Why are gold prices soaringPosted by Jewels Planet on February 15th, 2023 The appeal of gold is universal. Having gold in possession is a sign of affluence and prestige. People love to flaunt their gold possessions not just in India but all over the world. Gold is also considered sacred and offered for religious purposes as well. It is a common practice to give gold to family and friends on special occasions. Ironically, the yellow metal comes at a very high price. And after the recent pandemic, the prices of gold have risen exponentially. Otherwise, over the past few years we saw a stable rise in gold prices. But why this unexpected hike in gold price, let’s find out together. What makes gold so costly? Gold is a rare metal with some valuable properties. It entails elaborate processes to extract gold and make it ready for use. Additionally, it is a precious metal that has following unique elements to it-
The New Gold Rule The Bureau of Indian Standards (BIS) enforced a New Gold Rule from June 1, 2022. Under this rule, all gold items that one wants to sell must have the Hallmark certification. Earlier Hallmark certification was required only for 14K, 18K, 20K, 22K, 23K, and 24K carat gold pieces. Now, you need hallmarking even for 19K and 21K carat gold. This new rule saves the interests of gold buyers as earlier jewellers could easily pass off fake pieces or inferior quality items as pure gold. This rule applies to gold coins, gold artifacts as well as gold jewellery. Can you Hallmark fake gold? Hallmark certificate is a globally accepted certificate for certifying the purity of gold. The Bureau of Indian Standards is the authorized signatory that issues the Hallmark certificate. Genuine gold sellers have no issues in hallmarking their gold. But can dubious sellers hallmark the inferior quality gold that they sell? Sadly, it is true. In India, it is a common practice where fake jewellers use their own hallmarking machines and pass off the adulterated gold as a real one. Of course, it means that having a Hallmark certificate or hallmarking your gold doesn’t guarantee purity. Is there a solution? The good news is that there are AHCs (Assaying and Hallmarking Centers) that test the purity of gold items. These recognized centers undertake the testing of gold to assess its purity and issue a test report for the same. As a customer, you can take this report to your jeweller and ask him for compensation in case of any discrepancy. On the other hand, if AHC issued you a purity certificate and your gold turns out to be of an inferior value, then AHC is also bound to give you reimbursement. This also gives edge to the customers who want to sell gold for cash in emergency situations. Bottom line Buying gold is a high value transaction. So, it is better to be safe than sorry. Take precautions and be alert so that you are not the victim of any fraud activity. Like it? Share it!More by this author |