  Jewelry adds craftsmanship costs. Two identical-weight pieces can have different prices if one is more complex. When reselling, most buyers value metal content first; elaborate designs rarely recoup their making charges.

  Buy–sell spread
  Dealers quote a buy price (what they pay you) and a sell price (what you pay them). The difference is the spread. Lower spreads favor investors; higher spreads are common in designer jewelry.

  Tips to buy smarter

  1. Compare per-gram prices at the same karat.

  2. Ask for a breakdown: spot, premium, making charge, tax.

  3. Keep invoices and hallmark details for resale.

  4. For investment, consider low-premium bullion over ornate pieces.

  Bottom line
  Know your karat, understand the spread, and always compare the all-in per-gram cost—not just the headline spot price.