Diwali is one of the most auspicious times in India, and buying gold is a popular tradition. However, with the festive rush, many people end up buying illegal or impure gold that could turn out to be a waste of money. To help you avoid such pitfalls, here are some gold buying tips you should keep in mind this Diwali.
1. Know the Hallmarking Standard
· Hallmarking is the certification that guarantees the purity of gold. Always look for the Hallmark symbol, which indicates that the gold has been tested and certified by a government-approved agency.
· The Hallmark should display the purity (e.g., 22K, 24K) and a logo of the Bureau of indian Standards (BIS).
· If the jewelry or gold item doesn't have the Hallmark, there's a strong chance it could be impure or unverified gold.
2. Check the BIS (Bureau of indian Standards) Certification
· A BIS-certified seller ensures the gold you buy meets the required standards of purity.
· Always ask for the BIS certificate when purchasing gold. This certifies that the item adheres to established purity and quality guidelines.
· Avoid unbranded gold or items without clear certification, as they may not meet legal standards and could be a fraudulent purchase.
3. Be Wary of “Too Good to Be True” Offers
· While discounts and deals are tempting, extremely low prices should raise suspicion.
· Illegal or unregulated gold dealers may offer prices well below the market rate to attract unsuspecting buyers.
· Always compare prices from multiple reliable and certified sources before making a purchase.
4. Beware of Black Market Gold
· Black market gold is often smuggled or traded illegally. This gold is typically unmarked and may not meet purity standards.
· It is illegal to buy gold without receipts or from unregistered sellers. Always ensure that you get a valid bill that includes details about the gold's purity, weight, and price.
· Avoid purchasing gold from street vendors or unauthorized shops, as they may sell smuggled or impure gold.
5. Verify the Weight and Purity Before Finalizing the Purchase
· Ask for a purity test if you have any doubts. Many trusted jewelers provide testing services in front of you.
· For gold coins or bars, ensure they come with an authentic certificate of authenticity.
· Use a gold testing kit (available online or at jewelry shops) to verify purity if you’re uncertain. This can help you avoid buying gold of lower quality.
6. Understand the gold Tax Implications
· The government imposes a GST (Goods and services Tax) on gold purchases, so make sure the transaction is documented with a GST-compliant bill.
· Unaccounted gold transactions may be indicative of illegal gold. Ensure that you’re buying from a reputable, tax-compliant dealer.
7. Research the Seller’s Reputation
· Always buy gold from trusted, established jewelers or banks. Look for online reviews, and ask for recommendations from family or friends.
· Verify the seller’s reputation on online platforms or through official channels like the Gem & Jewellery Export Promotion Council (GJEPC).
· Stay away from unverified sources to avoid falling into the trap of fraudulent gold dealers.
Final Thoughts: Don’t Compromise on Quality This Diwali
This Diwali, while it’s tempting to buy gold as an investment or for gifting purposes, always ensure that you’re getting the best value for your money. Stick to certified, trusted sources, check for Hallmarks, and verify purity and weight. Remember, buying legal and pure gold is a long-term investment, while purchasing substandard or illegal gold can lead to financial loss.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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