Gold Loan Auction: Beware of Frauds When Buying Mortgaged Gold!

• Mortgaged gold is auctioned by banks and finance companies if loans are not repaid, following RBI guidelines on minimum auction price (85% of market value).
• Buying auctioned gold, especially from private traders, carries risks like fraud in purity, weight, fake hallmarks, and adulterated metals.
• Goldsmith Kasula Sridhar warns buyers to take precautions, as some individuals mortgage fake gold with fake hallmarks.
• Always personally check gold quality, obtain original receipts and auction documents, and have it examined by a goldsmith.
• It is safer to participate in gold auctions conducted by qualified banks rather than individual traders to avoid potential losses.