Whether as an investment or as a status symbol, buying gold has always remained popular in India, with Indians currently accounting for the most gold consumed annually. Gold also has a deep-rooted significance in Indian history, a metal that is culturally significant with religious connotations attached to it. Gold jewellery is part of every household and is considered a family heirloom by most Indians; jewellery and ornaments of gold are passed on from one generation to another. Moreover, many families pass on jewellery from mother-in-law to bride as well, irrespective of change in value or design trends.
When one purchases gold jewellery, they are usually charged with making charges. Making charges are nothing but labor charges for crafting the gold into jewellery that you are buying. Making charges can vary from one jeweller to another. A smart way out of it would be to insist on fixed making charges. Also, try finding the origin of the particular piece of jewellery you are buying as jewellery made from machine has lower making charges than handmade jewellery.
Gold rates change daily according to the market forces. In India itself you can find that gold rates differ from city to city, as each city has its own jewellery association which declares gold rate every morning. Usually, there is no fixed pattern of invoicing gold jewellery but this is how most jewellers calculate the price of the jewellery:
Price of Jewellery = Price of Gold (22 KT or 18KT) * Weight in grams + making charges + GST at 3% on (price of jewellery + making charges)
The purity of gold is denoted in Karats. 24-Karat gold is 99.9 percent pure, while 22-Karat gold is 92 percent pure. Each karat of gold is equivalent to 4.2 per cent pure gold. This means that 14 and 18 karat gold contains only 58.33 percent and 75 percent pure gold, respectively. As 24 karat gold is too soft and is not suited for making jewellery, jewelers mostly use 22, 18 or 14 karat gold. Always check the gold’s purity before purchasing it.
Hallmarking certifies the purity of gold jewellery. Hallmarking is done by the Bureau of Indian Standards. BIS embosses the hallmark’s logo along with a fineness number, hallmarking centre’s mark, jeweler’s identification mark and year of marking denoted by a code letter.
The table below indicates the purity level along with corresponding Fineness Number: –
|Gold purity||Fineness Number|
Many a times, gold jewellery is embedded with stones. When buying such pieces, always keep an eye on how the price of jewellery is calculated. Jewellers have been known to weigh the entire piece and charge it for the price of gold. When you wish to exchange or sell the piece back, the jeweller would deduct the stone weight and impurity from the total value, leaving you at a loss.
So, when purchasing stone-studded jewellery, make sure that stone value is added separately to the bill and the price is calculated for value of the total gold in the jewellery piece sans the weight of the stone(s).
Keep these five points in mind, and you’ll be making a smart and well-informed decision while buying gold jewellery. As they say, awareness is the first step to doing it right.
We are India's No.1 - Most Trusted Financial Services Brand, according to the Brand Trusted Report, 2017 & 2016 consecutively. We are also the largest Gold Financing Company in India in terms of loan portfolio, according to the 2015 update to the IMaCS Research & Analytics Industry Reports, Gold Loans Market in India, 2015 ("IMaCS Industry Report, (2015 Update)"). We provide personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time-frame, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.
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