People love to wear designer gold jewelries around the world. They spend hard earned money to buy the variety of gold and gold jewelries. Gold jewelries like Gold bangle, Gold necklace, gold rings etc are bought by male and female both. These jewelries are made with only gold or combination of gold with precious stones or Diamonds or Gems. Therefore while planning to buy the gold, one should be aware of buying tips for the gold and buying tips for the gold jewelry. There are number of tips known in the market but here find some of the best tips which every buyer should follow at-least when buying gold. These gold buying tips are:
- Know the Karat of gold you are buying and ask the seller about Karat of gold
- Is the gold is “916”, BIS Hallmark or not
- What is the Making charges
- What are wastage charges if any applied
Also Read - Techniques used by Gold seller to cheat the customers
Also Read - Check the mythological reasons and story that why Akshaya Tritiya is considered as the best day to buy Gold
Know the Karat of gold you are buying and ask the seller about Karat of gold: Karat is measurement of gold purity. 24kt gold is pure gold while based on how much extra metals are added, the Karat value of the gold reduces to 22Kt, 18Kt, 14Kt or even 10Kt.
Is the gold is “916”, BIS Hallmark or not (in India): The Bureau of Indian Standards (BIS) gives the certificate to the quality of gold. In India, 22K gold is considered the most valuable for jewelries and hence it has more resale value as well. Therefore, 22Kt gold jewelry means it has 22/24 percent pure gold in it or in other words 91.6% purity and this is called as 916 Gold (symbolizes 91.6%). Hence, to avoid the chances getting cheated by the gold sellers, the Bureau of Indian Standards (BIS) made it mandatory to emboss a hallmark on all standardized gold jewelry. And such jewelry is known as a BIS Hallmark jewelry.
What is the Making charge’s: The amount of money spend (labor charge, machine charge, time charge etc) to convert raw gold to gold jewelry is known as Making charge in Gold jewelry. This can vary shop to shop and thus it is not standard for any kind of jewelry. Therefore, one can bargain with jewelers/sellers on making charges of gold, which may result in decrease of final costing.
What is wastage charges if any applied: The goldsmiths used to make gold jewelry by melting gold, cutting and shaping it into tiny pieces and join them together to make great handmade designer gold jewelry. Thus, in this process they ‘claimed’ that certain quantity of gold go wasted and levy such charges on the final costing of the gold Jewelry. In such cases most of the time, goldsmiths are actually smart enough to collect or retrieve most of the gold without wasting any and therefore, cheat the public by levying the Cost though there may be no wastage of gold. Thus, one should ask for the gold wastage charges are applied if any on final cost of gold and it is also negotiable or removable. Thus the final actual cost of the gold jewelry can be calculated as:
Actual cost of gold as per the day’s rate + Wastage charges + Making Charges + (Tax) if any. Also add the cost of precious stones, if added
Cost of Gold Jewellery = Making Charges + Wastage Charges + Cost of Stones, if any + TAX (if any)
For example, If the gold rate is at Rs.2500/- per gram for 22 Karat gold. When you buy a 10 gram gold chain with the making charges at 35 rupees per gram and wastage charges at 12%, the following will be the calculation to arrive at the final price:
(1) Cost of gold alone = 10 * 2500 = 25,000/-
(2) Making charges = 10 * 35 = 350/-
(3) Wastage charges = 12 * 25,000 / 100 = 3,000/-
The total cost before Tax = 28,350/-
If the Tax is at 1% that becomes 28,633.50/-
