Gold has long been an integral part of Indian households – be it for cultural, investment, or financial purposes. With the rising gold prices and its growing utility as a collateral asset, it has become more than important to understand how pure your gold is. Whether you’re purchasing a jewelry or considering a Gold Loan, the purity of gold ensures you get the best value for your asset. In this blog, we will walk you through simple yet effective methods to check the purity of gold. Read on!
Why Purity Matters in a Gold Loan
Gold Loan is a secured loan where your gold jewelry is pledged as collateral. The higher the purity of your gold, the higher its market value is. Consequently, the larger loan amount you will be eligible for.
How to Check Gold Purity: Simple Methods
Let’s explore the most common and reliable ways to check the purity of gold in India:
1. BIS Hallmark
The most trusted method to check gold purity in India in through BIS (Bureau of Indian Standards) hallmarking. A BIS hallmark certifies that a gold confirms to Indian standard of purity, if it includes:
- BIS Logo
- Purity in the form of karats and fineness
- Assaying center’s mark
- Jeweler’s Identification Mark
2. Density Test
Gold is a dense metal, and its density is around 19.3 g. This test can give a good estimate of gold purity at home or in a jeweler’s store.
Test Procedure:
- Weight the gold item
- Measure its volume by water displacement
- Divide weight by volume to calculate density.
3. Magnet Test
Gold is non-magnetic, so it should not be attracted to a magnet.
How to Perform:
- Bring a strong magnet close to your gold item.
- If it sticks or shows magnetic movement, it’s likely to contain iron or nickel. This indicates that your jewelry has low gold purity in it.
4. Acid Test<Assign H3>
This form of testing uses nitric acid solutions to determine the purity of your gold. Each acid concentration corresponds to a different karat.
Procedure:
- Make a small scratch on the gold surface.
- Apply acid to the scratched area.
- If there’s a reaction that means your jewelry has pure gold in it.
5. Gold Purity Testing Machine
This form of testing is also popularly known as XRF (X-Ray Fluorescence) machine. It is a non-destructive and highly accurate method which is used by many reputed jewelers and lenders. Numerous financial institutions use this technology to ensure transparency during valuation.
Can Gold Purity Impact your Gold Loan Eligibility
Yes, the purity of your gold plays a significant role in determining your Gold Loan eligibility. Here’s how:
- Loan Amount: Higher purity of your gold means higher per gram value which leads you to getting a high loan amount.
- Interest Rate: Lenders may offer better terms for your pure gold since it offers reduced risk.
- Loan Tenure: With accurate purity and value, your repayment options may become more flexible.
To Conclude
Whether you’re buying gold for investment or planning to apply for a Gold Loan, checking its purity is essential. Methods like BIS hallmarking, density testing, magnet testing, acid testing and gold purity testing machines can help you make informed decisions. Remember, in a Gold Loan, your gold isn’t just a family heirloom but an asset. Therefore, ensuring its purity gives you access to better financial support when you need it the most.
Poonawalla Fincorp offers Gold Loan of up to ₹50 lakhs with minimal paperwork and flexible repayment tenure up to 12 months. Enjoy the experience of financial freedom with complete peace of mind!
Frequently Asked Questions
Why is checking gold purity important?
Checking gold purity ensures you get the best value for your gold, whether you're buying jewelry or applying for a gold loan. Higher purity means higher market value.
Can I check gold purity at home without any machine?
Yes, you can perform a few basic tests like magnet test and density test to get a rough idea of your gold’s purity.
Is hallmarking mandatory for all gold jewelry in India?
Yes, as per the latest BIS regulations, hallmarking is now mandatory for gold jewelry in India
About the Author
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
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