Things must know before buying Gold on this Diwali / Tihar: – Gold is one of the favorite things of women who buy them with a lot of enthusiasm. Whether it is a small path or a mangal sutra. In any case, women often make shopping lists during festivals. And when it comes to big festivals such as Diwali (Tihar), it is reasonable to have the gold jewelry in this list. And why not? After all, these ornaments only increase their beauty and make them feel feminine.
Jewelry is very dear to women, so they take a lot of time in their shopping. But at times when buying gold ornaments, they make some mistakes and is cheated by the jewelers. In the festivals and the wedding season, shopkeepers/jewelers often cheat in jewelry. In the time of overcrowding and lack.of gold, buyers can not even pay attention to the reasons the jewelers cheat on them. So some important things are listed below that you need to take care of before going to buy jewelry. So that you can avoid yourself and your family from fraud in jewelry.
Buying Gold In Diwali? 35 Must Know Things Before Buying Gold in This Diwali / Tihar 2018
1. Amount of gold:
Before buying gold, you have to determine and decide how much gold you want to buy and in what form you want to buy the gold. Gold is available in the form of jewelry, in the form of ornaments, in the form of coins, or in the form of gold biscuits. So you first have to make up your mind what type of gold you want to buy. And how much you want to buy gold. Gold is measured in karat or in kilograms. The quality of gold is based on the type of gold you want to buy. Jewelry and ornaments are sold in a karat.
Often jewelers try to sell the jewelry of 24 karat gold. But the jewelry is not made from 24 karat gold because the 24 karat gold is the purest form of gold. And ornaments made from 24 karat gold can easily break because of its purest form. So ornaments and jewelry are made from the 22 karat gold. If any shopkeeper is forcing you to buy the 24 karat jewelry, you have to understand that he is trying to cheat you. Buying gold coins and biscuits are easier than the jewelry. They can be bought in 24 karats the purest form of gold.
2. Purpose of buying gold:
While buying gold, you need to first determine for what purpose you’re buying gold. Whether you’re investing money on gold or you want to purchase the Jewellery. If you want to invest in gold for your future purpose, then you can buy the gold coins or biscuit. This will give you money return with less deduction in making charges and waste charges. But if you’re buying the gold for your own personal use, you can then the ornaments with fewer designs and stones.
3. Information about gold:
After determining how much hold and in what form you want to buy. You then have to gather all the information about gold. It’s a must that you know all about the hold, it’s purity, how to differentiate between the real and fake gold. And the most important you have to know the correct market price of gold. Find out the price of gold in your city before shopping. Visit as many shops you can in your city.
Find out the correct market price. Find out which jewelry shop is selling in which rate. If some shop is selling the hold cheaper than the other shop. It doesn’t mean it’s taking care of the customer. It may mean it’s selling the impure or mixed gold and not the pure one. If some shop is more expensive than other, it also doesn’t mean it’s selling the pure gold. So, you have to consider all these points and visit as many shops you can before buying any form of gold.
4. Jewelry shop:
After knowing all about gold. You then have to decide the shop from where you want to buy the gold. You can probably find a place where gold is sold at the right prices. Therefore, to buy gold at the right price, go to a place where there is so many competition among the gold sellers so that when you go to them, they will not be able to leave you as a customer and they will try to sell gold at the right price.
Check out all the designs of the jewelry. Do not be lazy. Do not come in the sweet words of the shopkeeper. You can check the rate and the designs online too. Choose the thing you like. And of course, if you already have a jeweler from which you always buy jewelry then go to him and take your favorite jewelry. Just remember the jewelry has to be trustworthy. Don’t forget to take the bill or the receipt. It will be easier later if you want to sell the jewelry or to mortgage it.
5. Cost of gold:
After liking gold jewelry, try calculating the price. Watch the cost of the jewelry, the making charge and the weight of the jewelry etc. And of course, make sure to wear the jewelry when buying it. Because the price is decided according to the weight of the jewelry. Carat Gold means 1/24 Percent Gold. If your jewelry is 22 carats then divide 22 by 24 and multiply it by 100. The price will be determined according to the outcome in the conclusions.
Depending upon the calculation of the shopkeeper and paying whatever he asks for is not wise while buying the gold. You need to know the above method by which you can calculate the exact cost of the gold you’re buying. Show wisdom and again do not be lazy. You have to be very careful with the buying and paying the price. After all, it’s your hard earned money that you’re going to spend.
Hallmark is the official sign or seal imposed on precious metals which are used to prove its quality. Hallmarking is arranged to prevent the adulteration of jewelry. This system is very old. The arrangement of hallmarking in different countries is also different. Hallmark’s jewelry consists of international standard. The hallmarking help in identification of the quality of platinum, gold, silver and diamond jewelry. Hallmark is a government guarantee that the gold is pure and is good to buy or to sell.
