What to Look for When Buying Gold Jewellery in India

India loves the precious yellow metal. Our obsession for gold is a world-renowned fact, one that needs no debate. And when we say we love buying gold, it most often means gold jewellery. For the average Indian gold buyer, it is not only an investment but also a precious fashion accessory. And we love to flaunt it every chance we get, don’t we? An Indian woman’s attire and her wardrobe are never incomplete without some or the other form of gold jewellery in it.

On an average, Indians, both in India and around the world, are among the top consumers of gold jewellery. The number of jewellery stores speckled across India is a testimony to this. As a population of gold lovers, we believe we have mastered the art of buying gold jewellery. But is this belief true? Not really, especially when we consider the quantity of impure gold jewellery doing the rounds in the Indian gold market. Most often, people find out to their surprise that they are fooled into buying impure gold jewellery at the cost of high-purity jewels. To buy real gold jewellery and avoid losing money on your investment, read on.

The Dos of Buying Gold Jewellery

As a gold-loving nation, the mention of the yellow metal catches our attention. This often also distracts from doing the due diligence required to buy gold jewellery. In the rush to buy gold at the best rates, it’s quite common to make mistakes. However, remembering the dos of buying gold jewellery can ensure that you get the worth for your investment.

• Check the purity: The first step is to check for the purity of gold used to make the jewellery you have your eyes on. The best method to check for purity of gold is to find the hallmarking on the piece of jewellery. A hallmark carries the official proportion of gold used. The official agency responsible for certifying and hallmarking gold jewellery in India is the Bureau of Indian Standards (BIS). So, when you buy gold, always go for BIS-certified gold.
• Know the Basics: Any jewellery with a hallmark comes with a specific number usually engraved with the BIS stamp. It also carries the year of hallmark and a mark to identify the jeweller. To understand what the caratage is, find the letter “K”. This denotes karat or the percentage of purity. For example, 22kt gold contains 91.6% pure gold and is engraved with 916.
• Cross-check the price: The purity of gold determines its price, which changes daily. Jewellery stores display the daily rates of bullion for their consumers. Ensure you check the market rate before purchasing.
• Negotiate the Making Charges: Jewellery making involves a labour cost, which varies. You have the right to bargain and get the best price on your jewellery.

The Don’ts of Buying Gold Jewellery

• Plain gold vs. stone-studded jewellery: Avoid buying stone-studded jewellery if it’s for investment. The purity of stones is difficult to assess, and such jewellery incurs higher making charges.
• Cheap doesn’t mean the best: Always buy from a BIS-hallmarked jeweller to ensure purity and authenticity.
• Don’t resell to other jewellers: Most jewellers have a buy-back policy that ensures you get 100% of the net value of gold. Selling elsewhere may lead to lower returns.
• Don’t buy jewellery without bills: Always ask for a bill to ensure proper documentation and ease of resale or exchange.

Indulge in your love of gold with a little caution and a lot of preparation. Keeping these dos and don’ts of buying gold jewellery in mind will ensure you get the most out of your investment, now and every time.