The Indian festival of Dhanteras is about to come and it is considered auspicious to buy gold on this day. Traditionally, on this day, there is a practice of buying gold and silver jewellery along with utensils and other things. After rising for many months, the prices of gold and silver have become somewhat stable now.   

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Gold is trading around Rs 50,000-Rs 51000. Experts are of the opinion that the prices may go up in the wake of high demand during the festive season. So, anybody who is planning to buy gold should do it now. Also, know these important things while buying gold. 

Know the price of gold:  

You should know the market price of gold before buying gold or silver. After knowing the spot price of gold and silver, buy or sell gold in the market. You can know the price from the website of Indian Bullion Jewellers Association (IBJA). The rates mentioned on the website are not inclusive of the 3 per cent GST. You can quote the price while selling the gold.  

How is the price of Jewellery is decided? 

1 caret gold means 1/24 per cent Gold. If your jeweller is made up of 22 carat gold, then divide 22 by 24 and then multiply it by 100.  This comes to 91.66 per cent which is the total gold used in your jewellery.  

The price that you find on TV news or programmes is with respect to 24 caret gold. Assume that the price per 10 gm of gold id Rs 50000. The jewellery that you buy from the shop is 22 caret which means the actual price of that gold will be (50000/24)x22= Rs 45,833.33. The jeweller, will however, give 22 caret gold for the price of 24 caret. 

Likewise, the price for 18 carat can also be calculated which will come to Rs 37,500. 

Making charges and GST 

The making charge will depend upon the design of the jewellery. The making charge could be from 2 per cent to 20 per cent. There are no directions from the government with respect to making charges. Jewellers charge it as per their costs. There is a 3 per cent GST on it. Pure gold is 24 per cent but jewellery cannot be made from pure gold at it is very soft.   

See Hallmark before buying Jewellery  

Always see the hallmark before buying a jewellery. You can raise the issue with the jeweller if there is no hallmark. You can also make complaints if the jewellery is not hallmarked. It is difficult to determine the price of jewellery without hallmark.  

Hallmark Purity 

375 37.5% pure 

585 58.5% pure 

750 75.0% pure 

916 91.6% pure 

990 99.0% pure 

999 99.9% pure 

See Zee Business Live TV Streaming Below:

Gold Purity 

24 carat 99.9% 

23 carat 95.8% 

22 carat 91.6% 

21 carat 87.5% 

18 carat 75% 

17 carat 70.8% 

14 carat 58.5% 

9 carat 37.5%