Frequently Asked Questions

Purity: 24K gold is 99.9% pure gold, while 22K gold contains 91.67% gold mixed with other metals like silver, copper, or zinc.

Durability: 22K gold is more durable and suitable for daily wear jewelry because the added metals make it harder. 24K gold is softer and more prone to scratches.

Price: 24K gold is more expensive per gram due to higher purity. 22K gold is typically 8-10% cheaper than 24K gold.

Usage: 24K gold is preferred for investment and coins, while 22K gold is commonly used for jewelry making.

Color: 24K gold has a bright yellow color, while 22K gold may appear slightly less yellow due to alloy metals.

International Markets: Gold prices are influenced by global market conditions, including demand and supply dynamics worldwide.

Currency Fluctuations: Since gold is priced in US dollars internationally, changes in USD to INR exchange rates affect gold prices in India.

Economic Factors: Inflation rates, interest rates, and overall economic conditions impact gold prices as investors view gold as a safe-haven asset.

Geopolitical Events: Political instability, wars, and global conflicts can drive investors toward gold, increasing prices.

Central Bank Activities: Buying and selling of gold by central banks worldwide influences global gold prices.

Import Duties and Taxes: Changes in Indian import duties, GST, and other taxes affect the final retail price of gold.

Definition: Making charge is the cost of labor and craftsmanship involved in creating gold jewelry.

Calculation: Usually charged as a percentage of gold weight (typically 6-15%) or as a fixed amount per gram.

Factors: Complexity of design, craftsmanship quality, and brand reputation influence making charges.

Negotiation: Making charges are often negotiable, especially for larger purchases or simpler designs.

Resale Value: Making charges are typically not recovered when selling jewelry, only the gold value is considered.

Historical Performance: Gold has shown consistent long-term growth and has outperformed inflation over the past decades.

Liquidity: Gold is highly liquid and can be easily sold or converted to cash when needed.

Inflation Hedge: Gold traditionally performs well during high inflation periods, protecting purchasing power.

Cultural Significance: Gold holds cultural value in India, ensuring steady demand during festivals and weddings.

Tax Benefits: Long-term capital gains on physical gold are taxed if sold after 3 years, but sovereign gold bonds offer tax benefits.

Risks: Price volatility, storage costs, and making charges on jewelry are factors to consider.

Definition: Hallmark is a official certification of gold purity issued by Bureau of Indian Standards (BIS).

Certification: Hallmarked gold carries a BIS mark, purity grade (22K916, 24K999), and assaying center's identification.

Consumer Protection: Ensures customers get the exact purity they pay for, preventing fraud.

Resale Value: Hallmarked jewelry fetches better resale prices as purity is guaranteed.

Mandatory: As of 2021, hallmarking is mandatory for all gold jewelry sold in India.

Hallmark Check: Look for BIS hallmark mark, purity grade, and jeweler's identification on the jewelry.

Magnet Test: Gold is not magnetic. If the jewelry sticks to a magnet, it's not pure gold.

Color Check: Pure gold has a consistent bright yellow color. Discoloration may indicate impurities.

Density Test: Gold is denser than most metals. Professional jewelers use specific gravity tests.

Acid Test: Nitric acid test can determine gold purity but should only be done by professionals.

Professional Verification: For valuable items, always get verification from a certified assayer.

Physical Gold: Coins, bars, and jewelry - traditional but involves storage costs and making charges.

Gold ETFs: Exchange Traded Funds that track gold prices, traded on stock exchanges.

Sovereign Gold Bonds: Government securities with 2.5% annual interest and tax benefits on capital gains.

Gold Mutual Funds: Funds that invest in gold mining companies or gold ETFs.

Digital Gold: Online platforms allowing small investments with secure storage.

Gold Futures: Derivative contracts for sophisticated investors with high risk and potential returns.

International Prices: Global gold market trends directly impact Indian prices.

Import Duty: Currently 15% import duty significantly affects domestic gold prices.

GST: 3% Goods and Services Tax is applicable on gold purchases.

Demand-Supply: Festival seasons, wedding demand, and rural purchasing power affect prices.

Monsoon: Good monsoon seasons increase rural income and gold demand.

Global Economy: Economic uncertainties and stock market performance influence gold demand.

Price Timing: Gold prices tend to be lower during summer months (June-August) due to reduced demand.

Festival Seasons: Avoid buying during major festivals like Diwali, Akshaya Tritiya when demand and prices peak.

Market Conditions: Consider buying during economic stability when gold prices are relatively lower.

Systematic Investment: Instead of timing the market, consider regular small purchases (SIP approach).

Global Events: Monitor international markets and buy during global price corrections.

Long-term Perspective: For long-term investors, timing is less important than consistent investment.