Gold shopping this Dhanteras: Here’s what you must check before paying | Personal Finance

A beautifully designed gold necklace or a pair of earrings may catch your eye this Dhanteras, but the real value of the purchase lies in what you cannot see  — its purity.

 

A wrong purity claim, a misleading weight or unexplained charges can turn a festival purchase into an expensive mistake.

 

With gold purchases forming an important part of Dhanteras celebrations, buyers should look beyond the design and the quoted price. Checking the Bureau of Indian Standards (BIS) hallmark, verifying the six-character Hallmark Unique Identification (HUID) number and examining the final invoice are essential steps before making payment.

 

A BIS hallmark provides an assurance of the declared purity of gold jewellery. Consumers can also use the BIS Care app to verify the hallmark details. However, knowing what the markings mean, how to check them and what to look for in the bill can help buyers make a more informed purchase.

  

What should buyers check on a gold hallmark?

 

A BIS-hallmarked gold jewellery piece carries three identifying marks:

 

·  BIS Standard Mark: The official logo of the Bureau of Indian Standards.

 

·  Purity grade: This indicates the gold’s caratage and fineness.

 

·  Six-character HUID: A unique alphanumeric identification number assigned to each hallmarked jewellery item.

 

The purity grade is particularly important because different caratages contain different proportions of pure gold.

 

·  24-carat gold: Contains approximately 99.9 per cent pure gold.

 

·  22-carat gold: Contains 91.6 per cent pure gold.

 

·  18-carat gold: Contains 75 per cent pure gold.

 

·  14-carat gold: Contains 58.5 per cent pure gold.

 

For instance, a marking of 22K916 means the jewellery contains 91.6 per cent pure gold. Similarly, 18K750 indicates 75 per cent gold content. Buyers should check that the purity mentioned on the jewellery matches the description on the bill.

 

Mandatory BIS hallmarking applies to gold jewellery and artefacts covered by the government’s hallmarking order, subject to specified exemptions. Gold bars and coins are not covered by the mandatory jewellery hallmarking requirement. They fall under a separate voluntary BIS certification scheme for approved refineries and mints.

 

How to verify the HUID using the BIS Care app

 

Checking the hallmark should not be limited to looking at the marks engraved on the jewellery. Buyers can independently verify its authenticity through the BIS Care app, available on Android and iOS.

 

The process involves the following steps:

 

1.    Download the official BIS Care app on your smartphone.

 

2.    Open the app and select the ‘Verify HUID’ option.

 

3.    Enter the six-character alphanumeric HUID engraved on the jewellery.

 

4.    Check the information displayed, including the purity, type of jewellery, jeweller’s registration details and hallmarking centre.

 

5.    Match these details with the jewellery being purchased.

 

If the information displayed does not match the product, buyers should seek clarification from the jeweller before making payment.

 

The app is useful because a genuine-looking hallmark engraving alone does not establish the authenticity of a jewellery piece.

 

Buying gold coins and bars? Check these details

 

The verification process is different for gold coins and bars because mandatory jewellery hallmarking does not apply to them.

 

Buyers should check the declared purity, net weight, refinery or manufacturer’s details and authentication information. Gold bullion is commonly sold in 999 or 995 fineness, indicating 99.9 per cent and 99.5 per cent purity, respectively.

 

The packaging and purchase invoice should clearly mention these specifications. Buyers should also check the credentials of the refinery or mint and whether it provides an assay certificate.

 

Samit Guha, managing director and chief executive officer of MMTC-PAMP, a Government of India enterprise and PAMP SA of Switzerland, a global bullion brand, said buyers should pay close attention to the purity, weight and authenticity of gold products.

 

“For gold coins and bars, buyers should check the declared purity, such as 999.9+, net weight and manufacturer’s or refiner’s details. These specifications should be clearly mentioned on the packaging and purchase invoice,” he said.

 

He added that buyers should purchase from credible refiners and mints that provide certified purity and assay assurance.

 

What mistakes should gold buyers avoid?

 

Apart from purity, buyers should pay attention to the weight and pricing of jewellery. The final bill may include several components over and above the prevailing gold rate.

 

Some checks before making payment include:

 

·  Check the net gold weight: Ask the jeweller to distinguish the gold weight from the weight of precious stones, beads and other materials used in the design.

 

·  Understand making charges: Compare making charges across jewellers. These may be calculated as a percentage of the gold value or as a fixed amount.

 

·  Check additional costs: Ask for a clear explanation of wastage, packaging and other charges included in the final bill.

 

·  Compare the final price: Check the prevailing gold rate and compare the premium charged by different sellers, particularly for coins and bars.

 

·  Understand buyback conditions: Ask whether the jeweller deducts making charges, melting charges or other costs when buying back or exchanging jewellery.

 

Guha said consumers should avoid purchasing from unfamiliar sources, overlooking declared weight or failing to insist on a proper invoice. He also advised buyers to compare minting and packaging charges across sellers and understand buyback and exchange conditions before making a purchase.

 

What if hallmarked jewellery is found to be impure?

 

A BIS hallmark provides consumers with a mechanism to seek compensation if the jewellery is found to have a lower purity than the grade declared on it.

 

Under Rule 49 of the BIS Rules, 2018, if hallmarked jewellery is found to have a purity shortfall, the buyer is entitled to compensation equivalent to twice the amount calculated on the basis of the purity difference for the weight of the article sold, along with the testing charges.

 

Consumers can also get their jewellery tested at a BIS-recognised Assaying and Hallmarking Centre on a chargeable basis. The centre issues an assay report recording the test results.

 

For buyers, the larger point is that purchasing gold on Dhanteras should not be driven by festive offers or attractive designs alone. Checking purity, verifying the HUID, understanding the final bill and retaining the purchase invoice can help avoid expensive mistakes.