Bridal Jewellery: A Good Investment?

Your big day is round the corner and what bride is complete without her bling! Besides, there can't be a better time than now to invest in that priceless yellow metal, right? But before you go knocking on every jewellery designer's door in town or scanning through millions of patterns to find that elusive one, we thought of giving you a head's up.

Ajay Mitra, Managing Director, India and Middle East, World Gold Council gives you a few tips to help you look like a diva and get a little extra from your investment too.

Pick the right pattern
The more intricate the pattern, the more your making cost. Add to that the semi-precious stones, gems and crystals used to create the exquisite jadau or kundan work and you'll find yourself coughing up quite a fortune. Now for the shocker: "When you sell your jewellery, you will lose the value of the making charges, precious stones and tax," says Mitra. So pick a pattern that is simple yet befits a bride, if you plan to sell at some point. For those of you who want to buy pieces to pass down to the next generations, go head and pick the most elaborate ;)

Ensure quality
This is probably the most important aspect of buying jewellery, regardless of the occasion. "Buy gold from a Bureau of Indian Standards (BIS) certified jeweller and you won't go wrong," Mitra advises. The jewellery will come with a Hallmark that assures you of quality. The Hallmark includes the BIS mark, the Assaying and Hallmarking Centre's mark, the jeweller's mark, the caratage of the gold and the year of marking in code form.

Don't go overboard
While gold jewellery is a good investment, it is not advisable to purchase too many bridal sets. This is because overspending on jewellery is not as good as investing in gold bars, coins etc. The bars and coins are generally 24 carat (which is the purest form), while bridal jewellery is made from 22 carat. As a result, when you sell your jewellery, your return is less. Buy only the required sets of jewellery and if you have money to spare, invest it in bullion.

Ajay Mitra, Managing Director, India and Middle East, World Gold Council says gold is a great investment because:

1. It is the only investment that has consistently given returns (23 per cent year on year). It ranks over real estate or the equity market.
2. It is a pseudo currency that retains its value and helps balance other investments too.
3. It protects against inflation too.

Tip: With a five year horizon, you can expect great returns. In some cases, the price has even doubled!

How to be a savvy gold investor:
Forget gold bars and coins. "Gold ETFs (Exchange Traded Funds) are a big trend these days," says Mitra. These are open-ended mutual fund schemes that invest in standard gold bullion (99.5% purity). So why invest in them?

1. You don't have to worry about storing physical gold because this is paper gold.
2. There's no need to wait to accumulate enough funds to buy a certain amount of gold. With ETFs, you can always buy a limited amount of units.
3. Rather than looking for the best deal with your local jewellers, you can sell at the current market rate any time. All it takes is a call to your broker!  

If you've chosen to invest in gold, do it systematically. Put aside money every month to invest in gold so that you are never at a loss.