BE AWARE WHEN MOVING IN GOLD MARKET, IT IS SLIPPERY

A fortnight ago, I was talking to my friend. During conversation he revealed that gold earrings of her wife got worn out. These earrings were presented to the lady on the occasion of her wedding, some 25 years ago, by her sister-in-law.He thought of remaking it. Therefore discussed it with a friend, who is in the business of jewelry making. His friend told that the earrings worth is not more then Rs.20/-, as the same was made out of brass. My friend resisted that how it could be as the same was presented by his sister. But the goldsmith, said, it is. Shocked with the revelation of truth after 25 years, my friend think of consulting some other one. It was to his utter surprise that second man repeated the same thing. Friend was in dilemma, how to disclose to the sister, if he did not, his sister purchasing all her family jewelry, from the same shop, may be in deep water. After a deep thought he revealed it to her sister. She was also shocked, but told the friend to give those earring to him and she will discuss it with the shop owner she is making all jewelry purchases since last 30 years. It was a pleasant surprise to the sister that the shop owner returned entire amount of the gold earrings. Even before his sister could open her mouth and any discussion regarding the quality of gold.

How it could be, two dealers are making statement that the ornament is of brass, whereas the original seller is accepting them as gold, without any discussion. This clearly indicate that something fishy is going in the gold ornament market and the interests of the consumers are at stake. Akhil Bhartiya Grahak Panchayat is taking up the matter for standardization of gold ornaments since long. In the year 2000, Hall Mark stamping introduced by the BIS on voluntary basis, it worked as third party assurance. Caratometer were also introduced by some of the dealers in the market to measure purity of the Gold. But steps were not of much use, since unscrupulous traders continue to perform in the gold market. After a long chase the cabinet ministry approved the amendment in the BIS Act for making the provisions of Hall mark mandatory for all Gold Dealers. 

Even if the provision of Hall Marking mad mandatory for the Gold Ornaments/ Articles. It is necessary for the consumers to understand some basics of this trade. So that their investment in gold fetch them proper price, in the need of the hour.

Firstly the specifications for gold jewelry/articles fineness and marking were published in 1959, later on, these specifications revised in 1971, 1981 &1999. These specifications are based on the standards for manufacturers mark, details of purity/ fineness, followed in the world. 

In India these specific grades are covered by the IS2790, where guidelines are prescribed for manufacturing 23, 22, 21, 18, 14 & 9 Carat gold alloys. It is important for the consumers to become aware of the terminologies, used in the gold market.

CARAT -                         1 of 24th part by mass of the metallic element Gold.

STANDARD GOLD -    Fineness 995 parts per thousand and above without 

                                        any negative tolerance.

FINENESS -                  Ratio between mass of gold content and total mass 

                                        expressed in parts per thousand.

FINE GOLD -               Having  Fineness 999 parts per thousand without any negative tolerance.

Consumers can find in chart below different grades of the gold, their fineness and Carat values.

       GRADES FINENESS CARAT

Fine Gold                                    999                                            -

Standard Gold                             995                                            -

958.3                                           958                                           23

916.6                                           916                                           22

875                                              875                                           21

750                                              750                                           18

  708                                              708                                           17

585                                             585                                            14

375                                             375                                              9

For manufacturing the ornaments solders play an important roll. When ever a consumer sells ornaments, the traders make a huge discount in the name of solders known as Tanka in the Indian markets. There are standards for this solders also, it should be of same fineness. Details are described in IS3095. 

Solder of 22 carat is only allowed in the jewelry of 23 carat. 

Solder of the same carat should be used for the jewelry of carats of other descriptions.

As now Hall marking is made mandatory for any type of jewelry. It is duty of the consumers to expose those who are selling gold ornament without Hall Mark i.e. without any guarantee to the consumers. 

Consumers can check on the ornament which is Hall Mark following descriptions. 

1. BIS mark, 

2. Purity grade/fineness, 

3. Assay Centers(Certification Center) identification mark, 

4. Year of marking denoted by letter symbol & Jewelers Mark. 

It is also important to note that following ornaments should not be Hall Marked -

1. Those not assayed by BIS recognized centers.

2. Hollow ornaments filled with base element like cement, lac etc.

3. Gold article on which it is physically impossible to stamp the mark.

4. Jewelry below 9 carat of gold.

So remember when you next go for gold jewelry purchase, make sure your purchase is worth.