7 things to check before buying gold

1. Verify the purity of the gold

First and foremost, scrutinize the gold's purity before making a purchase. Most gold jewelry is available in 22-carat, 18-carat, or 14-carat purity. Confirm the BIS hallmark and the unique identification number (HUID) engraved on the piece. Utilize the BIS Care app to validate the purity claim made by the seller.

2. Determine the actual weight of the jewelry

The weight of the jewelry significantly influences its price. Request the jeweler to weigh the item in your presence and clearly mention the gross weight and net gold weight on the invoice. This step is crucial when buying jewelry adorned with diamonds, gemstones, or other materials. Remember, the final price often includes the cost of these stones and other non-gold components. Ensure you are aware of the gold weight included in the jewelry.

3. Monitor the daily gold rate

Gold rates fluctuate daily based on international market prices, state taxes, exchange rates, and the metal's demand. Prices may also vary between different jewelers. Familiarize yourself with the current gold rate before visiting a shop to make an informed decision.

4. Comprehend making charges and wastage costs

Additional charges can make gold jewelry more expensive. These charges cover the cost of designing and manufacturing the jewelry. Percentages of the gold's value or fixed amounts per gram are common ways jewellers calculate these charges. Some jewelers may also charge for waste material during the design process. Refuse to accept an amalgamated number and demand a detailed breakdown of both charges to truly understand the value of similar jewelry in stores. Look for any festive discounts on making charges, but assess the overall cost.

5. Familiarize yourself with buyback and exchange policies

If you intend to exchange or sell the jewelry later, inquire about the jeweler's buyback policy before purchasing. Rules for exchanging old gold differ among retailers, including deductions for stones and making charges. Before finalizing the purchase, ask pertinent questions: Will the jeweler buy back the jewelry at the prevailing gold rate? Are there any deductions when exchanging the item?

6. Scrutinize the final bill and tax details

Before making the payment, carefully review the invoice. It should clearly state the jewelry's description, purity, weight, gold rate, making charges, applicable taxes, and the total amount payable. Ensure any listing of diamonds or other stones is separate from the gold price, if applicable.

7. Compare alternative gold investment options

Gold purchases do not necessarily have to be jewelry. If the primary goal is gold investment, compare the cost of jewelry with gold coins, bars, or financial instruments such as gold ETFs. Jewelry often incurs making charges and other expenses that may not be recovered upon resale. The optimal choice for you depends on your reasons for buying gold.

If jewelry is desired for festive and family occasions, it may be the preferred option. However, if the objective is investment, consider the total expenditure required for purchase and resale, among other factors, before making a decision.