Consumer

PURCHASING UNDER PUBLIC DISTRIBUTION

SYSTEM
PURCHASE OF COSMETICS
PURCHASE OF DRUGS
PURCHASE OF CLOTHS
MISLEADING ADVERTISEMENT
 Hall
PURCHASE OF GOLD mark
 INDEX OF CONTENTS
1. Structure of Jewellery Industry
2. Points to keep in mind
3. Purity / Quality / Carat
4. What is Hallmarking gold
5. How to identify the mark
6. Gold Price
7. Wastage and Making Charges
 Structure of jewellery industry
You will be saved Rs. (C+D) when you
a Rs.
purchase directly from the Manufacturer
Manufacturer

(a+b) Rs. Wholesaler

Retailer
(a+b+c) Rs.

(a+b+c+d) Rs. Customer

 Points to keep in mind while purchasing Gold jewellery

• Purity- When it comes to purity, most gold has a marking inside that
indicates its caratage

• Price – The price of gold jewellery is determined by the purity of the

gold and by the amount of skill and labour that goes into the piece

• Identification- In India, Local law requires that every item of Gold

jewellery bears a clear stamp indicating its caratage.

• Check 0 on the weighing machine before weighing weight

 What is Purity/Quality/carat?
• A carat is a unit of purity of gold alloys
• 24 carat gold is fine (99.9%)
• 22 carat gold is 22/24 = 91.67%
• 18 carat gold is 18/24 = 75%

• 22 carat gold is most popular in India and is

generally termed as 916
 What is Hallmarking of jewellery?
• Hallmark is a purity certification of gold articles in accordance with Indian
Standard specifications.
• Government of India' has identified BIS a sole agency in India to operate
this scheme.
• Design of Hallmark on Gold Jewellery is given below
– 23 carat gold = 95.8%(23/24)
– 22 carat gold = 91.6%(22/24)
– 21 carat gold = 87.5%(21/24)
– 18 carat gold = 75%(18/24)
– 14 carat gold = 58.5%(14/24)
– 9 carat gold = 37.5%(9/22)
 How to identify the hallmark?
• BIS hallmark for gold jewellery consists of
several components:
– The BIS logo.
– A three digit number (out of a set of six pre-defined values)
indicating the purity of the gold in part-per-thousand-format viz;
958, 916, 875, 750, 585, 375. Thus a BIS 916 hallmark would
certify to a purity of 916 per 1000, that is 91.6%, translating to a
22carat purity of gold.
– Logo of the assaying centre.
– A code denoting the date of hallmarking.
– Logo/code of the jeweller.
 Identification mark example
BIS Logo

916 Jewellery is 916 fineness

Logo of Assaying Centre

A Year of marking = 2000

Logo of the Jeweller

 Gold Price
• Every city/town has a jewellery association
and all the jewelers follow the price decided
by their jewellery association.

• Gold prices fluctuates on the daily basis.

• Some big jewellers follow price by their own

on the basis of international market.
 Wastage and making charges
• Wastage: During the process of making the ornament some amount of gold
will be wasted or will be lost while cutting, soldering, melting etc.
• Hence the gold gets ‘wasted’ in the manufacture of a jewellery item.
• These are called wastage charges and jewellery stores generally asks buyer to
pay these wastage charges.
• Generally, the wastage charges are dependent on type of ornament and they
range anywhere between 3% to 25%. Wastage charges are expressed as % of
weight of gold ornament.

• Making Charges: Making Charges are the charges you pay to the Gold Smith to
make the Jewel out of raw gold.
• A good design is a culmination of artistic view and effort to create a wonderful
design that attracts the eyes of buyer.
• So for making such designs, Jewelery stores generally charges the customer
with making charges. This varies from design to design based on the
complexity. It varies based on jeweller.
• VAT: 1% of the total cost of the ornament.
 Example of Total price calculation
• A buys an ornament weighing 25gms 22ct quality
from B and this is how B charges A

• Weight = 30.000 gms

• Wastage (8%) = 2.4000 gms
• Total = 32.400 gms
• Rate (22ct rate) = 2750 / gm
• Price = 89,100/-
• M.c (50/gm) = 1500/-
• Total Price = 90600/-
• VAT (1%) = 906/-
• Total Including vat = 91506/-
 Gold testing centers

ASIAN GOLD TESTING

You can find Gold Testing centers at your place and get your jewellery/gold tested.
 How you may get cheated
• Check 0.000 while weighing ornament
• Beware of hollow items
• Beware of Unsoldered items
• Beware of Stones
 RIGHT TO
INFORMATION