Q - Gold has traditionally been considered a safe option to invest in. In the current scenario, has its value in the investment portfolio appreciated or declined?

Gold has always held a special place in investment portfolios due to its historical reliability as a safe haven asset. In the current scenario, gold continues to be a valuable addition to investment portfolios. While it’s essential to acknowledge that the value of gold can fluctuate in response to various factors, it remains a trusted asset for diversification and risk management. As an investment, gold can offer stability and act as a hedge during reduced economic uncertainties. While market conditions may vary, the enduring appeal of gold as a sound investment choice endures. Q - What is the difference between 22K & 24K gold and which should you buy if you want to invest in gold?

24K gold and which should you buy if you want to invest in gold?

• The primary difference between 22K and 24K gold lies in their purity levels and composition.
 

24K gold, also represented as 999 fineness, is 999 parts pure gold out of 1,000 parts, with minimal traces of other metals. This means that when you buy 1,000 grams of 24K gold, you’ll get 999 grams of pure gold mixed with 1 gram of some other metal.

22K gold, on the other hand, is of 916 fineness, which means in 1,000 grams of 22K gold, 916 grams is pure gold, and the rest consists of other metals, such as copper. 22K gold and below are used for making jewellery because they are combined with other metals to improve hardness, malleability, and strength.

When investing in gold or silver, it is crucial to purchase the highest purity, which is typically associated with minted coins and bars. At MMTC-PAMP, our focus is on offering minted gold and silver products to consistently ensure the highest purity at 999.9+. This means that if you buy 1,000 grams of 24K gold from MMTC-PAMP, you’ll always receive more than 999.9 grams of gold.

Importantly, MMTC-PAMP is the only refinery that uses silver as the balance metal, giving our customers the purest products available.

Q - How does the purity level of 995 & 999 fineness differ from that of 999.9 fineness?
 

 995, 999 and 999.9 purity levels are an international nomenclature, which is used to define the purity of gold and silver per 1,000 grams. Ex - at a weight of 1,000 grams of gold, a purity of 995 means that you get 995 grams of gold with 5 grams of another metal like copper. 999 purity means 999 grams of gold with 1 gram of another metal, while 999.9 means you get only 0.1 gram of another metal while the rest is pure gold. The difference between 995, 999, and 999.9 fineness lies in the purity level of the gold and silver.

Hence, while 999 fineness gold is considered 99.9% pure, 995 fineness gold is at 99.5% purity. At MMTC PAMP, our minted (coins and bars) gold and silver products surpass the 999.9+ purity level, making them the purest and the most valuable products available.

It is further worth highlighting that MMTC-PAMP is the only refinery which not only provides gold of the highest purity of 999.9+, but also with the balance metal being pure silver, thereby giving our customers the purest products.

Q -  Is this the right time to add gold to the investment portfolio? Why?

  As a long-term wealth preservation asset, gold has historically delivered consistent results. Incorporating gold into an investment portfolio adds valuable diversification benefits, helping investors spread their risk and exposure during reduced economic uncertainties. Gold has consistently proven its worth as a safe and reliable investment over the years.

Q - What advantage does MMTC’s collaboration with PAMP SA offer investors and buyers of gold?

MMTC-PAMP combines the rich heritage and trust associated with MMTC, the global excellence, and the expertise of PAMP SA, a renowned Swiss bullion refinery.

MMTC-PAMP is the only London Bullion Market Association (LBMA) - -accredited Gold and Silver Good delivery refiner in India. Investors and buyers of gold and silver can be assured of the purest products with positive weight and purity tolerance. Our minted precious metal products are of 999.9+ purity. As a result, investors and buyers gain access to a vast range of gold and silver products crafted to the highest international standards, ensuring both purity and quality.

Q -  What are the key processes and quality assurances that MMTC-PAMP follows to ensure the purity and authenticity of its gold and silver products?
 

As India’s only LBMA-accredited Gold and Silver Good delivery refiner, we shoulder the responsibility to maintain the highest standards of compliance across our value chain. Our compliance with Responsible Gold Guidelines (RGG) and the seamless year-on-year audit and accreditation with LBMA highlight our unwavering commitment to responsible practices and superior value delivery. The outcome of this rigorous journey is products with 999.9+ purity, a testament to our dedication to quality and authenticity, assuring our customers of unmatched value.

At MMTC-PAMP, it begins with the sourcing of precious metals from responsible supply chains, ensuring ethical practices. We use state-of-the-art assaying techniques to verify the metal’s purity.

Once the quality is assured, we craft our minted products with the Finest Swiss Craftsmanship with designs and motifs inspired by our Indian cultural heritage.

Our minted products such as coins and bars are the purest in the market and come with positive weight and purity tolerance, meaning customers get more than the mentioned weight.

Q - What are the different methods of investing in gold, and which one would you recommend?

One can make gold investments in multiple forms. However, it’s advisable to choose a method that aligns with one’s investment goals and preferences from those stated below:

• Minted gold coins and bars
• Digital gold
• Sovereign gold bonds
• Gold ETFs
• Gold mutual funds

When considering a method for investing in gold, it’s important to weigh the options based on your investment goals and preferences. Minted gold coins and bars, as well as sovereign gold bonds, gold ETFs, and gold mutual funds, each have their advantages.
 

Minted coins and bars provide tangible ownership of gold and high purity levels and are most liquid (can be sold to an authorised dealer at the prevailing market price), making them a reliable choice for those who value physical assets. On the other hand, sovereign gold bonds, gold ETFs, and gold mutual funds offer ease of trading and liquidity however may come with a lock-in period or management charges, which may not be preferred by some consumers. The final choice depends on your financial objectives, risk tolerance, and investment strategy.

When buying physical gold , it is crucial to pay attention to purity. MMTC-PAMP ensures these products are of the highest purity (999.9+), making them a reliable and trusted investment choice. They are an excellent way to diversify one’s portfolio while enjoying the security and flexibility of physical gold.