Indians eagerly waits for Akshaya Tritiya, an auspicious occasion on which people purchase gold. There is a great belief that if you will buy gold on this day then god will award you with prosperity and wealth. The yellow metal turns essentially into an attraction on such occasions like Diwali or even Raksha Bandhan. Indians always find a way to celebrate festivals with a touch of gold.
One such festival is Akshaya Tritiya and this fest is right around the corner. This year people from different regions in India will be celebrating Akshaya Tritiya on April 18. During this period, demand for gold particularly physical gold in the form of jewellery, bars, and coins usually witnesses a rise.
Jewellers usually see a massive rise in demand for yellow metal on this day every year either in the form of jewellery or coins. However, there is a chance that you may be cheated. Hence, it is always a smart move to keep a list of factors in mind while purchasing gold to avoid being cheated.
1. Know the Purity of Gold:
- Purity of gold is denoted in karats – with 24 karat gold being 99.9% pure and 22 karat gold is 92% pure.
- Each karat of gold is equivalent to 4.2% pure gold, which means that 14 and 18 karat contains only 58.33% and 75% pure gold, respectively.
- 24 karat gold is not suited to make jewellery, which is why jewellers use either 14, 18 or 22 karat gold.
2. Making charges:
- Current gold rates usually include making charges - so it is important to insist on fixed making charges otherwise one can be fooled by jewellers in paying higher making charges.
- Gold jewellery prices can be calculated by Gold price per gm)* (Weight in gm) + (Making charges)*(Weight in gm) + GST.
3. Man-made versus Machine made ornaments:
- One should discuss the making charges with the jewellers and as these charges on machine-made artifacts are lower than charges on man-made artifacts - making them cheaper.
4. Check the weight:
- In India, most jewellery is sold by weight. Heavier pieces usually cost more.
- Precious stones like diamond and emerald are often added to gold jewellery, making them heavier in the process.
5. Buy back:
- In case if you want to exchange your old jeweller for a new one, there are buyback options available in many jewellery shops
- While designs and trends can change, the value of gold remains same and discussing buybacks during a purchase could benefit one.
6. Jewellery store:
- There are millions of jewellery stores in India.
- Purchasing gold jewellery from small stores could be a risk as they might pass of impure gold as pure gold or could sell stolen gold artifacts.
- Thus, buying gold from a reputed jeweller erases the amount of risk as it comes with a guarantee.
7. Mark of Bureau of Indian Standards:
- Buy gold which are hallmarked by Bureau of Indian Standards (BIS).
- The BIS Hallmarking Scheme has been aligned with International criteria on hallmarking (Vienna Convention 1972). As per this scheme, the licence is granted to the jewellers by BIS under Hallmarking Scheme.
- To check the jewellery stores which are hallmarked by BIS. Click Here
Last year, gold sales went by as much as 30.5%, compared to the trend seen in 2016. To put this number into perspective, gold sales have hit almost 23.5 tonnes last year compared to the 18 tonnes sold in May of 2016.