Dhanteras Gold: 3 Risks of Buying from Grey Market

Nearly 1 in 3 Indians plan to buy gold this Dhanteras from informal sellers to avoid high import duty prices. Here's why that shortcut can cost you far more than you save.

Here's what happened: A consumer survey found roughly 30% of Dhanteras gold buyers this year plan to purchase from informal or grey-market channels, citing lower prices driven by high import duties on gold.. India's gold import duty structure — currently among the highest applied in recent years — has widened the price gap between licensed jewellers and unregulated sellers, pushing price-sensitive buyers toward riskier sources.. BIS hallmarking with a 6-digit HUID code has been mandatory for all gold jewellery sold in India since April 2023, meaning any seller skipping this is operating in violation of Indian standards law..

What you should do: Check every gold piece for a 6-digit HUID code stamped on it — then verify it on the BIS Care app before paying a single rupee.. Compare the 'making charges' separately from the gold rate — grey-market sellers often show a lower gold price but hide inflated or vague making charges that close the gap.. If buying gold for investment rather than jewellery, consider Sovereign Gold Bonds or Gold ETFs through a SEBI-registered broker instead — zero purity risk and no making charges at all..

Pro tip: Licensed jewellers must give you a bill showing gold purity, weight, and HUID. No bill means no legal recourse if you are cheated — always insist on a GST invoice.