Prioritise Hallmarking Above All
Before you even consider the design or price, your first check should be for the Bureau of Indian Standards (BIS) hallmark. Since 2021, all gold jewellery sold in India must be hallmarked. This mark is your guarantee of purity. A proper hallmark consists
of three distinct symbols: the BIS logo, a mark indicating purity and fineness (for 22-karat gold, this will be '22K916'), and a six-character alphanumeric Hallmark Unique Identification (HUID) number. This HUID code is unique to each piece of jewellery and allows for complete traceability. You can instantly verify it using the 'Verify HUID' feature on the BIS CARE mobile app. If a piece lacks these three marks, you should not buy it.
Deconstruct the Final Price
The price tag on a piece of jewellery is not just the value of the gold. The final bill is a sum of several components. The primary part is the price of gold, calculated by multiplying the weight of the gold in grams by the day's gold rate. On top of this, the jeweller adds 'making charges' for the labour involved in crafting the piece. Finally, a Goods and Services Tax (GST) of 3% is levied on the total value of the gold plus the making charges. Always ask for a detailed, itemised bill that clearly breaks down each of these costs. This transparency is key to understanding what you are paying for.
Negotiate the Making Charges
Making charges can significantly inflate the final cost and are one of the few negotiable parts of your purchase. These charges can range anywhere from 5% to over 25% of the gold's value, depending on the intricacy of the design and the jeweller's policy. Some jewellers charge a flat rate per gram, while others use a percentage. Machine-made jewellery typically has lower making charges than handcrafted pieces. Don't hesitate to negotiate this cost, especially when buying heavier items or multiple pieces. Also, be wary of terms like 'wastage charges,' which is another name for making charges and can sometimes be used to add extra cost.
Verify the Weight and Purity
Always ensure the jewellery is weighed in front of you on an accurate scale. If the piece is studded with stones or diamonds, these should be weighed separately. The final bill should clearly state the net weight of the gold, excluding the weight of any gemstones. Many jewellers will charge for the stones separately based on their type and quality. This is crucial because when you sell the jewellery later, the value will be based almost entirely on the net weight of the gold. Reputable jewellers will always be transparent about this breakdown.
Clarify the Buy-Back Policy
Gold is not just an adornment; it's an investment. Therefore, it is essential to understand the jeweller's buy-back or exchange policy before you finalise the purchase. Most jewellers will offer to buy back the gold, but the terms can vary widely. Typically, they will pay based on the prevailing gold rate on the day of sale, but they will not refund the making charges or the GST you paid. Some may deduct an additional percentage. Ask for the policy in writing. Knowing the exact terms of exchange and resale protects the long-term value of your investment should you choose to sell or upgrade in the future.
