How To Avoid Scams When Buying Gold Jewellery

by Zeya By Kundan Writer ZeyaByKundan

While gold is one of the most popular and valued precious metals in India, it is also the most expensive and volatile. In India, it holds a sentimental value and is a treasured possession in the form of bullion i.e., coins & bars, and most commonly as gold jewellery. Not only are gold jewellery & products a part of auspicious occasions, festivals and weddings but are also considered one of the best long-term investment instruments. We all know that unadulterated, pure gold is highly expensive; therefore, it is one of the most volatile commodities and when it comes to buying jewellery, it is important to be vigilant and not get roped into a scam, which could lead to a substantial loss.

Jewellery is every women closest companion, and is the ideal method to play up or style with an outfit. However in India, today's most jewellery is treated for a purchase for special occasions and especially for weddings.

Let's discuss some important factors, Do's & Don'ts when buying gold jewellery:

VERIFY THE GOLD PURITY:

Karat (abbreviated K or kt) is the most commonly used measure of it's purity and is assessed in the range of 14k - 24k. the higher the karat, the purer the gold, and higher the price. The best way to measure and verify purity when buying jewellery is by checking for hallmarking. Hallmarked jewellery depicts the official proportion of gold in the piece. The Bureau of Indian Standards (BIS) is the accreditation agency that certifies and hallmarks gold jewellery. Any piece of hallmarked gold jewellery will come with a number attached to it, a BIS stamp on it and a jeweller's identification mark along with the year of hallmark. It is best to verify these certifications and documents before buying any jewellery.

NEGOTIATE ON MAKING CHARGES:

Jewellery making involves a lot of backend expenses and labour cost which is charged into the final value of the jewellery to the customer as making charges. There is no uniform rate or percentage of making charges pre-decided. Jewellers can charge anywhere from 15% to 40% as making charges depending on the current cost or the machinery and manpower used to create the piece of jewellery. One can negotiate or bargain on making charges since these are not standardized costs.

AVOID ENAMEL, STONES, ZIRCON, BUY PURE GOLD:

The price of gold jewellery largely depends on the weight. Therefore, it is always advisable to avoid buying gold ornaments with large stones, enamel or zircons as these will add to the weight of the jewellery and would unnecessarily inflate the price. In this case, you would essentially be buying semi-precious stones or plastic in place of the gold you are actually paying for. For example, if you were to buy 22k gold earrings designs for female , the value would be calculated according to the gold weight, but if the same earrings had zircons or stones, the weight would increase and you would end up paying more for the same earrings, without getting the ideal amount of gold paid for.

CAREFULLY CHOOSE YOUR JEWELLER:

It is always a good idea to be wary and buy gold jewellery from a trusted, well renowned jeweller who provides all the necessary certifications and hallmarking along with benefits like easy buy back policies and after sales service.

SELL TO THE SAME JEWELLER:

Always sell your gold jewellery to the same jeweller you bought it from. Since most jewellers provide exchange options and easy buy back benefits, it is a good idea to bring back your precious jewellery for an upgrade to the original seller to get the best price and value.

BEWARE OF THE 'KARATMETER':

A device called a 'karatmeter' is used by many jewellers to determine the purity of gold in the jewellery. This device is not authorised by The BIS - Bureau of Indian Standards. As an informed customer, you may demand a better, more authentic form of testing known as assaying, to determine the value and cost of your jewellery for a nominal fee.

WASTAGE CHARGES ARE A SCAM:

Some Jewellers levy a wastage charge of 5 - 10 % for creating or making a certain design or piece of jewellery, claiming that a percentage of gold went to waste while making it. It is important to be aware that no gold is wasted during the process in any way and this charge can be easily negotiated.

It is more than just an ornament or fashion statement. Gold is Money, and safeguarding your money is in your hands. So, indulge in your love for gold jewellery, but with caution. By following these few tips and tricks, get the most out of your investment every time you buy gold jewellery .