By OneCard | November 08, 2023
In India, our love for gold extends to purposes beyond investing. Be it jewellery, coins, or bars, we love to buy gold on big festive days such as Dhanteras, Gudi Padwa, Aksaya Tritiya, or Dussehra. Given the amount of money involved in buying even small quantities of gold, it is wise to be cautious during the entire buying process. So, whether you are new to buying gold or simply trying to brush up your knowledge before buying gold, this blog is for you.
Whether you are buying jewellery for yourself or for your loved ones, things can get really exciting. There are so many beautiful designs out there that we can’t resist falling in love. However, to avoid any post purchase regret, look out for quality markings on the gold you are buying. A hallmark is one such indicator to find. It can be easily located on any piece of gold you buy from a reputed seller. For example, in the case of a ring, it can be found on the inside of the band, and in the case of a necklace, it can be found near the clasp. As per the latest guidelines, the hallmark should have the BIS (Bureau of Indian Standards) logo, purity in karats, and a six-digit alphanumeric code, which is the Hallmark Unique Identification (HUID) number.
Enquire about the making charges for the specific type of jewellery you are looking to buy. For example, the making charges for bangles can be lower than those for more intricate jewellery like earrings. Confirming the charges beforehand can help you avoid any last minute surprises. Also, comparing the making charges across different sellers and asking for festive discounts can help you save more on the overall cost of your jewellery.
Do ask about the applicable policies if you want to exchange your old jewellery or if you plan to purchase smaller amounts of gold to buy something bigger in the future. Specifically, understand if there are any terms, conditions, or charges that will be applied when a jeweller buys back the gold you already have.
For example, if you are planning to buy gold with cash, it is important to be aware of the cash limit on buying gold. As per the last update, the limit for cash transactions is Rs. 2 lakhs if you do not wish to share your PAN details while making the purchase. Also, carefully check the GST charges applied in the invoice. While the standard GST rate on gold is 3%, some jewellers might levy an extra 5% on the making charges if the goldsmith is registered under GST.
Digital gold is gaining popularity, especially among younger people. So, if you are looking to buy gold as an investment, it can be a wise decision to explore options such as Digital Gold, Gold Exchange Traded Funds (ETFs), Gold Mutual Funds, Gold Futures Contracts, Sovereign Gold Bonds (SGBs), etc. There are many reasons why alternative forms are becoming popular. One of the main reasons is that you don’t need to stress about storing it safely. Some options can also give you an advantage in terms of GST. For example, if you buy SGBs, you will not have to pay GST at the time of their purchase.
We hope that the tips shared above will help you buy gold more confidently the next time you go shopping for it. And if you are a OneCard user, don’t forget to check out exclusive offers on jewellery by visiting the Offers section in the app. As of November 2023, you can get up to Rs. 1500 value back* when you buy gold jewellery from top brands such as Tanishq, Caratlane, Malabar, Kalyan, and more.
*Offers vary from time to time. Please refer to the OneCard app for the latest information and ongoing offers.
**Disclaimer: The information provided in this webpage does not, and is not intended to, constitute any kind of advice; instead, all the information available here is for general informational purposes only. FPL Technologies Private Limited and the author shall not be responsible for any direct/indirect/damages/loss incurred by the reader for making any decision based on the contents and information. Please consult your advisor before making any decision.