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Diwali Gold Buying Tips: 5 Things to Check Before Purchasing Jewellery, Says BankBazaar CEO

Posted on 2nd Nov 2026 02:01 pm by rohit kumar

Buying gold during Dhanteras and Diwali is a long-standing tradition in Indian households. Many families consider the festive season an auspicious time to purchase gold jewellery, coins and other precious items. However, buyers should pay attention to purity, pricing and documentation before making a purchase.

 

Adhil Shetty, CEO of BankBazaar, has outlined five important rules to help consumers make informed and secure gold purchases. From selecting a trusted jeweller to checking the BIS hallmark and understanding buyback policies, these precautions can help buyers avoid unnecessary expenses and potential problems later.

 

Here are five important gold-buying tips to keep in mind this festive season.

 

1. Buy Gold Only From Trusted Jewellers

 

The first rule when purchasing gold is to select a reputed and reliable seller. Buyers should prefer established jewellers or stores that follow recognised purity and billing standards.

 

Reputed jewellery brands generally provide transparent invoices and clear information about gold purity, weight and making charges. Many established retailers also offer buyback and exchange facilities, which can be useful when customers decide to sell or upgrade their jewellery in the future.

 

Consumers should be cautious about purchasing gold from unverified sellers, particularly when they advertise unusually attractive discounts.

 

Digital payment methods are preferable because they create a transaction record. Buyers should always insist on a proper invoice after completing the purchase.

 

2. Check the BIS Hallmark and HUID Number

 

Gold purity is one of the most important factors determining the value of jewellery. Therefore, buyers should check the BIS hallmark before purchasing hallmarked gold jewellery.

 

A BIS hallmark carries important identification details, including the BIS logo, the purity grade and a unique Hallmark Unique Identification (HUID) code.

 

The HUID is a six-character alphanumeric identification code assigned to an individual hallmarked jewellery item. Buyers can use the BIS Care app to verify the HUID and check the details associated with the jewellery.

 

For example, 22K gold contains approximately 91.6% gold, while 24K gold is generally used for coins and bars because of its higher purity.

 

Customers should not rely only on verbal assurances from shopkeepers. Checking the hallmark and verifying the HUID can provide additional confidence about the jewellery being purchased.

 

3. Understand the Gold Rate and Making Charges

 

Gold prices fluctuate regularly due to international market movements, currency exchange rates and other economic factors. Therefore, buyers should check the prevailing gold rate before visiting a jewellery store.

 

The quoted price per gram can differ depending on whether the customer is purchasing 24K, 22K or 18K gold. The final jewellery bill also includes making charges and applicable taxes.

 

Making charges can vary significantly depending on the design, craftsmanship and jeweller. Buyers should ask for a detailed price breakdown instead of considering only the advertised gold rate.

 

Gold coins and bars generally involve lower making charges than intricately designed jewellery. Therefore, consumers purchasing gold primarily for investment purposes should compare these costs before deciding what to buy.

 

Comparing prices and charges across multiple reputed jewellers can also help buyers avoid overpaying.

 

4. Understand Buyback and Exchange Policies

 

Buyers should understand the jeweller's buyback and exchange conditions before purchasing gold. Different retailers follow different policies when customers return or exchange jewellery.

 

Some sellers may apply deductions for purity testing, wastage or other charges, while others may accept only hallmarked jewellery under their exchange programmes.

 

Any deduction, including the often-quoted 5% to 10% figure, should not be assumed to be universal. The actual amount depends on the seller's written policy and the terms of the transaction.

 

Customers should ask the jeweller about the following:

 

Whether old gold from other jewellery brands is accepted.

 

Whether the store offers cash buyback or only exchange.

 

What deductions apply during resale or exchange.

 

Whether stones and other non-gold components are excluded from the valuation.

 

Whether the original invoice or hallmark details are required.

 

Getting these conditions clarified before making a purchase can help avoid unpleasant surprises when selling or exchanging gold later.

 

5. Keep the Invoice and Hallmark Documents Safe

 

The purchase invoice and hallmark-related documents are important records that buyers should preserve carefully.

 

A proper invoice should provide essential details such as the jewellery's weight, purity, gold rate, making charges and applicable taxes. These documents can be useful if the customer decides to resell the jewellery, exchange it or use it as collateral for a gold loan.

 

Buyers should also retain any certificates and supporting documents provided by the jeweller.

 

Keeping both physical and digital copies is a sensible precaution. Customers can scan their invoices and store them securely so that important purchase details remain accessible even if the original documents are misplaced.

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