Buying gold during the festive season is a long-standing tradition in many Indian homes. Gold symbolises prosperity, but it’s also an important financial investment. However, in the excitement of festive shopping, many buyers overlook the basics – purity, price, and paperwork. Here are five simple rules to help you buy gold wisely this season.
Buy Only from Trusted Sellers
Always purchase gold from a reputed jeweller or a BIS-certified store. Trusted brands follow clear purity standards and offer transparent billing. Large chains usually provide buyback or exchange options, which can be useful later.
Avoid paying in cash. Pay digitally and insist on a proper bill that includes details of purity, weight, and making charges. This documentation is your proof of ownership and will help if you want to sell or pledge the gold later.
Check for Hallmarking
Purity is the key factor that determines the value of gold. Look for the BIS hallmark, which is the official guarantee of purity. Every hallmarked item carries four signs – the BIS logo, karat value (like 22K or 18K), the jeweller’s identification number, and the year of hallmarking.
Gold jewellery is usually 22K (91.6 per cent pure), while coins and bars are often 24K (99.9 per cent pure). Avoid unverified sellers offering large discounts, as impure gold may look the same but loses value when tested.
Understand the Price You’re Paying
Gold prices change daily based on global trends and the rupee’s exchange rate. Jewellers usually display the per-gram price of 24K gold, but the final cost depends on purity and making charges.
For example, if 24K gold costs Rs 6,000 per gram, a 10-gram 22K piece will cost Rs 54,960. Add 8–12 per cent making charges and your final price could cross Rs 59,000. Handmade jewellery usually costs more, while coins and bars have lower making charges. Comparing prices at multiple jewellers can help you save a few thousand rupees.
Know the Buyback and Exchange Terms
Gold is one of the few assets you can sell or exchange easily, but jewellers have different policies. Some deduct 5–10 per cent when you sell back your gold, while others only accept hallmarked items.
Before buying, ask about their buyback and exchange rules. Choose jewellers who offer transparent and customer-friendly terms. This ensures that your gold remains valuable even if you wish to upgrade or sell it later.
Keep Your Bills and Certificates Safe
Your invoice and hallmark certificate are as valuable as the gold itself. They confirm the purity, price, and ownership of your purchase. Keep these documents safely, especially if you plan to use your gold for loans, resale, or insurance. Even small coins and pendants should come with a certificate of authenticity.
Buying gold can be both emotional and practical. But whether you’re buying it as an investment or as a gift, the basics remain the same: verify purity, compare prices, understand the seller’s policies, and keep your paperwork in order. When bought wisely, gold not only adds shine to your celebrations but also strength to your finances.
(The author is the CEO at BankBazaar.com. This article has been published as part of a special arrangement with BankBazaar)
