India is a huge fan of the precious yellow metal. Our fascination with gold is a well-known truth that doesn't need to be debated. And when we mention we enjoy buying gold, we're usually referring to gold jewellery. Gold is not only an investment but also a valuable luxury item for the ordinary Indian gold buyer. And don't we love to flaunt it if we get the chance? A woman's attire and wardrobe in India are never complete without any kind of gold jewellery.
On average, Indians are among the world's biggest gold jewellery buyers, both in India and abroad. The fact that there are so many jewellery shops all over India attests to this. We think we have perfected the art of purchasing gold jewellery as a nation of gold lovers. Is this, however, correct? Not at all, particularly considering the amount of impure gold jewellery circulating in the Indian gold market. Most consumers are surprised to learn that they were duped into purchasing impure gold jewellery at the expense of high-purity jewels. Continue reading to learn how to buy genuine gold jewellery to risk spending money on your savings.
As a gold-obsessed nation, the mere mention of the yellow metal piques our interest. This sometimes diverts attention away from the necessary due diligence when purchasing gold jewellery. It's all too easy to make mistakes while trying to buy gold for the right price. However, remembering the dos and don'ts of purchasing gold jewellery will help you get the most out of your purchase.
Keep in mind the Do’s
Check the purity: The first step is to be sure the gold used to make the jewellery you're interested in is pure. Finding the hallmarking on a piece of jewellery is the easiest way to search for gold purity. The official proportion of gold used is stamped on the hallmark. The Bureau of Indian Standards is the government body in charge of certifying and hallmarking gold jewellery in India (BIS). So, if you buy gold, make sure it's BIS-certified.
Understand the Fundamentals: How do you read a BIS hallmark now that you know you ought to look for one? Any piece of jewellery with a hallmark has a unique number etched on it, and is normally accompanied by the BIS stamp. The year of hallmarking is also used, as well as a symbol that identifies the jeweller. Find the letter "K" to figure out what the caratage is. This stands for karat, or purity percentage. When you buy 22kt gold rings, for example, you're getting 91.6 percent pure gold. The number 916 is often etched on jewellery with this caratage. Stone-studded ornaments, as well as white gold and rose gold ornaments, are typically made of 18kt gold, which is composed of 75% pure gold.
Cross-check the price: Cross-checking the price is just as critical as checking the hallmarking. Gold's price is determined by its purity. The price of the precious yellow metal fluctuates on a daily basis, based on market conditions. The regular bullion prices are displayed in jewelery shops across India for their customers. Discount the purity of gold from the price of the bullion and get an understanding of how to measure the price of gold.
Negotiate the Making Charges: Negotiating the making charges is an important step to take when purchasing gold jewellery. Jewellers pass on the labour cost of making jewellery to their customers. The making fee depends on the current gold price, which is usually a percentage. You have the right to haggle for the highest price on the jewellery you want.
Red flags: Remember the don'ts
Now that you've learned the dos, remember the don'ts to get the most bang for your buck. Here are a few topics to think about:
Plain gold vs. stone studded jewellery:
The first is to stop purchasing stone-studded jewellery as an investment, such as diamond earrings, ruby bangles, and emerald rings. The issue with stone-studded jewellery is that determining the authenticity of the stones is challenging. Check the net weight of gold and pay accordingly if you plan on just buying studded jewellery. Studded jewellery often has higher production costs due to the labour consuming nature of the complex designs and patterns.
Cheap doesn’t always mean the best:
In India, there are over 13,700 BIS-certified showrooms. There are also 435 BIS-approved hallmarking and assaying facilities. There are, however, numerous parts of the world where there are no hallmarking centres. Another source of concern, especially in rural India, is the reputation and consistency of some of the hallmarking centres. This takes us to a similar point: if a piece of jewellery is inexpensive but not hallmarked, don't buy it from a shop.
As a result, it's important that you only purchase ornaments from a reputable, BIS-hallmarked jeweller. The BIS website has a comprehensive list of hallmarked jewellers in the country to make your life easier. You can also contact BIS if you are not satisfied and still have concerns regarding a future purchase.
Avoid reselling: We Indians have a tradition of swapping old ornaments for new ones. It's best not to market your gold jewellery to someone other than the shop where you purchased it. Most jewellers have a buy-back programme that guarantees you get 100% of the gold's net worth. The making expenses, on the other hand, would almost always have to be deducted from the resale value.
Don’t buy jewellery without bills:
Purchasing jewellery is a difficult process. You must pay taxes, and if your transaction exceeds INR 50000, you will be required to exchange your PAN details. As a result, many customers purchase jewellery without receiving a shop charge. This can get you into trouble, particularly if you trade or resell the jewellery. Still, always, always, always, always, always, always, always, always, always, always, always, always, always, always, always, and always.
With a little care and a lot of planning, indulge the love of gold. Keeping these gold jewellery buying dos and don'ts in mind will guarantee that you get the best out of your purchase now and in the future.