How to buy gold safely this Dussehra, Diwali: Your 8-point checklist

But before you step into the showroom or your favourite jeweller shop to buy that gold piece that you have been eyeing, use this handy checklist to ensure you are making a smart and informed purchase.

Your gold buying checklist for Navratri, Dussehra, Diwali

Gold purity is measured in karats (K). 24K is the purest (99.9%) form. Most jewellery is made from 22K. Only coins and biscuits are 24 K.

A hallmarked piece will have five key marks, including the Bureau of Indian Standards (BIS) logo, the purity in karats, and a unique HUID (Hallmarking Unique Identification) number. Never buy gold without it.

Gold prices fluctuate daily. Before you visit the store, check the gold rate for 22K and 24K gold in your city. Gold rate varies across cities. If you are well-informed, you will not overpay.

Making charges are the labour cost involved in designing the jewellery, the simple the jewellery, the minimum you will have to pay as making charge. It can be a flat fee per gram or a percentage of the gold's value. These charges can be negotiable. During festival times, some jewellers even scrap these charges.

Some jewellers may include a separate 'wastage' fee for the small amount of gold lost during the making process. Ask if this is included in the making charges or a separate cost.

A 3% Goods and Services Tax (GST) is levied on the total cost of the gold. For example, a ₹1,00,000 gold purchase attracts ₹3,000 GST. This rate applies to all gold forms, including jewellery, coins, and bars.

This is crucial if you ever plan to exchange your old jewellery for new pieces or sell it in the future. Understand if the jeweller will deduct any amount for making charges when you sell your gold back.

Make sure it clearly states the purity of the gold (in karats and fineness), the weight of the gold, the making charges, the GST amount, and the HUID number. This is essential for any future exchanges or sales.

Gold price in India