The Nugget
- Buying or selling gold jewelry requires understanding key components like gold price, making charges, and GST to avoid confusion and ensure fair pricing.
- Always get a clear bill with all details before purchasing to protect yourself against fraud or disputes later.
Make it stick
- 🔍 Know the Gold Price: Always check the current market price of gold before making a transaction.
- 📜 Get a Clear Bill: Ensure your bill includes purity, making charges, GST, and stone weights.
- 💰 Calculate Charges: Add making charges and GST to the gold price for accurate cost assessment.
- 🚫 Avoid KDM Gold: KDM gold is harmful and should not be bought; always opt for BIS hallmarked jewelry.
Key insights
Buying Gold Jewelry
- Understand Components: Know the gold price, making charges, GST, and stone charges.
- Bill Importance: Obtain a bill that mentions purity, making charges, and separate stone weights to prevent disputes.
- Making Charges: Typically range from 12-20% depending on design; negotiate if possible.
- Use BIS Hallmarked Jewelry: Ensure jewelry has a BIS hallmark for guaranteed purity.
Selling Gold Jewelry
- No GST on Sale: Once paid during purchase, GST is not charged again on selling gold.
- Weight Adjustments: Be aware that jewelers may adjust the weight when melting down jewelry.
- Fair Pricing: The jewelers’ cutting fees can affect what you ultimately receive; understand these deductions.
- Comparison Shopping: Check prices at multiple stores before selling to get the best deal.
General Best Practices
- Research Before Purchase: Call multiple jewelers to know the current gold rate.
- Avoid Confusion with Carats: Always clarify the carat purity of the gold you are buying or selling.
- Stone Exclusions: When assessing jewelry value, stones should not be included in weight calculations.
Key quotes
- "The most significant confusion arises when buyers do not understand the essential components of gold pricing."
- "A clear mention of purity and charges in the bill is vital to prevent issues later on."
- "24-carat gold is too soft for jewelry - always go for 22 or 18-carat."
- "Don’t fall into disputes; know your numbers and components well before buying or selling gold."
- "The gold you sell might not return the same value you paid, due to making and other charges."
This summary contains AI-generated information and may have important inaccuracies or omissions.