Gold Buying Tips: Keep these things in mind before buying gold during festivals, otherwise you may lose lakhs..
The festive season is here, and everyone wants to buy something auspicious for Karva Chauth, Dhanteras, and Diwali. Buying gold is not only considered auspicious in Indian tradition, but also a good investment and security measure. However, buying gold based on hearsay or without proper information could cost you thousands, if not lakhs, of rupees. Therefore, it's crucial to keep these things in mind before shopping this year to ensure a joyful and sensible festival.
Check the latest gold rate yourself.
The price of gold on Dhanteras or Diwali varies from city to city. Whether in Delhi, Mumbai, Jaipur, or Patna, rates vary slightly. Therefore, before heading to a jewelry shop, be sure to check your city's 22-carat and 24-carat gold rates online. Jewelers often quote higher prices than the actual price, resulting in losses for customers. Therefore, be sure to check the gold price on your mobile phone to avoid being overcharged.
Compare different jewelers
Each jeweler charges a different making charge and wastage charge. Some may charge less, others more. Therefore, be sure to compare rates from 2-3 stores before purchasing. Jewelers often offer discounts or offers during festivals. If the making charge seems high, don't hesitate to negotiate. A little research can save you thousands.
Understand Making Charges and Waste Charges
The cost of designing jewelry is called the making charge. It's either calculated by the gram or as a percentage of the total price. This charge is lower for simple designs, while it's higher for heavy designs. Many jewelers reduce or even waive making charges during festivals, so be sure to ask for these details.
Waste charge is the cost of gold wasted during designing. Be sure to clarify this beforehand.
Be sure to check the hallmark and HUID number.
When purchasing gold, it's crucial to purchase hallmarked jewelry. Hallmarking is a government certification that guarantees the purity of the gold. It consists of five components: the BIS logo, carat information (e.g., 22K, 18K), the jeweler's identification, the testing center's mark, and most importantly, the HUID number, which is a unique code for each piece of jewelry.
Before purchasing gold, verify the HUID number on the BIS Care app. This will ensure that your gold is genuine and pure.
Check GST and Bill
Gold purchases attract a 3% GST. For example, if you purchased gold worth ₹50,000, GST will be charged at ₹1,500. GST should be listed separately on the bill. Always obtain a valid bill, clearly indicating the carat, weight, making charges, GST, and HUID number. Jewelry purchased without a bill may be difficult to claim or sell later.
Know the Buy-Back Policy
If you plan to sell the same jewelry in the future, ask the jeweler in advance how much they will deduct under the buy-back policy. Some jewelers offer the full price, while others deduct the making charges. Clearing these details up front will prevent any problems later.
What Purity of Gold to Buy
Gold purity is measured in carats. Be sure to check the carat when purchasing to avoid being deceived.
24-carat gold is 99.9% pure, but it is very soft, so it is not used for jewelry.
22-carat (91.6%) gold is most commonly used for jewelry.
18- or 14-carat gold is used in fashion jewelry because it contains other metals.
Shop wisely during festivals.
Buying gold during Karva Chauth, Dhanteras, and Diwali is auspicious, but only a wise investment yields true benefits. So, whenever you visit a showroom this time, keep these things in mind: check the rates yourself, look for hallmarks, obtain a bill, and understand the buy-back policy. Only then will your gold truly shine, and the joy of the festival will be doubled.
Disclaimer: This content has been sourced and edited from NDTV India. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
