How to Buy Gold Safely

Most bad gold purchases are not fraud. They are avoidable ambiguity. Remove it with these checks.

Before you go

• Look up today's rate for your city and karat so you know the baseline.
• Decide jewellery or investment. If it is purely investment, making charges are a cost you never recover.

At the counter

1. Confirm the karat and hallmark. Ask to see the BIS mark and the HUID, and verify the HUID in the BIS Care app while you are still in the shop.

2. Ask for the weighing to be done in front of you. Note whether the quote is on gross weight (including stones, beads, enamel, string) or net gold weight. For stone-set jewellery this difference can be significant.

3. Ask for the charge break-up in writing:

• Rate per gram applied, and for which karat
• Net gold weight
• Making charges (flat per gram, or percentage)
• Wastage, if charged separately
• Stone or gemstone value, listed separately
• GST

4. Negotiate the making charges, not the metal rate. The gold rate is broadly the same across reputable jewellers. Making charges are where the range is.

5. Ask about buy-back and exchange terms before you buy. Specifically: what deduction applies on buy-back, and whether the terms differ if you exchange for new jewellery versus taking cash.

Paperwork to keep

A GST invoice showing all the components above, the hallmark details, and any stone certification. Store it with the item, not loose in a drawer — you will want it years later.

Buying coins and bars

Buy from banks, recognised bullion dealers or established jewellers. Check that the packaging seal is intact — assay-certified coins lose some resale value once the tamper-evident seal is broken.