Beware of Cheaper Deals! Check These 7 Essential Things Before Purchasing Gold to Avoid Fraud
_624695833.jpg)
As gold prices witness continuous fluctuations and a downward trend creates a buying frenzy in the bullion market ahead of the festive season, eager shoppers are rushing to purchase yellow metal under the impression of getting a great bargain. However, buying gold in haste without verifying critical parameters can lead to significant financial loss rather than savings. Driven by global economic instabilities and international market shifts, making wise investment and purchasing choices is more critical than ever. If you are planning to buy physical or digital gold this festive season, checking these seven essential rules can save you from being cheated in the pursuit of cheapness.
1. Never Buy Gold Without Checking the BIS Hallmark and HUID Number
When purchasing gold jewelry or coins, never rely solely on the jeweler's verbal assurances. Always check for the mandatory BIS hallmark. Genuine certified gold features the Bureau of Indian Standards (BIS) logo along with a unique 6-digit Hallmark Unique Identification (HUID) number, which ensures the metal has been officially tested and verified for quality.
2. Understand the Mathematics of Carats and Purity Markings
The purity of gold is measured in carats, which directly determines its market value and price. Always look closely at the purity numbers stamped on the jewelry: 24-carat gold is stamped with 999 indicating 99.9% purity, 22-carat gold carries the 916 hallmark indicating 91.6% purity, and 18-carat gold is marked with 750 signifying 75% purity. Keep in mind that higher carats mean greater purity and softness.
3. Verify Authenticity Instantly Using the Official BIS Care App
In the digital era, consumers no longer need to blindly trust shopkeepers. You can easily verify the authenticity of your gold ornament right from your smartphone. Download the official BIS Care App, enter the 6-digit HUID number printed on the jewelry, and instantly access complete details regarding its purity, registration, and hallmarking date.
4. Insist on a GST-Compliant Tax Invoice and Detailed Bill
Always demand a proper, computer-generated tax invoice when buying gold. Ensure the bill explicitly itemizes the exact weight of the gold, its carat purity, the HUID number, and the applicable making charges. Consumers should also remember that a 3% Goods and Services Tax (GST) is levied on the cost of gold, while a 5% GST applies separately to making charges.
5. Know Your Legal Right to BIS-Accredited Lab Testing
If you have any lingering doubts regarding the purity of gold purchased from a jeweler, you have the legal right to get it tested. You can get your gold verified at any BIS-recognized Assaying and Hallmarking Centre for a nominal fee of just ₹200. Under regulatory guidelines, if the gold fails the purity test, the jeweler is legally mandated to compensate the buyer.
6. Consider Paper Gold and Mutual Funds for Safe Investment
If your primary objective for purchasing gold is investment rather than wearing it as jewelry, physical gold may not be your best choice. Opting for Gold ETFs, Sovereign Gold Bonds (SGBs), or Gold Mutual Funds eliminates the risks of theft, storage hassles, security costs, and purity concerns altogether while offering seamless liquidity.
7. Beware of the 'Heavy Discount on Making Charges' Trap
Capitalizing on festive shopping rushes, many retail jewelers lure customers with flashy advertisements offering steep discounts on making charges. However, such shops often offset these discounts by inflating the baseline gold rate or weight, ultimately resulting in hidden costs for the buyer. Always cross-verify the prevailing market rate of gold before finalizing your purchase.
_1135825975_351x234.jpg)
_428746559_351x234.jpg)
_1346106938_351x234.jpg)
_318247764_351x234.jpg)
_593034890_351x234.jpg)
