How to Buy Hallmarked Gold and Things to Keep in Mind While Buying Gold?

What is Hallmarking?

The accurate determination and official recording of the proportionate content of precious metal in precious metal articles is known as hallmarking. Thus, hallmarks are official marks that are used in many countries to guarantee the purity or fineness of precious metal articles. The primary goals of the Hallmarking Scheme are to protect the public from adulteration and to obligate manufacturers to maintain legal fineness standards. At the moment, two precious metals, gold and silver, have been brought under the purview of Hallmarking in India.

Methods for identifying hallmark gold jewellery

There are numerous ways to verify the authenticity of the hallmark gold jewellery you intend to purchase. Here are some precautions you can take to avoid being duped. For your gold item to be hallmarked, the inner rim should typically include the following:

• The BIS Logo
• Purity in Karat and Fineness
• Assaying Centre Identification Mark
• Logo / Code of The Jeweller

Gold hallmarking

Regardless of purity, gold jewellery buyers should keep in mind that gold jewellery and artefacts must be hallmarked beginning June 1, 2022. As a result, if you are purchasing gold jewellery now, the jeweller will not sell it to you unless it is hallmarked.

Hallmarked gold signs

Hallmarked gold will have a BIS Mark, purity and fineness grade, and a 6-digit alphanumeric code beginning July 1, 2021. The Hallmark Unique Identification (HUID) number is another name for the 6-digit alphanumeric code. This number is unique to each piece of gold jewellery. Customers can use the BIS Care App to verify their HUID number.

Purity standard

Currently, the BIS allows gold hallmarking in only six categories: 14K, 18K, 20K, 22K, 23K, and 24K. As an example, if a piece of gold jewellery bears the stamp 18K750, it means that the piece is 75% gold.

Important factors to consider when purchasing gold jewellery

Check the Price per gram

Remember to check the per gram price of gold at the jewellers before making a purchase. The method used to arrive at a specific price per gram varies from city to city and from place to place, and is usually set by a gold jewellers' association. Typically, large jewellery stores have a set price and sell gold at the same rate. Checking the gold price per gramme in different shops or logging on to a reliable site that does the comparison for you is one way to ensure you get the best at the best price.

Buyback Terms

It is important to determine how much the jeweller will be willing to offer you in the event that you return the jewellery at a later date or wish to exchange it for a more contemporary design in the near future. Most reputable top jewellers promise to buy back the gold at the current market rate if you decide to go this route later. This means that, while you may not be fully reimbursed for the waste you paid for or the majority of the gold production costs, you will have assurance and compensation to fall back on if you need to sell.

Time of Purchase

The usual pattern shows an increase in purchases during specific occasions, which invariably drives up all gold prices. For example, during Diwali, people flock to jewellery stores to purchase gold ornaments and coins. Purchase gold jewellery during the offseason when prices are lower and there are numerous discounts available.

Check the quantity

Check the quantity of gold you are purchasing. Purchasing gold is complicated because it necessitates the payment of wastage (which usually varies from individual piece to piece and ornament). The best way to avoid confusion in these situations is to ask or find out how much gold you will be purchasing.

Keep the bill of purchase

Make sure you get a bill of purchase, which is a necessary record to prove you bought the jewellery. The jewellers may require you to pay GST and provide your PAN number. This may appear to be a hassle, but your bill contains every important detail about your gold purchase and ensures you have something to fall back on if things go wrong and you are scammed. It is a document that holds the jeweller accountable for the credibility and quality of your purchase and should be kept safe. It can also be used as evidence in a consumer court if you are compelled to do so.