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Questions to Ask Before You Buy Gold in 2024

The direction of economic headwinds in the world is still uncertain, even though we’re in 2024. And, buying gold remains the top thought in every Indian’s mind, because of traditional, cultural, and other reasons.

But, before you invest in gold, do not forget that the gold business in India has never been apparent. There was a survey conducted by the World Gold Council, where they found that the number of jewellers (385000-410000) is more than the bank branches (125000) in the country. Most Indian jewellers have small shops and they operate independently.

According to a report by the World Gold Council (WGC) 2017, this means that despite 15 years of hallmarking, jewellery of gold is yet under-created. As per the consultancy – Oliver Wyman’s research, the under-carpeting of gold jewellery has gone down 10 to 15 percent from 20 to 40 percent.

Here’s a checklist that you must follow before you buy gold in order to avoid being duped:

Buy Gold Jewellery Hallmarked Only:

You must ensure that the gold you purchase is from the Bureau of Indian Standards (BIS) hallmarked jeweler. BIS has a list of around 600 recognized hallmarking centers. You can get in touch with the concerned persons if you have any issues regarding hallmarked gold.

The BIS gives surprise visits, check, and can cancel the jeweler’s license of the BIS-hallmarked shops or showrooms in case of legitimate complaints.

You May Read: 22ct and 24ct Gold Difference

Be Aware of the Gold Rate Per Gram before you Buy Gold:

You must check the gold rate today before you buy gold. The gold rate varies from one association of jewelers to another and one city to another. Gold rates generally change two times a day, i.e. in the morning and in the evening.

Make sure you keep a sharp vigil on the prevailing rates on a reliable website before purchasing. You can also check the rates in the newspaper.

Hand-Made or Machine-Made Jewellery:

In this age of technology and mass production, it is common to come across machine-made jewelry. Making changes to the machine-made artifacts is lesser than the hand-made ornaments.

Check the Buy-Back Terms:

You must find out what the jeweller is ready to offer, in case you return your jewellery in the future or exchange it for another design. Many jewellers promise to buy back gold jewellery at the prevailing rates if you wish to go with this option.

Yes, this means that you will not get any compensation for the wastage or making charges, but you will have an assurance to fall back on. Make sure there’s a buy-back and exchange policy valid during a specific period, which you must be aware of. This means that you can return your jewellery if you have any grounds for complaint.

Check Purity Level before you Buy Gold:

Gold comes in different levels of purity, which can affect the cost. For example, 24Kgold is the purest form of gold. This form of gold is extremely malleable. This is the reason that gold is usually combined with another alloy for ornamental purposes. However, the type of alloy used for making the ornaments also plays an important role in determining the price.

Ok, if you didn’t understand, let’s take an example:

22K gold is about 91.6 percent gold. This contains 22 parts of pure gold and 2 parts of alloy. Similarly, 18K gold contains 18 parts of gold while the remaining 6 parts are another alloy, making 75 percent gold.

You must research the form of gold you wish to buy and the rates vary with purity levels.

You May Read: Different Types of Gold You Should Know

Check How Many Grams of Gold You Actually Get?

Many gold jewelers have a trick up their sleeve, which they have practiced down the ages. They, simply, complicate the cards.

How? Here’s the explanation:

At many jewelry showrooms, besides the per gram cost, there are some extra columns added for wastage (varies with the type of ornament) along with making changes.

Once you’ve decided to buy the jewellery, the percentage of wastage and making charges are removed from the card of rates as special discounts, but this hasn’t made the picture simpler, has it?

Now, the question is, ‘what would be the better way of simplifying?

It’s simple; you just find out the gold you’re actually getting in hand for the paid price.

Didn’t understand? Let’s take an example:

If the final price you have to pay is Rs. 30K and you get a 10gm bracelet in hand, then you have paid Rs. 3K per gram. From this amount, deduct that day’s actual gold rate per gram and check how much more have you paid per gram.

Do Not Forget to Take the Bill:

You must not forget to take the bill. This means that you might have to pay Goods and Services Tax (GST) and share your AADHAAR/PAN card details, in case of making a bigger purchase. A bill will ensure transparency and offer you assurance of authenticity.

Wrapping It Up!

You must keep this checklist handy before making a purchase, and to ensure that you get the best deal. Gold not only holds an ornamental value but also is an admirable investment option today.

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