What to Ask Before Buying Gold? A Complete Guide

    Posted by Rakesh Kumar on February 26, 2025
    What to Ask Before Buying Gold? A Complete Guide

    Gold is a valuable investment and a timeless addition to any jewellery collection. However, before making a purchase, it's essential to ask the right questions to ensure you get the best quality and value for your money. Here’s a complete guide on what to ask before buying gold.

    1. What is the Purity of the Gold?

    Gold purity is measured in karats (K), with 24K being pure gold. Common options include:

    • 24K (99.9% pure) – Soft and not ideal for jewellery.

    • 22K (91.6% pure) – Suitable for jewellery but slightly soft.

    • 18K (75% pure) – Durable and often used in studded jewellery.

    • 14K and below – More durable due to a higher percentage of alloys. 

    2. Is the Gold Hallmarked?

    Hallmarking ensures that the gold meets purity standards. In India, gold is certified by the Bureau of Indian Standards (BIS). Always check for:

    • BIS logo

    • Purity in karats (e.g., 22K, 18K)

    • Jeweller’s identification mark

    • Year of hallmarking

    3. What is the Current Gold Rate?

    Gold prices fluctuate daily based on market conditions. Ask for the current gold rate per gram before making a purchase to ensure you’re paying a fair price.

    4. What is the Making Charge?

    Jewellers charge a making fee for crafting jewellery. It can be:

    • A fixed percentage of the gold price (e.g., 10-20%)

    • A flat fee Compare making charges at different stores before finalizing your purchase.

    5. Are There Any Additional Charges?

    Some jewellers may add:

    • Wastage charges (extra gold used during crafting)

    • GST (Goods & Services Tax) (currently 3% on gold jewellery in India) Clarify these costs upfront to avoid surprises.

    6. What is the Buyback Policy?

    If you plan to resell or exchange your gold in the future, ask about the jeweller’s buyback policy. Important points to check:

    • Will they repurchase at the current gold rate?

    • Will they deduct making charges?

    • What are the terms for exchanging old jewellery?

    7. Is the Gold Genuine and Sourced Ethically?

    Ensure you’re purchasing from a trusted jeweller to avoid counterfeit or impure gold. Ask about the gold’s source and whether it adheres to ethical standards.

    8. What Type of Gold Should I Buy?

    Depending on your purpose, choose from:

    • Gold jewellery – For personal use and gifting.

    • Gold coins/bars – Ideal for investment.

    • Digital gold/Gold ETFs – Paperless investment options.

    9. How Should I Store and Maintain Gold?

    Ask for maintenance tips, including:

    • Proper storage (in a safe or bank locker)

    • Cleaning methods

    • Frequency of polishing for jewellery

    10. Can I Get a Certificate of Authenticity?

    For investment or high-value purchases, request a certificate detailing purity, weight, and other specifications. This is crucial for resale or insurance claims.

    Final Thoughts

    Buying gold is a significant investment, and asking the right questions ensures you make an informed decision. Whether you’re purchasing jewellery or investing in gold, always choose a reputed jeweller and verify purity, pricing, and policies before finalizing your purchase.

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