Awareness on Gold Jewellery

ASIAN JEWELLERY MANUFACTURING COMPANY

Presented ByLn. Vikas Soni

SELF INTRODUCTION

Completed my Graduation in Electronics from GMR Institute of Technology, Rajam in 2010

Joined Infosys and worked there for 2 years from 2010-2012

Joined Father’s Family Jewellery business in August, 2012.

Joint Secretary – Lions Club of Eluru

INDEX OF CONTENTS

1. Structure of Jewellery Industry2. Points to keep in mind3. Purity / Quality / Carat4. What is Hallmarking gold5. How to identify the mark6. Gold Price7. Wastage and Making Charges

STRUCTURE OF JEWELLERY INDUSTRY

Manufacturer

Wholesaler

Retailer

Customer

a Rs.

(a+b) Rs.

(a+b+c) Rs.

(a+b+c+d) Rs.

Ultimate Loser is the Customer

You will be saved Rs. (C+D) when you purchase directly from the Manufacturer

POINTS TO KEEP IN MIND WHILE PURCHASING GOLD JEWELLERY

Purity- When it comes to purity, most gold has a marking inside that indicates its caratage

Price – The price of gold jewellery is determined by the purity of the gold and by the amount of skill and labour that goes into the piece

Identification- In India, Local law requires that every item of Gold jewellery bears a clear stamp indicating its caratage.

Check 0 on the weighing machine before weighing weight

WHAT IS PURITY/QUALITY/CARAT?

A carat is a unit of purity of gold alloys 24 carat gold is fine (99.9%) 22 carat gold is 22/24=91.67% 18 carat gold is 18/24=75%

22 carat gold is most popular in India and is generally termed as 916

WHAT IS HALLMARKING OF JEWELLERY? Hallmark is a purity certification of gold articles in accordance

with Indian Standard specifications.  Government of India' has identified BIS a sole agency in India

to operate this scheme.  Design of Hallmark on Gold Jewellery is given below

23 carat gold = 95.8%(23/24) 22 carat gold = 91.6%(22/24) 21 carat gold = 87.5%(21/24) 18 carat gold = 75%(18/24) 14 carat gold = 58.5%(14/24)

9 carat gold = 37.5%(9/22)

HOW TO IDENTIFY THE HALLMARK?

BIS hallmark for gold jewellery consists of several components:

The BIS logo. A three digit number (out of a set of six pre-defined values)

indicating the purity of the gold in part-per-thousand-format viz; 958, 916, 875, 750, 585, 375. Thus a BIS 916 hallmark would certify to a purity of 916 per 1000, that is 91.6%, translating to a 22carat purity of gold.[4][5]

Logo of the assaying centre. A code denoting the date of hallmarking. Logo/code of the jeweller.

Ex:

IDENTIFICATION MARK EXAMPLE

BIS Logo

A Year of marking = 2000

916 Jewellery is 916 fineness

Logo of Assaying Centre

Logo of the Jeweller

GOLD PRICE

Every city/town has a jewellery association and all the jewelers follow the price decided by their jewellery association.

Jewellers of Eluru display the rate of 8 gms 22ct i.e 916 gold which is termed as “Kasu”

Gold prices fluctuates on the daily basis.

Some big jewellers follow price by their own on the basis of international market.

WASTAGE AND MAKING CHARGES

Wastage: During the process of making the ornament some amount of gold will be wasted or will be lost while cutting, soldering, melting etc.  Hence the gold gets ‘wasted’ in the manufacture of a jewellery item. These are called wastage charges and jewellery stores generally asks buyer to pay these wastage charges. Generally, the wastage charges are dependent on type of ornament and they range anywhere between 3% to 25%. Wastage charges are expressed as % of weight of gold ornament.

Making Charges: Making Charges are the charges you pay to the Gold Smith to make the Jewel out of raw gold. A good design is a culmination of artistic view and effort to create a wonderful design that attracts the eyes of buyer. So for making such designs, Jewelery stores generally charges the customer with making charges. This varies from design to design based on the complexity. It varies based on jeweller.

VAT: 1% of the total cost of the ornament.

EXAMPLE OF TOTAL PRICE CALCULATION A buys an ornament weighing 25gms

22ct quality from B and this is how B charges A

Weight = 30.000 gms Wastage (8%) = 2.4000 gms Total = 32.400 gms Rate (22ct rate) = 2750 / gm Price = 89,100/- M.c (50/gm) = 1500/- Total Price = 90600/- VAT (1%) = 906/- Total Including vat = 91506/-

GOLD TESTING CENTERS

You can find Gold Testing centers at your place and get your jewellery/gold tested.

ASIAN GOLD TESTING

TYPES OF SHOULDERING

Tankam (No English Translation)

KDM Zinc

Zinc Shouldering is being used widely now in India while preparing gold jewellery replacing KDM shouldering.

HOW YOU MAY GET CHEATED

Check 0.000 while weighing ornament Beware of hollow items Beware of Unsoldered items

CONTACT DETAILS

Vikas SoniGM, Asian Jewellery MFG

Co.3A-12/2-6, Nallamandu St

Main Bazar, EluruWest Godavari Dt, Andhra

Pradesh+91 7569311004