Punjab Newsline | Business
Buying gold and silver involves more than simply checking the market price. The final cost of jewellery depends on several factors, including purity, weight, making charges and GST. Without understanding these details, customers may end up paying more than necessary. Taking a few precautions before purchasing jewellery, particularly during the wedding and festive seasons, can help buyers avoid unnecessary expenses.
Compare Market Rates and the Final Price
Gold and silver prices change regularly, while local market conditions can cause rates to vary from one city to another. Before making a purchase, check the latest prices and obtain quotations from at least two or three reputed jewellers. Do not make a decision based solely on a lower per-gram rate, as making charges and other costs can significantly increase the final bill.
Check Purity Through Carat and Hallmarking
Pure gold is available in 24-carat form, while jewellery is generally made using 22-carat or lower-purity gold. Before purchasing an ornament, check the Bureau of Indian Standards (BIS) hallmark and the HUID number. The Hallmark Unique Identification Number can be verified through the BIS Care app, helping buyers check the authenticity of the jewellery.
Understand Making Charges and the Cost of Stones
The price of jewellery also includes making charges and other costs depending on its design. Ask the jeweller whether making charges are calculated according to weight or as a percentage of the gold value. For jewellery featuring Kundan, Polki or diamonds, ensure that the weight and price of gold and precious stones are recorded separately.
Always Ask for a Proper Bill
A purchase bill should clearly mention the purity of gold, weight, per-gram rate, making charges, GST and the total amount paid. It serves as an important document when exchanging or selling jewellery or raising a complaint in the future. Avoid purchasing jewellery without a proper bill.
Understand the Conditions Before Exchanging Old Jewellery
If you plan to exchange old gold for new jewellery, first get the purity and weight of the old ornaments checked. Ask the jeweller about the rate at which the old gold will be valued and whether any deductions will be made for testing or melting. Ensure that the value of the old gold and the making charges for the new jewellery are mentioned separately.
Compare Investment Options Before Buying
Those purchasing gold for investment should compare the costs of jewellery with alternatives such as gold coins and bars. Making charges paid on jewellery are generally not recovered when it is sold. Buyers should therefore consider their requirements, budget and additional expenses before deciding which option suits them.
