Eight questions to ask before you buy gold

  • | Wednesday | 21st August, 2019

As long as you are selling 22K gold, the showroom may not reduce any price but give you the actual market price of the 22K gold by its weight. Some showrooms charge melting cost or handling charges — never fall into that trap. Ask for the current gold price on your purchase day and their standard making charges or wastage before commencing your shopping. Many big brands have a limited buy-back policy of Rs 1,00,000 which means that if you buy jewellery worth Rs 5,00,000, you can exchange or sell only jewellery worth Rs 1,00,000. So, buy jewellery which is open from behind.

By Express News Service CHENNAI: Over the years, the city’s relationship with the precious yellow metal has evolved. From being a giant investment, a symbol of luxury to a fashion accessory to flaunt — it means different things to different people. To help you buy that stunning piece of jewellery you’ve always eyed while being mindful of its worth, wearability and other factors that affect the final amount you will be paying, Rahul Chowatia, founder, Brilliant Cut, shares a few tips to keep in mind when you deal with jewellery showrooms. If you are reselling jewellery, make sure that you are getting the full price of what you are selling. As long as you are selling 22K gold, the showroom may not reduce any price but give you the actual market price of the 22K gold by its weight. Some showrooms charge melting cost or handling charges — never fall into that trap. While buying, every piece has to be weighed separately and tested for purity using the electronic purity tester. So, get it checked in the store before buying. Ask for the current gold price on your purchase day and their standard making charges or wastage before commencing your shopping. Remember, the highest making or wastage should not exceed 14 per cent on any jewellery. Many showrooms charge 40 to 50 per cent wastage on antique or bridal jewellery. So, it makes it Rs 1,30,000 more expensive on every Rs 5,00,000 purchase. Many big brands have a limited buy-back policy of Rs 1,00,000 which means that if you buy jewellery worth Rs 5,00,000, you can exchange or sell only jewellery worth Rs 1,00,000. So, please enquire about their return policy before buying. Most importantly, go back to them within a week to resell the jewellery if they say they will give 100 per cent resale value without deducting a rupee. This will help you test their authenticity. Did you know that many showrooms put more than 30 per cent wax in jewellery while they charge for pure gold? This is why they don’t give 100 per cent cash when you resell it to them. So, buy jewellery which is open from behind. Buy the closed ones only when the showroom affirms to give 100 per cent resale value in cash. There could be salespersons who try to belittle you on your thriftiness and even might raise their voice. You may remind such people that you know this business and it is your money that is at stake. Further, you may ask them why there’s no norm for ‘wastage charges’ (hopefully, at some point the government will normalise this as well). Most showrooms might offer you a discount of Rs 40 or Rs 50 per gram on the prevailing rate as if they are doing you a favour. Please note that your real saving comes from the wastage charge negotiation. The ‘special discount valid only for today’ or ‘pick a chit and get your lucky discount’... are gimmicks that they play to pre-empt further negotiation. Don’t fall for those tricks. Maximum wastage should not exceed 14 per cent. Don’t sign up for gold savings scheme which doesn’t include antique or exclusive bridal jewellery. Almost all branded showrooms include local jewellery in the scheme which turns into forced shopping for most buyers because they didn’t read the scheme before. While buying diamond jewellery, ask for a laboratory testing certificate from renowned laboratories like IGI, SGL, GII, GIA and get the report verified on the respective laboratory’s website. For details, visit www.brilliantcut.co.in

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