Is Your Festive Gold Purchase Legal? Key Checks Before Buying Jewellery in India

New Delhi, October 3, 2025 – As the festive season approaches, gold buying once again takes center stage in Indian households. Whether it’s Dhanteras, Diwali, or weddings, purchasing gold jewellery is seen as an auspicious tradition. But while gold is considered a symbol of wealth and prosperity, buyers often overlook one critical factor – whether the jewellery they are purchasing is genuine, hallmarked, and legally compliant.

In recent years, cases of counterfeit or unverified gold jewellery have surfaced, leaving buyers with financial losses and legal risks. To avoid falling into such traps, consumers need to be aware of the rules, certifications, and smart buying practices that ensure their festive purchase is safe and valuable.

Why Buying Hallmarked Gold Matters

The Bureau of Indian Standards (BIS) has made hallmarking mandatory on all gold jewellery sold in India. A hallmark stamp assures that the purity of gold matches what the jeweller claims. For example, a 22-karat piece should carry a clear hallmark mentioning "22K" or "916."

Without this, you may unknowingly purchase jewellery of lower purity while paying the price of higher-quality gold. Always check for the BIS logo, purity number, and jeweller’s identification mark before finalizing a purchase.

Choosing the Right Jeweller

Festive rush often leads people to buy gold in haste, sometimes from unknown or unauthorized sellers offering “discounts.” This is where most buyers make mistakes. Experts advise purchasing only from certified and reputed jewellers, preferably those registered with BIS.

Buying from trusted showrooms or well-known jewellery chains reduces the risk of fraud, while smaller or unregistered shops may misrepresent purity levels or even sell smuggled gold.

Understanding Pricing and Making Smart Comparisons

Gold prices fluctuate daily based on international market rates. Before buying, check the daily gold rate published by reliable sources or jewellers’ associations. Also, understand the making charges and GST (Goods and Services Tax) applied on your purchase.

Some jewellers add hidden charges that inflate the final price. Comparing rates across different sellers can help you get the best value. A transparent bill mentioning the gold rate, weight, purity, and making charges is a must for legal and safe transactions.

Digital Gold: A Modern Alternative

Apart from traditional jewellery, many Indians are turning towards digital gold investments offered by fintech platforms and banks. Digital gold allows you to buy small quantities online, stored securely in vaults, and redeemable as physical gold later.

However, not all platforms are regulated. Always ensure the provider is credible and backed by authorized institutions. This helps avoid risks of fraud or loss.

Avoiding Illegal or Smuggled Gold

Smuggled gold often finds its way into the Indian market during festivals when demand is high. Such gold is not only illegal but also risky for buyers, as it may lack hallmarking or proper documentation. Purchasing gold without an authentic bill could land buyers in legal trouble. Always insist on a GST bill, which acts as proof of purchase and ensures compliance with Indian laws.

Practical Tips for Safe Gold Buying

Check Hallmarking: Look for the BIS mark, purity number (e.g., 22K916), and jeweller’s code.

Insist on a Bill: A detailed GST invoice is essential for authenticity and resale value.

Verify Jeweller’s Credentials: Buy only from BIS-registered outlets.

Be Cautious with Discounts: Unusually low prices may signal counterfeit or smuggled gold.

Explore Digital Gold Carefully: Use only trusted and regulated platforms.

Final Word

Buying gold during festivals is not just a tradition but also an investment for the future. However, a wrong purchase could mean financial loss, legal complications, or resale difficulties. By checking hallmarking, understanding prices, and insisting on transparent documentation, consumers can ensure their gold purchase is both auspicious and secure.

This festive season, make sure your jewellery box shines not just with gold, but also with peace of mind.