From ancient times, gold has been considered a safe-haven asset and a symbol of prosperity. However, when it comes to buying gold jewellery, how do you ascertain the quality and value of the piece you are acquiring? Here are five important things that you should check when buying gold jewellery.
1. Gold Karat and Fineness
In gold jewellery, karats are a measure of the purity of gold; the higher the karat, the purer the gold. Pure gold is measured as 24 karat, but it's too soft to be used for jewellery. So, it's usually mixed with other metals to strengthen it. Common purities in the market are 22K, 18K and 14K. Therefore, always check the karat of gold before purchasing; it directly impacts the price and durability.
Silmilarly, the Millesimal Fineness system gauges the purity of gold by measuring it in parts per thousand or as a gold percentage. Under this system, if a piece of gold is marked with 999, it means that your 24K gold is 99.90% pure, with the other 0.1% being made up of some other metal. Moreover, a gold marked with 999.9 signifies that it is 99.99% pure, with just 0.01% made up of another metal. It's always a good idea to inquire about the purity of gold from your jeweler, bank, or digital platform before making a purchase. For instance, gold products from MMTC-PAMP have a purity level of 99.99%.
2. Hallmark
The second most important factor is the Hallmark. It certifies the purity of the gold you are buying.Effective April 1, 2023, the sale of hallmarked gold jewellery and artefacts without a Hallmark Unique Identification (HUID) number has been prohibited. This reform, initiated by the government, is now being implemented and jewellers are obliged to sell only items featuring the HUID code across all their nationwide outlets.
The HUID is a stamp placed on every piece of jewellery by authorised Assaying and Hallmarking centres. Its primary purpose is to vouch for the purity of the item, thereby protecting consumer interests and fortifying the framework for purity standardization within the jewellery retail trade.
As per the HUID regulations, each piece of jewellery will display three features: a Bureau of Indian Standards (BIS) logo, the karat level to signify purity, and a unique six-digit alphanumeric HUID code. Consumers can swiftly verify the purity of the gold jewellery by inputting the HUID number into the BIS Care mobile app. Additional details about the hallmarking date, the centre where it was hallmarked, and information about the jeweller can also be accessed via this app. The HUID system will further enhance the tracking and traceability of jewellery, providing full transparency throughout the value chain
Hence, always look for the hallmark on the jewellery. It gives information about the jeweller's identification, year of marking, the assay centre, and purity grade.
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3. Weight and Price
Gold jewellery is sold based on its weight. The heavier the piece, the higher the price. Therefore, understanding the exact weight of gold in the jewellery will help you know the correct price. Also, remember to check gold rates before purchasing as they fluctuate daily.
4. Craftsmanship
The craftsmanship or making charges adds to the total cost of your gold jewellery. Jewellers charge for the design and intricacy of jewellery pieces. Artistic or elaborate designs usually carry higher making charges, typically calculated as a percentage of the gold rate. Make sure to ask for a breakdown of these charges before making a purchase. Generally on coins making charges are upto 10 per cent whereas on jelwellery it can be as high as upto 40 per cent. So always ask for the break up before buying a gold jewellery so that you have an idea beforehand about how much you will receive if you return, based on its weight.
5. Return Policy
People generally buy gold as a long-term investment. Therefore, it’s important to understand the return or buyback policy. Jewellers usually deduct a certain amount, as making charges, during the buyback. So, before purchasing, it’s crucial to clarify the buyback terms and conditions.Finally, make sure the retailer you buy from is trusted and reputable. Purchasing gold jewellery isn’t like buying clothing or accessories; it’s an investment. Therefore, researching the retailer’s reputation is crucial. If you have doubts, consider seeking feedback from their previous customers or looking up online reviews.
Never rush your gold jewellery purchase; remember, it is a critical financial investment. Ask questions until you are entirely satisfied. Always keep abreath of current gold prices and new styles in the market.
