Buying a small gold Lakshmi coin for Dhanteras: what to check first

For many families, Dhanteras is not complete without a little gold. And every year the same questions come up at the dinner table. Is buying gold online safe? Is a coin better than jewellery? How do you know you are not overpaying?

This MMTC-PAMP Lakshmi pendant is a good example to work through, because it is one of the most common choices.

What this piece is

The listing describes a 2 gram piece of 24K gold at 999.9 purity, with an image of Goddess Lakshmi, sold as a "gold bar and coin" pendant and LBMA certified.

In plain terms:

• 24K and 999.9 mean it is about as pure as gold gets. There is almost nothing else mixed in.
• MMTC-PAMP is a well-known gold refiner in India.
• LBMA is the London Bullion Market Association, which sets standards for gold refiners. Its accreditation is a sign of a serious refiner, not a sign of a good price.

Coin, pendant or jewellery?

A coin is gold you keep. Jewellery is gold you wear. They are priced differently for a reason.

Pure 24K gold is soft. That is why most everyday jewellery is 22K or lower, with other metals added for strength. A 24K pendant like this is best treated as a keepsake or a small store of value that you can wear on special days.

If you want to wear it, you will need a chain or a loop. Check the listing carefully to see what is included.

How to tell if the price is fair

Gold prices change every day. Before you buy:

1. Look up the day's gold rate for 24K gold from a reliable source.
2. Multiply by 2 for a 2 gram piece. That is the raw gold value.
3. Compare it with the listing price. The difference covers refining, minting, packaging, GST and the seller's margin.
4. Check a local jeweller for a similar 2 gram coin. Sometimes online is better, sometimes not.

A small premium over the gold value is normal for a branded, certified coin. A very large one is a reason to wait or look elsewhere.

The festival rush

Prices and demand both climb in the days before Dhanteras. If you can, buy a week or two early. You can still give it on the day.

Keeping it and selling it later

• Keep the sealed pack and any certificate. Resale and buyback are easier with intact packaging.
• Ask about buyback before you buy if you are thinking of this as an investment. Jewellers often deduct a percentage when buying back.
• Store it safely, away from moisture, and keep a photo of the packaging and invoice.

Is buying gold online safe?

With a well-known refiner and a reputed seller on the listing, the risk is low, but do the basic checks. Look at who the seller is on the listing, check the packaging when it arrives, and record an unboxing video if you are cautious. If anything looks wrong, raise it with Amazon straight away.

Our take

This is a sensible, popular way to buy a small amount of gold for the festival, from a name people trust. Just do the arithmetic before you pay. Five minutes with the day's gold rate tells you whether the price is reasonable.

Looking for something to give rather than keep? Our note on the rose engraved version covers the same kind of coin with a different design.