1 Gm gold Jewellery - Myth BUSTED!
Do we make 1gm gold South Indian jewellery? If I got a penny for every time I get asked this question, I would be a millionaire (well, almost).
My answer would always have been a confident no (and it still is). I did not know what 1 GM Gold Jewellery was - it always sounded like an insignificant marketing scheme. I often wondered if the jewellery probably had 1gm of gold. And if so, then how was it made? But I never really made the effort of discovering the truth.
But eventually my interest peaked. I realized that I have been in the jewelry industry for the last 15 years, and it is quite embarrassing that I did not know this. So, it lead to my research and here’s the scoop.
What is 1gm gold jewellery?
In very simple terms, 1 gm gold jewellery are jewellery pieces which are coated with gold polish (which has 1 gm gold). So only the layer of the polish has 1 gm gold. The gold polish that has 1 gm of 22K gold should essentially amount to approximately Rs. 4700 at least (as per today, the value of 22K is Rs 4700 per gm).
The rest of jewellery is made with any metal with or without stones.
What are the benefits?
As advertised, 1 gm gold jewellery is sturdier than other imitation jewellery. But this is not necessarily true. The sturdiness of the jewellery can never depend on the polish, since the polish eventually wears off.
Simply put, 1 gm gold jewellery has none.
If the jeweler says that his collection has resale value, then he/she should be able to buy it back from you. If he/she refuses to buy it back, that means it does not have any resale value.
Let me break it down.
The cheapest 1 gm gold jewellery that I could find is of Rs 79 only.
This is the link
The cost of the jewellery should be the base price of the jewellery plus the cost of 1 gm gold that is mixed in the polish.
Let’s say the base price is X.
As of today, the value of 1 gm of 22K gold is approximately Rs 4700.
So, the jewellery should be
X + Rs 4700 = Rs 79
X = Rs 4700 – Rs 79
= - Rs 4621
The jeweler is selling the piece at a major loss.
Therefore, it is not possible for this piece to have 1 gm gold, not in the base metal or in the polish.
The cheapest 1 gm gold jewellery must be Rs 4700 or more, for it to actually have 1 gm gold.
Credit: St. Xaviers, Jaipur
Then why say it has 1 gm gold?
1 gm gold jewellery is only a marketing tactic. No jewellery apart from gold & diamonds have resale value. The term 1 gm gold makes the buyer believe the jewelry has intrinsic value and upon reselling it in the future, they will get some money back - making a piece look more attractive.
Is it low in cost?
In India, buyers want jewellery to have resale value. Because of which, the karigars often hide making costs, make up some unreasonable costs, or they will provide less than promised.
That being the case, making the price of 1 gm jewellery a point of dispute, like any other piece of jewellery.
Do not buy jewellery keeping in mind that it has resale value. One should purchase jewellery depending on their need & desires. Any jewellery, apart from gold & diamonds, most likely will not fetch you any return in the future.
However, buyback policies are a completely different story. Buyback policies differ from one jeweler to another. Before buying, make sure you are aware of their refund/exchange & buy back policies.
Many jewelers have good quality 1 gm gold jewellery. The quality varies from jeweler to jeweler. I would suggest not to focus on the fact if the jewellery has 1 gm gold or not. The term “1 gm gold” does not hold any value. If you like the jewellery & the price, then go ahead with it.
This is my 1 gm of advice.
What do you think?
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