Gold is almost as important in Indian history as a surgeon for an operation. Though the comparison is overdramatic, there is no denying that gold is one of the most important commodities in Indian families. Buying gold jewellery is a tradition prevalent in all parts of the continent.
Over the years, the obsession with buying gold jewellery has not dulled even by a karat. This infatuation can be credited to its overall value. Besides its cultural significance, gold is a shiny representation of one’s social status.
Although most Indians survive on meagre resources, buying gold jewellery always remains on their agendas for different purposes. Therefore, an extensive guide on gold jewellery buying tips can be found everywhere.
Irrespective of its rates, the gold-buying business never dulls in India. With the deep-rooted significance of buying gold jewellery in our country, one can also come across counterfeit gold. Therefore, learning about the best tips for buying gold jewellery becomes essential.
Gold’s beauty, cultural significance, and financial value have made it a great investment commodity because it retains value and represents special occasions. It is also fair to say that it’s worth investing in as it can last a lifetime if chosen properly. Hence there are several factors to consider before buying gold jewellery to make it last longer.
“This article will share the best tips on how to buy gold jewellery in India”.
Basic Information about Gold before going into gold jewellery buying tips
Read more: Best Way to Invest in Gold
1. Research on the Quality of Gold
One of the essential tips for buying gold jewellery is knowing the purity of the gold. When you buy gold jewellery online in India or even offline, you buy jewellery made from an alloy of gold and other metals. The percentage of gold in the alloy will determine its quality.
Gold is characterized by its purity measured in karats. The karat measurement calculates the purity by dividing it into 24ths. For example, 24-karat gold is 100% pure, and 12-karat gold is 50% pure.
2. Decide what Purity of Gold is best suited for you
24 karat is the highest quality of gold available in the market, and therefore it is the most expensive type. As the karats decrease, naturally, the price also decreases. Now, as per the gold jewellery buying tips from the experts, you must also weigh factors other than the price point while buying gold jewellery.
24-karat gold is soft and can be easily scratched, resulting in damage. This property makes it less preferable for regular-wear jewellery. However, 18 to 22-karat gold is ideal for regular wear jewellery. This is because the other alloys added in gold make it cheaper and stronger. Therefore, as per your needs and budget, you can find how to buy gold jewellery that’s perfect for you.
3. Plated or Vermeil Gold
These two types of gold are fairly prevalent to cut down on costs. Plated and vermeil gold jewellery looks almost similar to gold jewellery but has a drastically lower price. This is because they follow the method of coating another base metal with gold to create an illusion of gold.
Plated gold refers to electroplating metals like steel or brass with pure gold. The layer formed on the metal is thin and can easily wear out.
Vermeil gold follows the same process, except the base metal is silver. It is more widely used than plated gold. It can be a good alternative for people allergic to precious metals.
You can find and buy gold jewellery online in India with both these kinds of gold.
4. Choose the Colour of your Gold.
Gold generally comes in three colours, yellow, white, and rose. There is also a green variety, which is rare, created by mixing gold with other metals.
Yellow gold represents the natural colour of the metal, but that does not essentially mean that all yellow gold is pure.
#White gold is gold mixed with palladium or nickel. It looks like silver but has a brighter hue.
#Rose gold or pink gold is made by mixing copper with gold.
#Green gold is created by mixing silver, making it the most expensive.
With the basic information on gold, let’s look into other important gold jewellery-buying tips to make it a profitable investment.
The Do’s on How to Buy Gold Jewellery
Here are the things you need to check before buying gold jewellery:
1. Check for the latest gold rates in your city
The gold rates vary with the city due to factors like demand, import costs, and taxes. Other things like transportation costs, Labor costs, etc., also determine the final rate of gold in your city on a particular day. Moreover, gold rates are revised twice daily (in the morning and evening).
Hence, it is ideal to know the current rate of gold in your city a day before buying gold jewellery.
