Buying gold? Check your carats first

PUNE: Are the people of Pune beingshort-changed in the purchase of gold?This question demands somepondering, particularly as hundreds of Punekars will rush to jewellery shops topurchase gold on Tuesday, as happens every year, on the occasion of GudiPadwa.While Pune Saraf Association president and Ranka Jewellersproprietor, Fatehchand Ranka, has confirmed that jewellers in Pune “chargethe same rate for 23 carat and 24 carat gold�, another prominent jewellerhas challenged this practice, stating that this is unfair to thepeople.Pointing out that there is 4.16 per cent difference in thepurity of 24 carat and the lesser, 23 carat gold, Amrish Jain, proprietor ofRajmal Lakhichand Jewellers, told TNN that “this difference should reflectin the price, which is not happening in Pune�.TheJalgaon-based Jain, who has lately entered the Pune market with a swank,multi-storeyed showroom on Karve road, pointed out that at a number of jewelleryshops, people buying gold of 23 carat or 23.5 carat purity were in fact beingbilled at the rate of 24 carat gold.This was starkly visible in thecase of the vedni ring, which the purchasing public assumes is of the highest24-carat purity. However, the vedni, which is purchased as aninvestment or to melt into an ornament later, bears 23 carat or 23.5 caratpurity at many jewellery shops, although it is being sold at the 24 caratrate.The problem arises when gold purchased at one jeweller isrecycled in some other city or with some other jeweller, who will accept it at alower rate, depending on its lower caratage. “Since 50 percent of gold transaction in India is based on recycled gold, this amounts to amassive loss to the purchasing public, particularly in Pune,� Jain said.When asked about this discrepancy, Ranka told TNN that 24 carat gold, which is99.9 per cent pure, is not commonly available in India as officially, thehighest purity standard adopted by the government is that of 99.5 per cent.“Gold of 23 carat has near about the same purity as 24 caratgold,� he said, adding, “We have been selling gold for over 100years in Pune and have won the trust of the people of Pune.�Ina series on newspaper ads in March, Rajmal Lakhichand Jewellers urged the publicto examine, among other issues, the caratage of gold being purchased and therate it was being billed at.While Ranka described this ad campaignas “negative and misleading�, Jain, on the other hand, said“the misleading factor is the practice of selling 24 carat and 23 caratgold at the same rate�. Jain said the difference of just Rs 200 between 24carat and 22 carat gold was unfair and ought to be as high as 8 per cent.“The difference in purity between 22 carat gold and 24 caratgold is 8 per cent and this should be reflected in the pricing,� hesaid.World Gold Council manager (west) Madhumita Manna Kulkarnideclined to comment on the controversy. “Pune is essentially a 23 caratmarket,� she said, adding that pricing varied from place to place.