Spending

The Economic Times Wealth, November 7-13, 2011

25

Before you buy jewellery

Purity, carat and cut are some factors you should consider while buying precious metals and stones. This will reduce the chances of being cheated and help you resell jewellery, says Nupur Anand.

Pearl
Current price: `1,500-7,500 (5 carat, round, medium lustre)

Gold
Current price: `28,060/10 g
Purity: This is measured in carats (written as K). The purest form is 24K, though ornaments are made with 18K or 22K gold. This means that other metals have been added to give it strength. Always buy jewellery that is hallmarked and accredited by the Bureau of Indian Standards. This guarantees authenticity and will make it easy to sell gold. Gold is also available in red/rose and white colours, which is due to the alloy used. White gold jewellery uses nickel, platinum or palladium and may need re-plating in 12-24 months, depending on the usage. Avoid gold-plated or gold-washed jewellery, which has a very thin layer of gold. The plating usually wears off fast (unless you use it very infrequently) and the ornaments will look tarnished. Resale value: Gold can be easily sold at the current price and by weight. However, you will not be able to recover the making charges (10-25% of the value of gold). If the jewellery isnt hallmarked, you may have a tough time selling it as there is no proof of purity.

Diamond
Current price: `40,000-55,000 (0.25 carat, round cut, F colour, VS1 clarity)
Purity: The value of a diamond depends on the 4 Cscarat, colour, clarity and cut. The carat is the weight of the stone, while clarity ranges from the most valuable, internally flawless (IF), to imperfect varieties (I1, I2 & I3). Within this range are stones with very slight inclusions (or impurities) (VVS1 & VVS2), very slight inclusions (VS1 & VS2) and slight inclusions (SI1 &SI2). The higher the impurity, the lower the price. A diamond without any colour is rated D and is the most expensive. As the colour increases, the rating changes alphabetically from D to Z, and the value depreciates accordingly. Though diamond is the hardest stone, it has cleavage planes, which means that if it is dropped or hits at a particular angle, it can crack or shatter. This is why it should be cut and set carefully. Resale value: It is difficult to cut and use a diamond again, so it has a low resale value. In fact, if such jewellery is bought without a certificate, it is considered to be almost worthless. The certificate shows how the stone ranks on all the 4 Cs. Most branded stores only buy back the diamonds sold by them. Typically, they pay 85% of the prevailing rate, minus the making charges, which are 7-30% of the jewellerys value.

Silver
Current price: `56,000/kg
Purity: Silver is very soft in its purest form, so copper, zinc or nickel are usually added to give it strength. Copper makes silver harder, but has a tendency to tarnish, because of which the jewellery darkens when it comes in frequent contact with air, water or other elements. Since 2003, some jewellers have begun to mix platinum, which is harder and resistant to tarnish, but also increases the price of the ornament.

The best silver is sold as sterling silver and consists of 92.5% of the precious metal. So, it would be stamped as .925 or just 925. Silver coins have 90% of the metal. Avoid buying jewellery that has less than this purity level. The metal is measured in grams or ounces. The making charges vary from 10% to 100% of the jewellerys value, depending on the intricacy of the design. Resale value: According to jewellers, most fraud cases take place in silver jewellery and wares. So you should buy these only from reputed jewellers, who have credible buyback policies. Silver is resold on the basis of its weight and as the exchanged metal is usually melted to be reused, you will lose out on the making charges. The only exception to this rule is if you have antique silver jewellery.

Purity: Pearls are of three varietiesnatural, cultured and imitationof which, natural ones are the most rare and valuable. To test the purity of a pearl, rub it against your teeth. It should feel slightly gritty; if it is smooth, it is likely to be an imitation. Their sizes range from 4-18 mm, though the most common size is 710 mm. In India, their weight is measured in ratti (0.6 carat) A pearls value is also determined by its shape and lustre. A round pearl is deemed to be better than an oval one. You can get freshwater pearls (natural or cultured) with unusual shapes. The more lustre the pearl has, the higher will be its value. To compare this, move your finger close to the pearls. A clearer Current price: `2,529/g reflection indicates higher lustre. A Purity: Platinum is also pearl with a pink overtone is Is letter of mixed with other more expensive than one with authority the a blue or green overtone, and metals to make jewellsame as power a naturally hued pearl will ery. These are usually of attorney? fetch a higher price than a the metals from the Page 13 dyed one. platinum group Resale value: Pearls usually do (iridium, palladium, not have any resale value unless ruthenium, rhodium and they are unique, natural ones. osmium), though cobalt may also be used. The jewellery is marked with a number between 800 and 950, which correlates to the percentage of platinum used (8095%). Pieces with a rating of 95% are marked simply as plat or platinum, while those with a higher concentration of other metals will mention them. For instance, .80plat/ir means the jewellery has 80% platinum, while the balance is composed of iridium. Current price: `8,500-17,500 The precious metal is also (0.3 carat, round cut, A or emerging as an investment standard quality) option, which is why a few highPurity: Many gemstones are used to end stores now offer platinum make jewellery, but only three are bars and coins. considered precious: ruby, emerald Resale value: Jewellers buy back and sapphire. Their prices depend platinum on the basis of weight, on the colour, cut, clarity and carat. but prefer only the ornaments One carat is equal to one-fifth of a sold by them, minus the making gram. Such gemstones can be natucharges (which range from 10rally mined or created in a lab. 30%). So, make sure you collect Natural stones are rare and the authenticity certificate while expensive, so you should get an buying platinum jewellery.

Platinum

Precious stones

authenticity certificate for them. The origin of the gemstone also affects its price. So a Burmese ruby or a sapphire from Kashmir will fetch a higher price. Usually, gemstones are treated with heat or dye to improve colour and clarity, or with wax to cover surface fractures. This is an accepted practice and does not diminish the stones value. Resale value: The demand for gemstones is low, though some jewellers may buy natural ones, especially if they come with an authenticity certificate. You will not get more than 85% of the stones value. Also the stone will be valued separately from the metal (gold/ silver) in which it has been set.

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