Frequently Asked Questions
Have questions about gold purity, billing, or investing? Find detailed answers compiled by market experts.
What is the difference between 24 Carat and 22 Carat gold?
The principal difference is purity:
- 24 Carat (24K): 99.9% pure gold. It has a bright yellow color but is soft and malleable, making it unsuitable for jewelry. It is mostly sold as bars and coins for investment.
- 22 Carat (22K): 91.6% pure gold, with the remaining 8.4% made of copper, silver, or zinc. These alloy additions make the metal hard and durable enough for everyday jewelry wear.
What are making charges and how are they calculated?
Making charges are the fees charged by jewelers for the labor and artistry involved in designing and manufacturing the ornament. They are calculated in two ways:
- Per Gram Rate: A fixed fee added per gram of gold used (e.g., ₹300 per gram).
- Percentage Basis: A percentage of the raw gold price (ranging from 8% to 25% depending on design complexity).
What is BIS Hallmarking?
BIS Hallmarking is a system established by the Bureau of Indian Standards (BIS) to certify the purity of gold and silver articles. Mandatory in India, a certified article contains the BIS logo, a purity code (e.g., 916 for 22K), and a unique 6-digit alphanumeric HUID (Hallmark Unique Identification) code.
What taxes are charged when purchasing gold in India?
Three kinds of taxes are applicable during gold purchases:
- Import Duty: Levied on raw gold imported into the country.
- GST (Goods and Services Tax): A 3% GST is added to the value of the metal.
- Labor GST: A 5% GST is applied only to the manufacturing labor/making charges component.
Why do gold and silver prices change daily?
Prices fluctuate due to market forces:
- Global Demands: Geopolitical risks and inflation increase demand for gold as a safe-haven asset.
- Currency Fluctuations: Gold is traded in US dollars internationally; a weaker Rupee increases local gold costs.
- Interest Rates: When central banks (like the US Fed) cut interest rates, yield-bearing assets become less attractive, shifting investors to gold, pushing rates up.