Tips for Purchasing Gold Jewelry in India
Tips for purchasing Gold Jewelry in India
Indians have a passion for gold ornaments from time immemorial days, irrespective of their sex and economic status. Despite there being an upward trend in their prices, there is a heavy rush for purchasing gold ornaments and the jewelry marts have also proliferated in rapid succession. Steady increase in the price of gold has also motivated people to purchase gold ornaments considering it as a risk free investment option.
However, taking advantage of the mad rush for gold jewelry among the people, some unscrupulous gold merchants are engaged in unhealthy and unfair trade practices by selling spurious gold ornaments. Selling spurious gold ornaments means selling impure and low quality gold ornaments by flouting the norms and guidelines set by the Bureau of Indian Standards.
However, people who purchase gold ornaments can avoid such spurious goods provided they remain alert and have sufficient knowledge to purchase genuine gold ornaments.The following tips would be more useful while purchasing gold in India.
1) Quality of the gold ornaments is marked and assured by Hall Marks:
Jewelry shops sell their gold jewelry assuring Hall Marks for their 916 and KDM jewelry. If you invest in 916 Hall Mark and KDM Hall Mark jewelry, it denotes their quality is assured and guaranteed. In case of reselling them in future, you can realize their full value at the actual market rate prevailing then. In the result, your investment does not lose its face value.On the other hand it gets appreciated in value as the price of the gold increases.and so you gain profit for your investment in gold.If your gold ornaments are not assured or guaranteed for their hall marks, you tend to lose by 10% to 20 % in your profits while reselling them in future.Hence,your investments in gold gets depreciated in value when you resell them.In the result the advantage of investing in gold and gaining profit is offset by the non-availability of Hall Mark guarantee for your gold jewelry. Therefore, it is always good and advisable to purchase hall mark assured or guaranteed jewelry.
2)Be familiar with the terms like Hall Mark, BIS,916,KDM etc prevailing in the gold market:-
Before investing in gold jewelry, you should get familiarized with the terms prevailing in the gold market.
i) Hall Mark denotes the assurance and guarantee for the quality as provided by the jewelry shops for the gold you purchase from them. It is always marked by a letter to denote the actual year of Hall Marking for the jewelry. For example, the letter ‘A’ denotes that your jewelry was Hall Marked in the year 2000, ‘B’ denotes the jewelry was Hall Marked in the year 2001 and ‘K’ denotes the year 2010 in which the jewelry was Hall Marked.
ii) BIS means Bureau of Indian Standards always marked by a triangle symbol.It certifies,supervise and controls the Hall Marking of the gold jewelry,besides helping to find out the spurious products through a process known as assaying in its approved centers.
iii)KDM actually denotes a metal known as Kadmium Monaxide used for connecting different components of a designing jewelry. Peoples are actually mistaken KDM for the quality of the jewelry.
iv)916 jewelry means that your jewelry contains 91.6 %of pure gold in your jewelry and the remaining 8.4 % is made up of the metals like copper and zinc to increase their strength and prevent rusting.
3)A Hall Mark jewelry will have five marks to ensure its quality:
A Hall mark jewelry will have five symbols.
The first one is a triangle symbol denoting that it is BIS certified.
The second one is to denote the Hall Mark by a letter like A to K,referring the year in which the jewelry was actually hall marked.
The third symbol like 916 actually denotes that the jewelry is made up of 22 carrot gold and if it is 750 it means that the jewelry is made up of 18 carrot gold; while the 916 refers to the superior quality of the gold jewelry, 750 refers to the inferior quality of the gold jewelry.In other words as the number increases, the quality of the gold jewelry also increases.
The fourth symbol refers to the identity of the jewelry mart from which the jewelry is purchased, normally containing initials like PD etc.
The fifth symbol is a logo for Hall Marking that indicates the process of Hall marking has been completed.
Thus a Hall Marked or a quality gold jewelry will always have five symbols mentioned above.If any gold jewelry does not have any one of those symbols, then it is not a Hall Mark jewelry and its quality is not assured. Therefore, while purchasing a Hall Mark jewelry, you should check up for the above mentioned five symbols with the help of a lens.
4) Be Careful while purchasing jewelry in pairs:
If you purchase a pair of gold bangles with Hall Marks, always check both of them for the Hall Mark symbols to ensure quality in both bangles.
5) Check for the actual carrot value before purchasing the gold jewelry:
In the jewelry mart there will be a special apparatus for checking up the carrot value of the jewelry you propose to purchase. In order to ensure the quality of your gold jewelry, you should check it up using the above said apparatus.
The above said tips must be scrupulously followed before purchasing gold jewelry to ensure their quality and safeguard your investment.