A guide to the hallmarking of gold in India.
Government launches mobile app to verify ISI, hallmark quality =
If you are a beginner to investing in gold, you should buy hallmarked gold in India. This is because hallmarked gold is effected and there is a stamp of authenticity on the purity of gold. Hallmarking means the Bureau of Standards Certified Centres assure you of the purity of gold.
At the moment, there are very few hallmarking centres in the country. There is an ongoing demand to increase these centres.
The important thing to look at when gold hallmarking is the logo of the hallmarking centre and the year in which the hallmarking was done. All these hallmarking centres come under the Bureau of Indian Standards.
Beginners investing in gold must understand the various factors that influence gold prices in India. International gold prices are amongst the biggest of these.
These depend a lot on US Fed interest rates, geopolitical tensions, and general buying and selling and demand in the international markets.
For example, when the US Fed raises interest rates, gold prices fall and vice versa. Indian gold prices derive their rates from international prices, and they can impact rates.
The other thing that impacts gold prices is the rupee's movement against the dollar. When the rupee gains against the dollar, gold prices in India become cheaper.
On the other hand, when the rupee drops against the dollar, gold prices become cheaper.
Another factor that impacts gold prices is the local tariffs and import duties on gold. When they are reduced, gold prices drop and vice versa.
It should be understood that inflation and interest rates also affect prices, but these are more like long-term impacts. Prices also have a bearing on the policies of central bankers across the globe.
This is because when there is monetary easing, gold prices tend to go higher, and when there is tightening, they fall. These are far more complicated to understand and should be viewed against a backdrop of prices.
Taxes on gold
If your gold is valued at more than Rs 30 lakh, you will need to pay a wealth tax on gold every year. Remember, not many individuals know of this provision.
The valuation of the gold would be done as of March 31, 2017. Failure to pay wealth tax at 1 per cent of the amount of gold beyond Rs 30 lakhs could also result in seizure.
Gold ETFs and physical gold also attract a capital gains tax of 20 per cent with indexation and, if sold after 36 months, attract a long-term capital gains tax.
So, gold is definitely taxable and you need to pay accordingly. A capital gains tax means that you buy and sell gold at a profit.
Government launches mobile app to verify ISI, hallmark quality = Find below this article
Buying gold in the futures market in India
You can also buy into the gold futures in India. In gold futures, you have to settle your contract before the expiry of the contract.
So, if you buy a folded future with a March contract, you need to square up your position before the end of March.
In a futures contract, you do not pay the entire amount of gold but only the margin money. So, your exposure is many times higher than usual.
However, we wish to state that this is a very high-risk play and, generally, only people who are high-net-worth individuals take a risk in these kinds of markets.
BIS-Care app: Government launches
mobile app
to verify ISI, hallmark quality
BIS-Care app has been launched for users to check the authenticity of products and file complaints against inauthentic ones.
BIS-Care app: What is it? Download for hallmark quality check
The new BIS-Care app will allow users to check and know about the quality of the products that are ISI and hallmark quality-certified.
This will allow users to be aware of the authenticity of products and even file complaints about the products that aren't authentic.
The app is available in both Hindi and English for the ease of use. With the app, users can access the complete Complaint Management System and perform the same tasks as the BIS website.
In addition to this, the government is developing electronic-BIS to further enforce the implementation of the standards. Additionally, a Consumer Engagement portal will also be introduced soon for the online registration of consumer groups, submission of approvals, and more.
BIS-Care app: How to download, how to use?
The BIS-Care app is currently available for only Android users and there is no word on its availability for iOS users. It is available on the Google Play Store and has over 10,000 downloads at the time of writing. Here' how you can download it:
- Head to the Google Play Store on your Android phone
- Search for the BIS-Care app in the search bar
- When the search result appears, tap on it and select the Install option to get it on your device
Using the BIS-Care app is pretty simple; you need to follow simple steps for the one-time registration:
- Once downloaded, open the BIS-Care app
- Enter your name, mobile number and the email ID as well
- Verify the number and the email ID via an OTP and you are good to go
- Following this, you can start verifying the quality of the products and file complaints on issues such as quality of products, misuse of ISI Mark, Hallmark. Registration Mark, misleading ads, and other issues related to BIS
For more details how to invest in GOLD read our other articles also
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