Start with Purity: 22K vs. 24K
The first thing to understand is gold purity, measured in karats (K). 24K gold is the purest form (99.9% pure), but it's very soft and not suitable for intricate or durable jewellery. This is why most Indian wedding jewellery is made from 22K gold. 22K gold consists
of 22 parts gold and 2 parts other metals like silver or copper, making it 91.6% pure. This alloy gives the jewellery the necessary strength to withstand wear and hold its shape, striking the perfect balance between high purity and durability. For studded pieces, 18K gold (75% pure) is often used as it's even harder and holds gemstones more securely. For traditional wedding sets, 22K is the established standard.
Insist on the BIS Hallmark
To guarantee you're getting the purity you're paying for, always buy hallmarked jewellery. Since April 1, 2023, the Bureau of Indian Standards (BIS) has made it mandatory for all gold jewellery to have a 6-digit alphanumeric Hallmark Unique Identification (HUID) number. This is a crucial mark of authenticity. A complete BIS hallmark has three components: the BIS logo, the purity grade (e.g., 22K916), and the six-digit HUID code. This code allows for the traceability of the item from the manufacturer to the retailer, ensuring accountability. You can instantly verify the HUID using the 'Verify HUID' feature on the BIS CARE mobile app to confirm the jeweller's details, purity, and other information before you pay.
Understand the Price and Making Charges
The final price of a gold ornament isn't just the price of gold. It’s a sum of the gold value, making charges, and GST. The gold value is calculated by multiplying its weight by the day's gold rate for that purity (e.g., the 22K rate). Always verify the current market rate before you buy, as it fluctuates daily. Making charges, or labour charges, are what you pay for the craftsmanship of turning raw gold into a piece of jewellery. These can be a fixed rate per gram or a percentage of the gold's value, typically ranging from 5% to over 25% depending on the complexity of the design. This component is often negotiable, especially for larger purchases, so don't hesitate to discuss it with the jeweller.
Don't Forget the GST Breakdown
The Goods and Services Tax (GST) is another significant component of your final bill. In India, GST is applied to both the value of the gold and the making charges. You will pay 3% GST on the value of the gold itself. A separate 5% GST is applicable on the making charges. Always ask for a detailed bill that clearly breaks down the gold value, its weight and purity, the making charges, and the respective GST calculations. Selling old jewellery, however, does not attract GST.
Clarify the Buy-Back Policy
Gold is often seen as an investment, so understanding the jeweller's buy-back policy is crucial for the future. A buy-back policy is an agreement where the jeweller agrees to repurchase the gold from you at a later date. Ask for the specific terms: Will they deduct making charges? Will the valuation be based on the day's market rate? Most jewellers will not refund making charges and GST upon resale. Some may offer 100% of the gold's value on exchange but a slightly lower percentage (e.g., 94-98%) for a cash buy-back. Also, if the jewellery has stones, their value is typically deducted or assessed separately, often at a much lower rate than the original purchase price. Having this information in writing can save you from future disappointment.
Verify Everything Before Paying
Before the final payment, conduct a few simple checks. Ensure the weight of the final piece matches what is on the bill. Cross-check the HUID on the jewellery with the details in the BIS CARE app. Read the invoice carefully to ensure all charges are listed transparently, including the gold rate applied, net weight, making charges, and GST. Keep the original invoice and the authenticity certificate in a safe place, as these documents are essential for any future exchanges or buy-backs.
