Gold Jewellery Buying Guide for Coimbatore
No scriptGold is part of almost every Coimbatore family's milestones - weddings, valaikaappu, naming ceremonies, festivals. Kovai has large jewellery showrooms on the main shopping streets and many smaller, long-standing family jewellers. Whichever you choose, a few checks protect your money. This guide explains the hallmark, the HUID code, charges and the bill.
This is a buying guide, not investment advice. For gold as an investment, speak to a qualified financial adviser.
Know the BIS Hallmark
Hallmarked gold jewellery in India carries three marks (as of the rules in force since April 2023):
- The BIS logo (a triangle-shaped mark).
- Purity in carat and fineness, for example 22K916 (22 carat), 18K750 (18 carat) or 14K585 (14 carat).
- A 6-digit alphanumeric HUID (Hallmark Unique Identification), unique to that piece.
According to the Government of India, from 1 April 2023 hallmarked gold jewellery and artefacts may be sold only with the 6-digit HUID. Older 4-mark hallmarks without HUID on jewellery already at home remain valid for you as an owner; the rule is about what shops sell.
Some very light items and certain categories may be exempt from mandatory hallmarking; ask the jeweller if an item has no hallmark and why.
Verify the HUID Yourself
Install the BIS Care app (from the Bureau of Indian Standards) and use "Verify HUID". Enter the code on the piece; the app shows details such as the jeweller's registration, the purity and the type of article. If the details do not match, ask the shop before paying.
The code is small; ask the shop for a magnifier.
Understand the Price
A gold jewellery price usually has these parts:
| Part | What it is |
|---|---|
| Gold rate | Today's rate per gram for that purity (22K or 18K) |
| Weight | Net gold weight of the piece |
| Making charge / wastage (VA) | Labour and loss in making; as % or per gram |
| Stones | Separate charge for stones, which should not be counted as gold weight |
| GST | Tax as per current rules |
Ask for each part as a separate line. Two shops with the same gold rate can give very different final prices because of making charges and wastage. For machine-made light jewellery the making charge is often lower than for detailed handmade work.
Stones and Weight
- Stone-studded jewellery should show gross weight, stone weight and net gold weight separately.
- You pay the gold rate only on net gold weight; stones are charged separately.
- For diamonds, ask for a certificate from a gemmological laboratory and read what it states.
Check the Weighing
The shop's scale should be clearly visible to you. Ask them to weigh the piece in front of you and note the weight on the bill.
The Bill Must Show
- Shop name, GSTIN and address.
- Description of each item, purity, HUID, gross and net weight.
- Gold rate used, making/wastage, stone charges, GST.
- Total, and payment mode.
Keep the bill safely. It is needed for exchange, resale, insurance and any complaint.
Old Gold Exchange
When you exchange old gold, ask:
- How they test purity (many shops use an XRF machine; ask to see the reading).
- What deduction they apply, and whether it differs for hallmarked and non-hallmarked old gold.
- For the exchange value to be written on the new bill.
Gold Schemes
Many jewellers run monthly savings schemes. Before joining, read the terms: what you receive at the end, whether making charges are waived, what happens if you stop paying, and who runs the scheme. If in doubt, ask a chartered accountant or financial adviser; our guide on choosing a chartered accountant in Coimbatore may help.
Wedding Jewellery
For weddings, start early, compare making charges on the heavier pieces, and ask whether the shop resizes or adjusts pieces after purchase. The bride's jewellery also needs to match the outfit, so involve your tailor and makeup artist in the planning.
Safety
- Avoid carrying large amounts of cash; pay by bank transfer or card where possible.
- Do not share OTPs or bank details with anyone calling about "gold offers".
- Store jewellery in a bank locker or a proper safe.
Red Flags
- No hallmark or HUID on items that should have one.
- A bill without purity, weight or HUID.
- Stones counted in gold weight.
- Pressure to buy immediately because "the rate will go up tomorrow".
Next Steps
Check the hallmark and HUID on every piece, verify it in the BIS Care app, compare making charges across two or three shops, and keep a detailed bill. You can find jewellers listed in the Kovai Yellow Pages directory.
Frequently Asked Questions (FAQ)
What is HUID on gold jewellery?
HUID (Hallmark Unique Identification) is a 6-digit alphanumeric code marked on each hallmarked gold item. Since 1 April 2023, hallmarked gold jewellery sold in India must carry the BIS hallmark, the purity mark and this 6-digit HUID. You can check the code with the 'Verify HUID' option in the BIS Care app.
What does 916 gold mean?
916 means a fineness of 916 parts of gold per 1,000, which is 22 carat gold. On hallmarked jewellery it appears as 22K916. Similarly, 18K750 means 18 carat and 14K585 means 14 carat.
What are making charges and wastage?
Making charges pay for the work of turning gold into jewellery. Some shops show them as a percentage of the gold value, a fixed amount per gram, or as 'wastage' (VA). Ask the shop to show the gold rate, weight, making or wastage, stone charges and GST as separate lines so you can compare shops.
What if hallmarked jewellery is found to be of lower purity?
Under the BIS rules, if hallmarked jewellery is found to be of lower purity than marked, the buyer is entitled to compensation of twice the difference in value for the shortage, plus testing charges. Keep the bill and contact BIS through the BIS Care app or website to raise a complaint.