While many jewellers stocked up on gold, riding the wave of escalating prices, little did they realise that it would crash to all new lows.
Planning to buy gold this festive season? Be a little careful.
After gold and silver prices nosedived a few days back, it is being said that goldsmiths across the country have taken to adulterating the yellow metal.
While many jewellers stocked up on gold, riding the wave of escalating prices, little did they realise that it would crash to all new lows. According to experts, metals like iridium and ruthenium are being mixed up to 6% in a bid to cover the losses. The point to note is that these metals are not used as a replacement of silver and copper which are added in negligible quantities to harden the otherwise soft gold. Other metals often used to ‘alloy’ gold are cobalt, palladium and tin.
To avoid disappointment, apart from the regular checks such as hallmark, buyers are advised to ask for a physical XRF testing, if they are buying from lesser known jewellers.
“These days customers are well-informed and hence are cautious buyers. They will not buy gold unless it is hallmarked, 22 carat and of 91.60% purity. All major jewellers have licences, without which they cannot sell hallmarked jewellery. The smaller stores may or may not have applied for such licences, in which case customers should be wary,” said a spokesperson from MP Swarna Mahal jewellers.
According to Harish Soni, vice chairman, All India Gems and Jewellery Association, there can’t be any impurity or mixing if the gold product is hallmark certified. “Only when a certain jewellery shop is selling at price lower than the market rate, there are chances of it not being pure. Obviously no jeweller will give discount from his own pocket,” Soni said.
However, most experts opine that such practices are universally prevalent in both large and small dealers alike. “Like any other industry, the jewellery sector also has both organised as well as unorganised players. The reputation and management is more important than the size,” said Vinod Hayagriv, managing director of C Krishna Chetty & Sons.
Contrary to expectations, with the massive crash in prices, sales have not picked up. Those in the business feel this is because buyers are anticipating prices to plummet further. It remains to be a wait and watch game.
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