The government has appointed certain laboratories where the hold is checked for its quality, quantity, and purity. The government has formed the rule of marking the gold of 24 karats, 22 karats, 18 karats and 14 karats. Different types of marks are placed on the gold to identify the purity of gold and its quality. And you should buy gold by looking at that Hallmark. First of all look at Hallmark on jewelry first. Also check 916 Purity grades which are marked on the 22 karat gold, Hallmark Center’s mark, Year of Marking and Jeweler’s Identification Mark.
All of these have the advantage that when you go to sell or exchange them, the depreciation cost will not be deducted. Also, it certifies that the gold you bought is not the one which was stolen or sold in the black market or the fake one. This way you can prevent the fraud that’s going on in the gold trade. This way you also help the government to cease the black marketing and fraudulent in the buying and selling business of gold.
Be aware and be wise. One caution of yours will help you to prevent the regret you’re gonna have if you buy the fake gold. The hallmarking of gold is made for the best use and for the advantage of the consumer. When buying hallmark jewelry, you will have to pay a little more price, in which the cost of this test is included. Many times, the price of hallmark jewelry can also vary in different shops. So gather information on hallmark gold from the appropriate place.
7. Carat or karat:
The most important scale of measuring the accuracy of gold is the carat. The more carat, the more authentic the gold will be. More carats mean higher prices. The lesser the carat will be, the cheaper it is to buy gold. Many times, when jewelers sell gold jewelry, they collect from the customers 24-carat prices. If a shopkeeper is claiming to give you 24-carat gold jewelry, then understand that he is a fake.
Because 24-carat gold is pure gold, and jewelry is not made from this gold. Because if this gold jewelry has been made then it will be broken very soon. Because this gold is very soft. Some metals are used with gold to make the jewelry to make it strong and durable. Just keep in mind that jewelry cannot be made from the 24-carat gold. But if you’re buying a gold coin then it’s possible that you find and buy pure 24-carat gold.
8. The purity of gold:
While buying gold ornaments, the first thought comes as to how pure it is and how much you can gain from the investment you have put on gold. Every jewelry shopkeeper claims to buy his sold jewelry back in the market according to the running rate. But if you go back to him to sell or exchange the jewelry then it is not necessary that you get the same profit as per the claim.
The gold may not be actually as pure as his claim. In order to buy gold, BIS 916 Hallmark is considered to be the standard of purity at the international level. In which it is guaranteed that gold is 91.6 percent pure, that is 22 carats. Generally, 22-carat gold is used to make all jewelry. Which contains 91.66 percent of gold. As we told you at 4 points, there are five hallmarks of hallmark and purity. But it is different in all the caret. According to the caret: 22 carats have 916, 21 carats have 875 and on 18 carats are written on 750. Which is proof of their accuracy?
Find out its purity when buying gold jewelry. Pure gold has more flexibility, due to which the jewelry made from it can turn. This makes the size of the jewelry deteriorating and it does not deserve to be worn again. 24-carat gold is the cleanest but it does not make jewelry. Gold jewelry is made of 22 or 18-carat gold. That is, 2 carats of another metal is mixed, with 22-carat gold. Before buying jewelry, always check gold purity from jewelers.
To know the purity of gold, gold is also melted. There are some chemicals and acids used by which gold quality can be tested. The acid doesn’t react when comes in contact with pure gold but they are reactive when exposed to impure gold. Another criterion to measure the purity of gold is its Fineness. Fineness is used mostly for screening 24-carat gold. According to the World Gold Council website, 24-carat gold can also be subtle in combination. In precious metals like gold, an impurity is represented by 1,000. 24-carat gold financing is considered to be 999.9 in 1,000.
It is very important that you know how to calculate the right price if the gold you’re buying. Because the jewelers charge 24-carat gold price for 22-carat gold and the price of 22-carat gold for 18-carat gold. So you need to know the exact amount you have to pay according to the cast of gold you’re buying. For example, if the 24-carat gold price is said fifty thousand according to the market rate. And if you’re buying 22-carat gold then you can calculate the price of 22-carat gold in the following way.
First, divide fifty thousand by 24 then multiply it with 22. That is 50000/24*22= 45834. So you only have to pay approximately forty-five thousand along with the tax, VAT, and the making charge if you’re buying the designer jewelry. But if you go to the jewelers he will make you pay the price of 24-carat gold that is fifty thousand. With your little awareness, you can save up to four to five thousand per jewelry. One simple formula for calculating the cost of your gold which everyone can understand clearly is Cost of Gold Jewellery = Making Charges + Wastage Charges + Cost of Stones, if any + VAT/ TAX.
The marketing strategy of the shopkeeper is very cunning. They will offer you various schemes when you buy gold to attract you to buy more gold. These schemes can be seen commonly during the festive and marriage season. Such as if you buy so and so ornament or so and so jewelry, you’ll get twenty percent discount or some gift offer. Or the special discount valid only for today, or scratch a card and get your lucky discount etc.
These are the gimmicks that they play to preempt further negotiation. Don’t fall for those tricks. You have to be careful not to be played with and fooled by these schemes. They are often made in the purchase of the mixed, impure or fake jewelry.