What do you need to know before buying gold in India?

Indians buy gold throughout the year as jewellery and investment. However, the gold prices in India keep fluctuating. For example. the gold price in India today in Vijayawada will differ from yesterday’s price. Also, there is a variation of gold prices between different cities of India because of hauling rates. There are few other factors also that you should consider before buying gold in India. Some of those factors are:

1.Purity of Gold:

There are different levels of purity of gold available in the market. The purity level of gold is measured in carats. The following carats of gold are available in India:

• 24 Carats – 99.9% pure
• 22 Carats – 92% pure
• 18 Carats – 75% pure
• 14 Carats – 58.3% pure

Although the purest form is 24 Karats, it is not considered ideal for jewellery making due to its fluidity. Your jewellery is most crafted of 22 Carats or 18 Carats. Before you buy gold from any dealer, make sure of the purity level of your gold.

2.Hallmarked Gold:

If you are buying gold, make sure that it is hallmarked. If your piece of jewellery is hallmarked, it complies with the standards issued by the Bureau of Indian Standards (BIS). Therefore, you must check for the BIS mark on your jewellery along with the jeweller’s identification number.

3.Price of Gold:

The price of gold keeps fluctuating every day. If you are planning to buy gold, you can watch the trends of the market and plan your purchase accordingly. If gold jewellery price today is less than the past few days, you may consider purchasing it. However, if the market trend is going downwards, you can wait for a few more days to get a better price. You need to follow the gold price in India today – Vijayawada for a few days to check the market trend.

4.Jewellery Making Charges:

When you are buying a piece of gold jewellery, you are paying for the gold as well as the making charges. The price of gold charged by the jeweller would be the gold rate in Vijayawada. However, you can always bargain on the making charges to reduce your cost. The making charges depend on the craftsmanship and whether it is man-made or machine-made.

5.Buy Back:

Most jewellers offer to buy back terms to their customers. You can also check these terms while purchasing jewellery from your jeweller. You are not going to get the making and administrative charges included in your bill. But you can get the value of your gold if you sell it back later to your jeweller.

6.Invoice:

You need to have the invoice of your purchase for ensuring the credibility of your transaction. Also, it can help you in the future if you decide to sell your gold.

7.Weight:

Before paying for your purchase, do get your jewellery weighed and checked for purity to avoid any fraud. Your cost is determined by the weight of the gold. Therefore, it is important to get it checked before making the payment.

You can be a smart gold buyers if you keep the above factors in mind before buying gold in India. Although the most important factor is gold price in India you must mind about the other factors as well.