Your Ultimate Buying Guide For Gold Jewelry
- 23 Jun
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We Indians have a special place for the precious yellow metal, and our obsession with gold during weddings, festivals, and other celebrations is not new. Gold jewelry for Indians is merely an accessory. Rather it's a long-term investment passed down to generations. We always wish to invest in the finest piece of gold jewelry, and why not? Gold has its charm, and it instantly enhances one's attire and looks.
We are so into the process of gold buying that we might think we know how to identify the piece of gold and its quality. Yet, it is now too easy to fall into the trap and buy impure gold at high prices. Since gold is a huge investment, as a buyer, we must take proactive steps to ensure that we buy only the finest piece.
So, we here at www.24karat.co.in, will highlight some of the essential tips and things to look at when investing in gold. So Find Important Tips For Buying Gold in this post.
What To Consider When Buying Gold Jewelry?
Here are some important considerations when buying gold:
1. Look for the 6-digit HUID Code
HUID refers to the abbreviation for Hallmark Unique Identification. It's a six-digit alphanumeric code comprising alphabets and digits. The BIS-certified Assaying and Hallmarking Centre stamps HUID. Each piece of gold jewelry hallmarked by the Bureau of Indian Standards (BIS) receives a unique HUID code.
If you go to a jewelry store to acquire gold jewelry following April 1, 2023, make sure that, in addition to the BIS hallmark, there's a 6-digit alphanumeric ID stamped in the gold jewelry.
The HUID enables customers to check jewelers' claims about the purity of gold jewelry pieces. The BIS Care App can verify the HUID code imprinted on the gold jewelry.
2. Your City's Gold Rate
The price of gold varies per city owing to demand, import costs, and other variables. The day's gold rate depends on the cost of transportation, octroi charges, taxes, and other fees associated with its acquisition. Every city's gold price changes daily.
The labor cost in jewelry production varies among cities, impacting gold pricing for each product. Before purchasing gold, it is critical to understand the current gold rate in your location.
Hence you must compare the gold prices and then invest. Also, buy from only trusted gold companies.
3. Check The Gold's Purity
One of the most significant gold purchasing suggestions is determining the purity of the gold you buy. The gold jewelry or coins you buy are made from an alloy of gold and other metals. The alloy's purity is determined by the proportion of gold in it. Karat and Fineness are two ways to determine the purity of precious metals.
A 24kt gold item is 99.9% pure, and the purity decreases when you select 22kt, 18kt, 14kt, and so on. As stated earlier, the best and most reliable way to check gold purity is to check for the 6-digit HUID Code.
4. Making Charges
Jewelers made charges on their jewelry and coins in addition to the cost of gold. The production of gold objects is labor-intensive, and the complexity of the design determines these costs. The gold-creating costs are proportional to the designer's creativity and the time and effort of the artisans working on each jewelry piece.
As a result, you may be paying 8-10% greater than the real worth of gold in your piece. When purchasing gold for investment purposes, it is best to purchase coins or bars. Because of the simplicity of the design, these are more economical. It saves you money by avoiding the unnecessary expenditure of making changes.
5. Wastage Charges
The preparation of gold jewelry takes place by melting and cutting gold. Also, shaping them into tailored designs can lead to gold wastage.
Jewelers add this sum to the overall cost of your item as wastage charges. However, the use of technology in the production of gold jewelry has significantly reduced waste. You must confirm with the jeweler if your item is handcrafted or machine produced. Also, remember that simpler and compound designs waste less than complex ones. Designs using precious stones produce the most waste and cost a little extra.
6. Conduct Fair Purchase
You may soon need to purchase gold goods that authorities can trace. As a result, it is always critical to carry out transparent transactions. If you buy gold for more than Rs 2 lakhs in a single transaction, regardless of the form of payment (cash or electronic), you must furnish PAN details to the jewelers.
This step has ensured the economy's digitalization and openness in financial transactions, allowing illicit money to be introduced to the legal economy. This has an additional advantage: with a validated purchase bill, you have protection if the item in question should be returned.
Also Read:- Is Investing In Silver A Good Option
Which Gold Quality is Good?
Since it is 99.9% pure gold, 24k gold is the greatest investment alternative. The purity of 22-karat gold is somewhat lower. However, it is difficult to produce and wear jewelry made of 24-karat gold since it is soft and mushy.
Furthermore, 22-carat gold is comparable to 24-carat gold and is the most commonly used gold in producing jewelry and other gold goods. 22-carat gold is also known as 916 since it comprises 91.67% pure gold.
916 Gold is more durable and solid than 999 Gold since it has other metals. If you need jewelry that stays in form no matter how rigorous your activities are, 916 Gold is the way to go.
Which Gold Is Best, KDM or 916?
The main difference between BIS 916 gold and KDM gold is that BIS 916 gold guarantees the purity and Fineness of gold jewelry since it is certified. KDM gold, being not certified, cannot guarantee the quality and Fineness of gold jewelry.
Hence, it is advisable to go for 916 Gold.
Is It Better to Buy 22k or 24k Gold Coins?
The 24k gold coin remains a solid investment as it consists of 99.99% pure gold. However, it is prone to scratches and is less resilient than 22k gold coins, which contain 91.67% gold. Because of the higher amount of gold contained, 24k gold coins have a higher primary value than 22k.
We hope this information will help you make an informed decision when buying gold. No matter why you buy gold, it is important to check the gold quality and participate in fair trading practices.