Dhanteras 2024: Buying gold? Don't fall for these common traps

Dhanteras 2024: If you're looking to invest in gold or buy jewellery for yourself or a family member, Dhanteras is a cherished occasion rooted in tradition. However, amid the festive excitement, it’s easy to fall into traps that lead to low-quality or impure purchases. Here’s what to keep in mind for a smart investment.

 

What to check before you buy

First, always check the purity of the gold you’re buying. Look for the Bureau of Indian Standards (BIS) hallmark on each piece, which indicates certified purity. The hallmark also provides details on the jeweller and the year of hallmarking.

Each hallmark symbol denotes caratage, indicated by a "K" that reflects the purity percentage. For example, 22kt gold, often stamped as "916," contains 91.6% pure gold.

Gold jewellery is available in various forms—plain, stone-studded, or different hues like white and rose gold. Each has varying purities; for instance, 18kt gold contains 75% pure gold.

Once you’re sure of the purity, compare the price to ensure it aligns with current market rates. Gold prices fluctuate daily, and reputable jewellery stores display daily rates. Cross-checking rates helps you secure a fair deal. Also, try negotiating the making charges, which typically add to the cost of gold jewellery.

 

Common pitfalls to avoid

Stone-studded jewellery

If you’re buying gold mainly as an investment, be cautious with stone-studded pieces. These may have higher making charges, and their intricate designs can make purity assessment challenging.

Non-BIS hallmarked stores

Although there are over 13,700 BIS-hallmarked showrooms and 435 assaying centres in India, rural areas might lack BIS options. Buying from a reputable, BIS-hallmarked jeweller ensures gold purity and quality, so avoid stores offering unusually low prices without hallmark certification.

Selling gold to other jewellers

When it comes to reselling, it’s better to go back to the original jeweller. Most offer a buy-back policy with full returns on net gold value. Selling elsewhere might lead to deductions on making charges, reducing your returns.

Finally, always insist on a bill for your purchase. This safeguards you with a record of the transaction, taxes, and details, protecting you from complications if you choose to resell or exchange in the future.

By following these dos and don’ts, you’ll not only secure a valuable asset but also enjoy peace of mind this Dhanteras.