2. Look for a reputable seller
Though the giants and commercial outlets from some reputable brands have penetrated cities big and small, the importance of the neighbourhood goldsmith remains intact in India. Our grandmas and moms trusted their go-to goldsmiths for decades, but the factor of trust has somehow diminished with newer generations.
In these cases, you can ask for their certifications and hallmarks and do your research before buying gold jewellery from an individual seller. One of the tips for buying gold jewellery from the experts is to pick a seller that offers a warranty, resizing, and custom design.
Compare the design, price, and service of different jewellers. You can also check online stores to buy gold jewellery online in India.
3. Check for Hallmarks
Hallmarking is officially the most important thing to look at while buying gold jewellery. It is proof of the credibility and purity claim for any precious metal.
In India, the Bureau of Indian Standards regulates the certification of gold as per the Government norms making it a mandate on all ornaments.
Therefore checking the hallmark is one of the most important gold jewellery-buying tips.
4. Weigh-in Making charges
Different sellers levy different making charges, which are over and above the current market rate. The making charges vary from seller to seller and are directly related to the level of the finesse of the design and making. Since making gold jewellery is labour intensive, long hours and precise work is gone behind each article, impacting the final value of the article.
The final amount you pay could be 8-10% higher than normal gold rates, depending on the intricacy of the work on your jewellery. Paying high making charges makes sense only when you are buying gold jewellery as an ornament. However, if you want to buy gold only for investment purposes, you must buy gold coins or bars.
5. The Final Calculation
As mentioned above, several factors go behind the final cost of your gold jewellery.
Just to recap, things like your location, design, embellishments, vendor, etc, directly impact gold jewellery. One of the most important gold-buying tips is to know what you are paying for and read through the fine print.
The gold sellers generally use the following formula to give you the final amount:
Final Jewellery Price = [Price of (24 Karat/ 22 Karat/ 18 Karat) gold per gram on date of purchase * Weight of Gold ( in grams)] + Making charges + Wastage charges + GST at 3% on (Total charges)
The Don’ts of Buying Gold Jewellery
Knowing the don’ts with the gold buying tips is a smart thing to do before making the final decision:
1. Compound gold vs. the studded gold
Though this decision widely depends on your need and taste in jewellery, buying gold jewellery with compound designs is preferable if you see gold as an investment rather than an ornament. The purity of stone-studded jewellery is difficult to assess and calls for an increased making charge.
2. Reselling to other jewellers
The most common trend with jewellery is buying gold jewellery in return for old pieces. But one thing to take care of while doing so is to sell your old jewellery to the seller you bought it from. This is because some sellers have a buy-back policy, giving you a 100% return on your net value.
It would be best to remember this before you buy gold jewellery online in India.
3. Forgetting/avoiding bills
If you buy gold jewellery valued over INR 50,000, you are liable to pay taxes and share your PAN card details. To avoid this, some people buy without bills, which is wrong. It could lead to problems while reselling it as well as legal trouble.
Tips for Buying Gold Jewellery – FAQs
What are Wastage Charges?
Ans. Since jewellery is made by melting, cutting, and moulding the metal into different designs, intricate designs lead to a lot of waste. Some jewellers include this wastage in the overall cost of the jewellery.
One of the tips on how to buy gold jewellery is to look for more compound designs if you want to have your money’s worth of gold as they have lesser wastage than complex designs. Designs with gemstones also contribute to higher wastage charges.
What are the best tips for buying gold jewellery laced with gems or stones?
Ans. Though assessing the purity of gems/ stones in a piece of jewellery is difficult, you should always check for the net weight of gold and pay as per that. You can also negotiate on the making prices.
Are the making charges included in the resale value of gold?
Ans. No, the making charges are not included in the resale value of gold.
How important is the hallmarking while buying gold jewellery?
Ans. Looking for a Hallmark is one of the top gold jewellery buying tips. You can get it checked anywhere from the 13,700 BIS-hallmarked showrooms present in India.
Which type of gold has the best resale value?
Ans. The 24-karat gold has the highest resale value.