Are You Making These 6 Mistakes When Buying Gold?

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Purchase of Gold jewellery requires a lot of precaution, like every other asset purchase. Things have improved dramatically in the last few years with hi-tech equipment to check quality, fineness and quality checks and controls at every step.

However, you still need to do your utmost, before you purchase gold jewellery. Here are 6 steps that would prevent you from getting fooled when buying gold jewellery.

Melt only if necessary

One of the biggest mistakes individuals make is to melt existing jewellery and buy new one. You have to be careful of being told that the jewellery is of lower purity and lower grammage that you could get after melting.

You must ask, enquire and check before melting itself. This is one area that individuals lose a lot of money.

Rates vary even within the area

It is important to check gold rates across shops, before you buy. Prices may vary across locations and they definitely vary during the day.

Check gold rates in Indian cities here

Ensuring purity and quality

The government has identified BIS as the sole agency for hallmarking scheme and license is granted to jewellers under this scheme. BIS certified jewellers get their jewellery hallmarked in any of these BIS recognized or hallmarking centres.

This will ensure quality and guarantee for purity.

Invoice is a must

Always insist on a retail invoice in which the making charges, actual price of gold on that day and carat of gold Jewellery and BIS hallmarking license no. are clearly mentioned.

This would make it easier to sell or exchange gold even many years down the line.

Take a look on the kind of gold

There are many individuals who have allergy to white gold. In case you are allergic to white gold, do not buy the same. This is why we have said, ask and preserve the invoice, just in case, you want to return the same.

Jewellery is not a good investment

Jewellery entails a lot of making charges. When you sell the same, you do not get back your making charges back. So, if you want to invest, buy gold bars and coins or still better, buy gold ETFs.

Jewellery is a bad investment.

Read more about: gold
Story first published: Saturday, May 14, 2016, 7:55 [IST]
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