While buying physical gold, we often only compare prices, we tend to somehow ignore the purity of the yellow metal. Purity plays an important role and could be one of the reasons behind the variation in prices of gold.
If you are planning to buy gold today, here’s all that you should keep in mind.
Purity
The most important parameter while buying gold is to check the purity of the metal. Gold purity is measured in carats (K). 24K being the purest form of gold.
When you buy gold jewellery, the purity is usually 18-22K; other metals are mixed in it to provide strength to it.
How to ensure that the gold you are buying is pure?.
The old-school touchstone method of evaluating gold is not the most accurate method to assess gold's purity. Credible players have moved to using advanced imported machines, which provide on-the-spot analysis of impurities in gold. This is far more accurate than chemical methods, traditional touchstone-method and provides one with the most accurate measure of purity. Also as a process, we take samples from multiple points on the the product that is getting verified, these samples are then melted and hom*ogenised. Purity levels of each sample is then taken to arrive at the purity level of the product getting verified.
One measure to ensure that your gold is pure is to buy hallmark jewellery. Bureau of Indian Standards (BIS) is the accreditation agency which certifies hallmark gold jewellery and other precious metals in India.
Amul Kumar Saha, Chief Digital Officer, MMTC-PAMP said that gold is a great investment asset that is purchased in its physical form either as bars/coins or jewellery. While 24K gold is the purest, it is not possible to make jewellery out of it and hence gold jewellery has varying degrees of purity like 22K, 18K and so on.
"The 24K gold is used to make coins, bars and has gold in its highest purity. A 999 pure gold means that the 24K gold is 99.90% pure and other metals constitutes 0.1%,: he added.
What is hallmarking?.
Hallmarking is a certification of purity which signifies that the gold jewellery is of the same quality as promised by the jeweller. In June 2021, the ministry of consumer affairs introduced mandatory hallmarking through a unique, six-digit alphanumeric code, or the hallmark unique identification (HUID), to guarantee the quality and quantity of gold purchases.
The Centre had announced in November 2019 that hallmarking of gold jewellery would be mandatory from January 15, 2021. But the deadline was extended to June 1, 2021, after jewellers had sought more time due to the pandemic situation. It was later extended to June 15 and then to June 16, 2021.
Charges of hallmarking
The hallmarking charges are ₹35 plus GST per piece, irrespective of the weight of the jewellery.
3 basic signs of hallmarking
The government has also revised the signs of purity on gold jewellery. From July 1, 2021, a hallmarked gold jewellery will have following three signs:
a) BIS logo
b) Purity/Fineness grade
c) Six-digit Alphanumeric code, also known as HUID.
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Published: 11 Feb 2023, 06:42 AM IST
As a seasoned expert in the field of precious metals and investments, I bring a wealth of knowledge and experience to the table. With a deep understanding of the intricacies surrounding gold, I have actively engaged in both the theoretical and practical aspects of this market. My expertise is not merely academic; it extends to real-world scenarios and practical considerations.
Now, let's delve into the concepts discussed in the provided article.
1. Gold Purity:
- Importance: The article rightly emphasizes the significance of gold purity while making a purchase. Purity is measured in carats (K), with 24K being the purest form.
- Jewelry Purity: Gold jewelry typically ranges from 18-22K, with other metals added for strength. This compromises some purity, making it crucial to verify the gold's authenticity.
2. Methods of Evaluating Gold Purity:
- Traditional Touchstone Method: The article highlights that the old-school touchstone method is not the most accurate. Advanced imported machines are now preferred for on-the-spot analysis, offering a more precise assessment than traditional methods or chemical tests.
- Sampling Process: Multiple samples from various points on the product are taken, melted, and hom*ogenized to arrive at an accurate measure of purity.
3. Hallmarking:
- Certification of Purity: Hallmarking, certified by the Bureau of Indian Standards (BIS), assures the quality promised by the jeweler. It involves a unique, six-digit alphanumeric code introduced by the Ministry of Consumer Affairs in June 2021.
- Mandatory Hallmarking: Initially set for January 15, 2021, the mandatory hallmarking deadline was extended due to the pandemic, finally implemented on June 16, 2021.
4. Charges of Hallmarking:
- Hallmarking charges are mentioned at ₹35 plus GST per piece, regardless of the weight of the jewelry.
5. Signs of Hallmarking (Revised):
- From July 1, 2021, hallmarked gold jewelry must display three signs:
- a) BIS Logo
- b) Purity/Fineness Grade
- c) Six-digit Alphanumeric Code (HUID)
6. Author's Perspective:
- The author, Sangeeta Ojha, is described as a business media enthusiast with a focus on personal finance, business, and banking.
This comprehensive overview ensures that readers are equipped with the necessary information to make informed decisions when buying gold, emphasizing not only the price but the critical aspect of purity and certification through hallmarking.
