Plain-English definitions of the terms used on this site and across the Indian jewellery and bullion market. Each term has a permanent anchor link — copy the URL from the heading to share a specific definition.
24-karat gold is 99.9% pure (also written as 999 fine). It is the bullion standard used for coins, bars and digital gold. Too soft for daily-wear jewellery, it is the format of choice for pure investment exposure to the gold price.
22-karat gold is 91.6% pure gold alloyed with copper or silver for hardness — hence the 916 hallmark stamp. It is the Indian jewellery standard; almost all hallmarked rings, chains and bangles are 22K.
18-karat gold is 75% pure (750 hallmark). The added alloy makes it harder than 22K, which is why it is preferred for diamond and gemstone settings where prongs must hold securely.
A purity certification stamped on jewellery by the Bureau of Indian Standards (BIS). A 916 stamp confirms 22K, 750 confirms 18K, 999 confirms 24K. Mandatory for all gold jewellery sold in India since April 2023.
A six-digit alphanumeric code assigned to every hallmarked piece since 2021. Each HUID is unique to one piece of jewellery and is registered in the BIS database — you can verify it via the BIS Care app before buying.
The Indian Bullion and Jewellers Association. IBJA publishes a domestic gold and silver fix twice each business day (12:00 and 17:00 IST), which most retail jewellers and banks use as their reference rate.
The price for immediate delivery of a metal, quoted on the international market. Gold and silver spot prices are set in USD per troy ounce on the London Bullion Market and COMEX; Indian rates are derived from spot plus import duty, GST and dealer margins.
A traditional South Asian weight unit equal to 11.6638 grams. Often used in older bills and in some regional bullion markets. One 'sovereign' or 'pavan' is roughly 8 grams; one tola is roughly 1.5 sovereigns.
Eight grams of 22K gold, the most common jewellery unit in Kerala, Tamil Nadu and Karnataka. Originally based on the British gold sovereign coin. Often used to quote chains, bangles and wedding sets.
The international bullion weight unit, equal to 31.1035 grams. International gold and silver spot prices are quoted per troy ounce. One kilogram equals 32.151 troy ounces.
The purity of a precious metal expressed in parts per thousand. 999 fine = 99.9% pure; 916 fine = 91.6%; 750 fine = 75%. Equivalent to the karat system but more precise.
Karat (K) is a measure of gold purity — 24K is pure gold. Carat (ct) is a measure of gemstone weight — one carat equals 200 milligrams. The two are unrelated despite the similar spelling.
Gold lost during shaping (cutting, melting, polishing), added to a jewellery bill as a percentage of the metal weight. Typical range: 5–12% for machine-made pieces, up to 25% for intricate handmade work. Added before making charges and GST.
The jeweller's labour fee for converting raw gold into jewellery. Quoted either as a percentage of metal value (often 'with wastage', i.e. on metal + wastage) or as a flat ₹/gram. Branded retailers typically charge 10–20%; local jewellers vary widely.
India levies 3% GST on the gold value (metal + wastage) and 5% GST on making charges. Both are typically itemised on the bill. Use the bill verification calculator on the home page to check that both lines are correct.
The Multi Commodity Exchange of India. Indian retail and institutional investors trade gold, silver and copper futures here. MCX prices closely track international spot prices and are the basis for most domestic commodity hedging.
The London Metal Exchange, the world's largest market for base metals including copper, aluminium, zinc and nickel. The LME cash settlement is the global reference for the copper rate.
The price of one ounce of gold divided by the price of one ounce of silver. Historically averages around 60. A ratio above 80 is sometimes read as silver being undervalued relative to gold; below 50 as silver being expensive.
Gold, silver or platinum in bulk form — bars and coins of certified purity — as distinct from jewellery. Bullion is priced at (or very close to) the spot rate, with minimal making or design premium.
92.5% pure silver, alloyed with copper for hardness. The global jewellery standard. Most retail 'silver jewellery' is sterling, priced at roughly 92.5% of the 999 fine silver rate plus making and GST.
95% pure platinum, the BIS-hallmarked standard for platinum jewellery in India. Administered jointly by BIS and the Platinum Guild India (PGI).
