Nine things you should check before buying gold jewellery

Raise your hands if you have ever been fascinated by the gold jewellery. We love gold, isn’t it? Besides being a fashion accessory, gold can also be an excellent investment option. But, before buying the captivating yellow metal, you must avoid a few silly mistakes to get the best deal.

Money9 tells you nine things that a consumer should check before buying gold jewellery.

Pure or not

Before putting your money into the jewellery of your dreams, you must check if the gold is pure or impure. How do we check that? Well, gold purity is measured in terms of karat. Twenty-four karat gold is considered pure. For ornaments, 22 karat gold is used.

Hallmark

Check if the hallmarking is done. The BIS (Bureau of Indian Standards) certifies the purity of gold to help consumers make the right choice. If the ornament doesn’t have any hallmark, then avoid buying it.

Weight of the jewellery

Before sliding your money into shopkeeper’s pocket, check the weight of the jewellery. In India, jewellery is mostly sold by weight. Along with gold many other ornaments are used to make the final product. Therefore, you must not pay for more gold than it is actually used.

Making charges

Cost of gold is influenced by the making charges. You can be trapped into paying higher making prices than what actually is. Always insist on fixed making charges. Making charges of machine-made jewellery is generally lower than the man-made ones. Always check the cost breakup of the final price that the retailer is making. Check if the calculation is correct and you haven’t been taxed twice.

Buy Back terms

Always know the buyback terms before buying. Jewellery can be exchanged as well after a few years if you want any new design or are bored with the previous one. Insist on keeping the price fixed.

Demand

High demand often increases the price of gold. A smarter way to invest in gold jewellery is to invest in the off season and not when the demand is high.

Jewellery store

Try going to reputed or known shops. If the shop is reputed or the retailer is known to you, chances of scam are less.

Carry your Aadhar and PAN card

The jewellers/shop will ask for your PAN card and Aadhaar card for purchase of over Rs 2 lakh. Of late, they have been seeking KYC documents for purchases even under Rs 2 lakh.

Ask for bill, always

Make it your mantra before buying gold jewellery- Always ask for the bill. In case of any fraud, you can always show your bill to the authorities. Also, in case you want to exchange your purchase, having a bill always helps.

The next time you buy the precious yellow metal, do not forget to check the above things.