Buying gold during the festive season is a tradition in almost every Indian household. With festivals like Navratri, Karwa Chauth, Dussehra, and Diwali around the corner, jewelry stores will soon witness a rush of customers. However, if you are planning to buy gold ornaments or coins during this festive period, a little carelessness could lead to major losses.

Here are eight essential tips to help you make a safe and smart investment in gold this festive season:

1. Always Check for Hallmark

Never buy gold without a hallmark. Hallmarked jewelry carries five crucial markings, including the Bureau of Indian Standards (BIS) logo, the purity grade, and a unique Hallmark Unique Identification (HUID) number. These details guarantee that the gold you purchase is authentic and certified.

2. Verify Purity Levels

Gold purity is measured in carats (K). Pure gold is 24K (99.9%), while most jewelry is crafted in 22K (91.6%). Coins and biscuits are usually available in 24K. The government also recognizes 18K and 9K gold jewelry, so always confirm the carat before making a purchase.

3. Know the Current Gold Price

Gold prices fluctuate daily. Before visiting a jeweler, check the current rates of 22K and 24K gold in your city. This prevents overpaying. If you believe prices may rise soon, you can lock the rate by paying an advance and purchasing jewelry on a decided date.

4. Understand Making Charges

Making charges are the costs associated with crafting jewelry. Simple designs usually carry lower charges, while intricate patterns can be expensive. These charges can be calculated per gram or as a percentage of the gold value. Many jewelers even reduce or waive these charges during festive sales.

5. Ask About Wastage Charges

During jewelry making, a small portion of gold is lost, known as wastage. Some jewelers include wastage in the making charges, while others add it separately. Always clarify with your jeweler to avoid unexpected costs.

6. Be Aware of GST

Gold purchases attract 3% GST on the total value. For example, buying gold worth ₹1,00,000 will add ₹3,000 as GST. This tax applies to all forms of gold—whether biscuits, coins, or ornaments. Factor this into your budget while shopping.

7. Understand the Buy-Back Policy

If you plan to exchange or sell your jewelry in the future, make sure you know the buy-back policy of the jeweler. A transparent policy ensures that you receive the right value for your old ornaments without unnecessary deductions.

8. Always Take a Detailed Invoice

Your bill should clearly mention details such as purity (carat and fineness), weight, making charges, GST amount, and HUID number. This invoice acts as valid proof for future resale or exchange and safeguards your interests.

Final Word

The festive season often tempts buyers with discounts, offers, and attractive designs. But smart purchasing requires more than just choosing a beautiful ornament. From checking hallmarking to understanding GST and buy-back policies, these eight steps will help you make a safe, genuine, and profitable investment in gold.

This season, celebrate the joy of festivals with not just gold jewelry, but also the peace of mind that comes from making the right choices.