Planning to buy gold this Dhanteras? Check price, purity and hallmarking

Dhanteras, which marks the beginning of the five-day festival of lights, is considered an auspicious day to buy new metal items, especially precious metals like gold and silver. People flock to shops to buy valuable items ahead of Dhanteras.

Dhanteras is observed on the 13th lunar day of Krishna Paksha (dark fortnight) in the Vikram Sambat Hindu calendar month of Aaswayuja in the Amaavasyanta Luni-Solar Calendar. On Dhanteras, devotees worship Lord Dhanvantari, the God of Ayurveda and iis believed that Lord Dhanvantari helped humankind by imparting the wisdom of Ayurveda, to help rid it of horrible diseases. 

Literally, Dhanteras means 'dhan' or wealth, while 'teras' is the 13th day of the moon cycle wherein people offer prayers to Lakshmi, the goddess of wealth and prosperity.

On festivals, the age-old tradition of buying gold like -- jewellery, bars, and coins for Indians remains integral, particularly during Dhanteras and Diwali. Generally, July – September is a seasonally weak period for gold demand due to monsoons and inauspicious periods like Pitru-Paksha when buyers usually prefer to postpone gold purchases.

For us Indians, gold is a symbol of purity, prosperity and opulence. 

However, people need to be cautious while purchasing a long-term asset like gold for cultural significance. Here are the steps to be considered:

Most importantly, always buy gold from a reputed jeweller registered with the Bureau of Indian Standards (BIS). The certificate of registration issued by BIS should be displayed in the jewellery shop. 

Gold price

While buying yellow metal, people should cross-check the price. The price of the gold depends on the karat which is a measurement of the purity of a piece of gold. Remember to compare the gold price with the weight of the gold product before finalising the bill. If you buy gold jewellery, you will have to shell out making charges. 

We don’t have any control over gold prices, however, you can negotiate on the making charges. This charge is levied either as a percentage of the value of gold or is based per gram of gold. At the time of purchase, ascertain the terms and conditions of the repurchase price and buyback. This information will be required in case you want to exchange your existing piece for a better design, or want to sell it in an emergency.

Ask for bill

After buying gold, some people don't prefer taking a bill to avoid paying goods and services tax (GST). But not taking the bill can cause difficulty in case a dispute arises in the future and you need to seek redress. The bill should include details of the hallmarked article.

Gold purity

The gold's fineness is measured in karat and is categorised into 10, 14, 22 and 24 karats and every gold article has hallmarking that indicates its Caratage. Pure gold is too delicate to be used as jewellery. So, it is alloyed with a mixture of metals like silver, copper, nickel, and zinc to give it durability and strength. The most common ‘Carat’ options for gold are -- 18K, 22K and 24K. The higher the number, the higher the purity of the gold.

Gold hallmark

In June 2021, the government of India made hallmarking of jewellery mandatory for 14-, 18- and 22-karat gold jewellery and artefacts. Only Bureau of Indian Standards (BIS)-registered jewellers at certified sales outlets can sell hallmarked jewellery. The hallmarking of gold, which is voluntary in nature at present, is a purity certification of the precious metal. You can get a hallmarked gold item tested at any BIS-certified A&H centre by paying a fee of Rs 200. 

According to the BIS, hallmarking is defined as an "accurate determination and official recording of the proportionate content of precious metal in the jewellery/artefacts or bullion/coins".