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  5. What to do if your gold fails purity test? Claim double compensation. Know how

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What to do if your gold fails purity test? Claim double compensation. Know how

Upstox
By Upstox News Desk

2 min read | Updated on October 09, 2025, 17:00 IST

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SUMMARY

In India, the festive season usually brings a large demand for gold jewellery. In the middle of all the festive excitement and (fear of missing out) FOMO-fuelled buying, one crucial detail is often overlooked: 'How pure is the gold you’re buying'?

what to do if gold purity fails

In India, the festive season usually brings a large demand for gold jewellery. | Image: Shutterstock

Gold has always held a special place in Indian hearts as well as homes. Come Dhanteras and Diwali, it's almost a tradition to walk into a jewellery store, eyes set on that perfect necklace or a simple gold coin. For many, buying gold is a symbol of prosperity, security, and good fortune.
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From cities to villages, gold has long been trusted as a safe investment, often used as collateral for loans.

In India, the festive season usually brings a large demand for gold jewellery. In the middle of all the festive excitement and (fear of missing out) FOMO-fuelled buying, one crucial detail is often overlooked: 'How pure is the gold you’re buying'?

While everyone wants to get their money’s worth, identifying pure gold isn’t always straightforward. That’s where BIS hallmarking comes in.
What is hallmarking?

The hallmarking scheme in India aims to safeguard the public from adulteration and requires manufacturers to maintain legal standards of fineness. Currently, in India, hallmarking has been extended to gold and silver.

What if the gold you bought isn't pure?
If the gold jewellery you purchase doesn't meet the promised purity standards, you're not left helpless.

According to Section 49 of the BIS Rules, 2018, if a gold article is found to be below the stated purity, the seller is legally required to compensate you.

  • Twice the value of the purity shortfall, based on the weight of the item, plus

  • Any testing charges you may have paid to get the gold checked.

Who will decide the amount of compensation in cases of complaint of the purity of the hallmarked article being less than declared/marked purity?

The amount of compensation has already been specified in sub-rule(1) of Rule 49 of BIS Rules, 2018, which states “Provided that in case of precious metal article not conforming to the relevant standards, such compensation shall be two times the amount of difference calculated based on the shortage of purity for the weight of such article sold and the testing charges”.

Gold rates today
Gold and silver prices dipped in intraday trade on Thursday, October 9, as investors booked profits at record-high levels. Around 9:45 AM, MCX Gold December futures were down 0.37% at ₹1,22,749 per 10 grams, while MCX Silver December futures slipped 0.89% to ₹1,48,524 per kg.

With physical gold in high demand, India’s gold ETFs are also seeing all-time high inflows from investors.

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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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