Confirm Purity: Karats and Hallmarking
The first step is to verify the gold's purity, measured in karats (K). Pure gold is 24K, but it is too soft for most jewellery. Therefore, it's mixed with alloys for strength. In India, 22K (91.6% pure gold) is popular for traditional jewellery, while
18K (75% pure gold) is often used for diamond and modern studded pieces. To be certain of this purity, look for the Bureau of Indian Standards (BIS) Hallmark. As of 2023, it is mandatory for jewellers to sell hallmarked gold jewellery with a 6-digit alphanumeric Hallmark Unique Identification Number (HUID). This code consists of the BIS logo, the purity grade (e.g., 22K916), and the HUID, which ensures traceability and authenticity. You can verify this HUID using the BIS CARE mobile app.
Deconstruct the Bill: Making Charges and GST
The final price of jewellery is not just the value of the gold. It includes making charges and Goods and Services Tax (GST). Making charges, or labour charges, cover the cost of designing and crafting the ornament and can range from 5% to over 25% of the gold's value, depending on the intricacy of the design. These charges can be a fixed rate per gram or a percentage of the gold value. While you can't negotiate the gold rate, there is often room to negotiate the making charges. On top of this, a GST of 3% is applied to the total value of the gold and the making charges. Always insist on a detailed bill that breaks down the gold weight, rate, making charges, and GST separately.
Understand the Buy-Back Policy
Jewellery is often seen as an investment, so it's crucial to understand the jeweller's buy-back or exchange policy before you purchase. Ask for the terms in writing. Most jewellers will repurchase their own jewellery, but the valuation method differs. Generally, when you sell gold back, you will not be refunded for the making charges or the GST you paid. The value will be calculated based on the net weight of the gold at the prevailing rate on the day of sale. For studded jewellery, the value of stones is often deducted or assessed at a much lower rate. A transparent buy-back policy from a reputed jeweller ensures you get a fair value if you decide to sell or exchange your jewellery in the future.
Check the Net Weight, Especially for Studded Pieces
When buying jewellery with diamonds or other gemstones, pay close attention to the gross weight versus the net gold weight. The bill should clearly state the weight of the gold and the weight of the stones separately. You are paying for the gold by its weight, so you shouldn't be charged the price of gold for the weight of the stones. A reputable jeweller will always provide this breakdown. This is particularly important because when you sell or exchange the piece, the stones are typically removed or their weight is deducted before the gold is valued.
Choose a Reputable Jeweller
In a market with fluctuating prices, your choice of jeweller is critical. A trusted jeweller, whether a large brand or a local family-run shop with a long-standing reputation, will provide transparent billing, certified hallmarked jewellery, and clear policies on exchange and buy-back. The Government of India has been expanding the mandatory hallmarking scheme to more districts to ensure consumer protection, so jewellers are increasingly required to adhere to these standards. Checking customer reviews and asking for recommendations can help you find a jeweller who prioritises quality and customer trust, giving you peace of mind with your significant purchase.
