PURCHASE OF GOLD--- SOME USEFUL TIPS

INTRODUCTION:

Indians like gold very much. There is no second opinion on this matter. Indian ladies will get fascinated with purchase of gold. Gold jewelry is very much wanted by ladies. Gold is a soft material. To make it hard and ductile, some other metals like copper, silver or nickel will be mixed in gold. The purity of gold is measured by carats. 24 carat gold is 100% pure.  Different countries use gold of different purity. In India we prefer 22 carat gold. The purity of this gold is about 91.6%.Some countries use 75% gold and some 50% gold.

Purchase of gold serves two purposes.  It is an investment and it is a fashion accessory. Gold is a symbol of pride and prosperity. Gold can be liquidated anywhere in the world. Many of us will purchase gold ornaments for various purposes and occasions.

Some of the tips to be followed for purchase of gold jewelry are mentioned below.

Purity of Gold :

Before you make a purchase, ensure the quality of gold. The ornament you are going to purchase should have hallmarking. The Bureau of Indian Standards is the organization responsible to maintain the quality of gold. They have licensed some laboratories to test and hallmark the ornament. You ensure this marking you are going to purchase. It is better to go to standard jewelers only to purchase the gold. In some of the shops you will find some testing equipment for testing, you can witness testing there. In addition to hallmarking some shops will have 916 k marking also. Ensure this before you purchase.

Don’t hesitate to bargain:

The rate of gold is standard. It will be changing on day to day basis. But all shops will have the same rate on the particular day.  So you can’t bargain on the price of gold. But jewelers add wastage and making charges.  Making charges will be generally about 25 to 30 rupees per gram. Wastage will be around 8 to 10%. Many say that there are no making charges but they will charge 13 to 18% on the cost of gold as wastage. Here you have scope to bargain. Basing on the value of the ornament they can reduce up to  2 -3 % wastage. But those people will not lose any gold; they know the method of recovery. But it is a profit for them. So don’t hesitate to bargain

Don’t purchase articles with precious stones:

 Gold will be sold on weight basis. The ornament you have selected will be weighed and charged as per the weight. If you select an article with precious stones like diamonds and emeralds, their weight will also contribute for the cost. Indirectly it implies that you are paying rate of gold to these stones also. Try to keep them as minimum as possible, so that your loss will be minimum there. Some shops they remove the weight of these items and charge separately for that. But there is no way to know the correct weight of these stones. The sellers charge more wastage for ornaments with stones.

In addition to the above three tips, you ensure correct invoice with a guarantee card for the item. Don’t exchange gold articles very frequently. You will lose on wastage and making charges. Don’t go for unknown shops.

Conclusion:

One has to follow the above steps when they go for gold purchase. Main thrust is to be given to purity of gold and making and wastage charges. Ensure hall marking.