The Indian gold market is amongst the highest grossing ones. The industry witnesses a surge in purchase, especially when it comes to festivities and marriage. As the wedding season sets in, demand for gold is on the rise.
However, many of us, when visiting the local jeweler shops in our areas, do not bargain much. It is important to understand that in this scenario, the price varies from jeweler to jeweler due to many factors. The final amount includes the price of gold, gems, making charges and more. Since the Indian jewelry market lacks a standard billing pattern, the prices differ.
Various names in the gold industry, such as Kalyan Jewelers, Shubh Jewelers by Rajesh Exports, Tanishq Jewelers, Malabar Gold and Diamonds, are some of the key companies that are helping the Indian market expand.
Following are some of the aspects you should know when buying gold.
- The calculation that goes behind the cost of gold you buy
A standard formula which defines the cost of the gold jewelry is:
Final price of the jewelry = Price of 22 KT gold X (weight in grams) + Making charges + GST at 3 percent on (price of jewelry + making charges)With this formula in place, it is easy to understand if the jeweler is charging you the right amount. It is crucial to understand that the big and established names like Malabar, Rajesh Exports and many more are amongst top jewellers who control India’s gold and provide gold at the same rate throughout their stores.
- Purity of gold
Purity of gold is measured in carats, with 24 carat being the purest form. However, 24 carat gold is malleable and cannot be used to make jewelry. Instead, 22 carat gold, which constitutes of 91.6 per cent gold, along with metals like zinc, silver, cadmium, etc., to strengthen it, is used.
- Studded jewelry
When you buy jewelry studded with stones, make sure you ask the jeweler to check the weight of gold separately. Many a times, the jeweler weighs the entire piece and charges the customer a much higher price. Initially, you might not be able to gauge the damage done, but when you sell it, the real picture comes to life. The money you will receive in exchange will nowhere be equal to what you invested.It is both the amount of gold and the gemstones used that determine the price of the jewelry. Also, the gold rate fluctuates everyday according to the demand and supply in the market.
- BIS Standard Hallmark
Hallmark is in itself a certificate of purity for gold jewelry. The Bureau of Indian Standards (BIS) gives the hallmark certification, and you can use this information to identify if the jewelry you are buying is original or not.The jewelry by various major chains in India such as Shubh Jewelers, which has more than 80 stores in Bangalore; Kalyan Jewelers, Tanishq Jewelry is hallmarked and thus, you can rely on the pieces that you purchase from them.
- Making charges
The intricacy of a piece defines the making charges. The more the number of cuts, and better the finish, the higher will be the making charges.
However, there are various jewelers who do not incorporate the making charges. For instance, Shubh Jewelers, the retail chain of Rajesh Exports, headed by CEO Rajesh Mehta & Rajesh Exports MD, Prashant Mehta, does not include making charges in their jewelry.
With the details in place, you can use it to make sure you do not fall for fake jewelry and never agree to pay more than the value it holds.