It’s essential to be well-prepared and cautious to protect your investment in gold. (Representative image)
Buying gold in India is a popular investment and cultural tradition. However, there are several common mistakes that people often make when buying gold.
Buying gold from a jeweller in India can be a significant financial investment, and it’s crucial to exercise caution to ensure you get the best value for your money. By avoiding common mistakes and asking relevant details from the seller, you can make a more informed and sound decision when buying gold from a jeweller. It’s essential to be well-prepared and cautious to protect your investment.
Here are some common questions to ask and mistakes to avoid when buying gold in India:
Not Understanding Carat System & Purity Of Gold: Understand the difference between 22 and 24 carat gold. 24 carat is pure gold, while 22 carat contains some alloy, making it more durable but slightly less pure.
The purity of gold is measured in carats. In India, generally 22 carat gold is the standard purity for jewellery. Make sure to check the purity of the gold before you buy it, and look for the BIS hallmark, which is a government-approved mark of quality. Ensure the jeweller provides you with a purity certificate or hallmark on the jewellery, which indicates its purity.
Buying Unbranded or Non-Hallmarked Jewellery: Branded jewellery and hallmarked pieces are generally more reliable in terms of quality and purity. Hallmarked jewellery is certified for its purity by an authorised agency. Always buy hallmarked gold jewellery to ensure its authenticity.
Not Considering Making Charges: When you buy gold jewellery, the price will include the cost of the gold as well as the making charges. The making charges are the cost of designing and crafting the jewellery. Make sure you understand the making charges before you buy, so that you don’t end up paying more than you expected.
Not Checking The Weight Of Gold: The weight of the gold is also important to consider, as it will affect the price. Make sure to weigh the gold yourself, or ask the jeweller to do it in front of you.
Not Buying From A Reputable Jeweller: There are many jewellers in India, so it’s important to choose one that is reputable. Do some research to find a jeweller that has a good reputation and that is known for selling high-quality gold jewellery.
Not Getting A Bill: Always get a receipt/bill when you buy gold jewellery. This will help you to prove that you own the jewellery in case of loss or theft.
Not Considering Buyback Policy: Some jewellers offer a buyback policy on gold jewellery. This means that you can sell the jewellery back to the jeweller at a later date for a certain price. If you are considering buying gold jewellery, it’s a good idea to check the buyback policy before you buy. However, it’s your choice to opt for it.
Rushing The Decision: Take your time when making a decision. Don’t feel pressured into buying on the spot. Research, compare prices from different jewellers, and make an informed choice.
Not Bargaining: Bargaining is a common practice in India, especially when buying jewellery. Don’t be afraid to negotiate the price with the jeweller, but do so politely and respectfully.
To avoid these mistakes, it’s essential to educate yourself about the gold market, conduct thorough research, and seek advice from trusted sources or financial advisors before making any significant gold purchases.
