Accumulating gold little by little

Set your eyes on a necklace but put off by the huge payout it demands? Read further to know how you can pick it up over time.

Many jewellers will offer what is called a gold savings scheme. Here, you pay a fixed monthly amount to the jeweller, who in turn buys gold at the prevailing price on the deposit day. At the end of the tenure of the scheme, the jeweller pays a bonus. You can then buy jewellery depending on the gold accumulated over the period.

For instance, say you pay Rs 2,000 per month for 11 months and the installment for the 12th month is paid by the jeweller as bonus. At the end of 12 months, you would have gold worth Rs 24,000. Some jewellers may ask you to pay installments for all the 12 months and offer a bonus on the accumulated amount.

This process allows you to average out the purchase price by buying the metal each month. Go to a jeweller who offers a reasonable range in terms of design. In case you have a transferable job, opt for a jeweller who has multiple branches.
If you are worried about whether the jeweller is quoting you the correct rates, there is a way to check them.

The All India Gems and Jewellery Trade Federation has started a facility whereby buyers can access the actual rate by way of an SMS. To know the rates for a particular day, SMS “GOLD” to 575758 and you will get an immediate reply about the price per gram of 22- and 23-karat gold for hallmarked jewellery for that particular day.

“All India Gems & Jewellery Federation represents the country’s retailers, manufacturers, miners, wholesalers, gemstones and diamond cutters, trade media and bullion traders,” says chairman C Vinod Hayagriv.

When choosing a jeweller, check whether he holds a licence for hallmarking.
This licence allows the jeweller to get the gold ornament tested for purity with laboratories of the Bureau of Indian Standards (BIS). Once your jewellery is moulded, the jeweller will send it to BIS laboratories located in eight Indian cities — including Mumbai, New Delhi, Chennai and Kolkatta — for testing its purity. Note, however, that a jeweller who does not have a BIS licence cannot get ornaments tested at BIS labs.

At the BIS laboratories, a miniscule part of the ornament is melted and tested through a digitised process, wherein the amount of gold and other metals such as  silver and copper — which are added to get a better mould — are indicated.

Once the purity is confirmed, BIS stamps its mark on the rear of the ornament. The stamp consists of a number, outlined with black ink, embossed on the jewellery. The BIS mark on gold jewellery indicates that the gold ornament contains 91.6% of gold, also called "916 gold jewellery", with the balance weight being a mixture of silver and copper.