By Kaushlendra Sinha
The excitement of the hustle and bustle of Diwali shopping is palpable this festive season, but when it comes to your expensive gold purchases, don’t get too carried away by your emotions, chasing the allure of the yellow metal without protecting your investment and interest in the precious metal. These five essential rules will enable you to buy gold safely and responsibly from a trusted retailer.
Rule 1: Time Your Purchase Smartly
Dhanteras is ‘the’ big day for gold shopping, but the last-minute rush usually spikes prices just before the occasion. If you want to avoid inflated prices and long queues at retail outlets, pre book your jewellery and ask for the delivery on Dhanteras day.
For coins or bars, monitor MCX (Multi Commodity Exchange) spot prices. You can also wait out the rush and look for post-festival deals or spread purchases to average costs.
Rule 2: Mandate Certification, Transparency, and Trust
Trust and transparency are key requirements to make a valid gold purchase and that can only come about if your retailer is verified and certified. Only shop at a retail outlet that has the Bureau of Indian Standards (BIS) hallmark and offers a six-digit Hallmark Unique Identification (HUID) number on your jewellery, confirming purity.
Don’t hesitate to demand full documentation: a detailed invoice, guarantee card, and assay report. The invoice should clearly list the gold rate, making charges, wastage, and taxes helping you compare retailers.
Jewellers who display their certifications and hallmarking licenses, and offer transparent return or buyback policies, are your best bet. Before leaving, ensure each item bears a visible hallmark stamp, crucial for resale and insurance. If unsure, ask for proof of testing at a nationally approved laboratory.
Rule 3: Choose the Right Retailer
One of the biggest concerns for gold buyers today is finding a retailer who is trustworthy, responsible and committed to ethical sourcing and sustainable practices.
Unfortunately, many uninformed consumers end up spending their hard-earned money at outlets that lack credibility risking both immediate value and long-term returns.
To protect your investment, always choose an accredited retailer. Many retailers are now part of a movement to align themselves with evolving industry frameworks created by self-regulatory bodies for the gold industry and by the gold industry. They promote transparency and ethical conduct across the entire value chain. Ask tough questions about the origin of the gold, where it’s sourced from, does the retailer follow fair-trade principles?
Rule 4: Buy with Purpose
When you’ve decided to buy gold, you should know your intent clearly. Are you buying it to wear as an adornment, to gift to someone or as an investment? Each goal warrants a different approach. Understand the value of each of these purchases. For long-term investment, coins and bars in 24K gold offer better resale value and minimal making charges.
An emotional jewellery purchase often includes design and craftsmanship costs that may not hold value over time. Digital gold and gold exchange-traded funds (ETFs) are popular among younger investors for their transparency, liquidity and ease of access. Gold can also be used as a collateral for personal or business loans.
Rule 5: Understand How Gold Pricing Works
Gold may be timeless, but its pricing is layered. A responsible buyer knows that purity, alloy composition and craftsmanship all influence the final cost and future value.
Understanding these elements helps you make a purchase that’s both beautiful and financially sound. 18K gold, with 75% purity, is ideal for contemporary, lightweight designs. It’s durable and affordable, making it popular for daily wear. 22K gold at 91.6 per cent purity, is the traditional choice for weddings and festive occasions, offering a balance between strength and value. 24K gold, at 99.9 per cent purity, is too soft for jewellery but perfect for coins, bars and long-term investment.
The alloy mix affects not just appearance and durability, but also resale value. The higher the cartage, the higher the return. Keep in mind that design complexity and brand reputation also significantly impact making charges adding another layer of pricing.
This festive season, let your gold purchase reflect both tradition and thoughtful intent. Responsible buying is no longer optional but essential. The new rules are simple yet powerful so align your choices with your long-term emotional and financial goals.
(The author is CEO, Indian Association for Gold Excellence and Standards)
[Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP News Network Pvt Ltd.]
