Artificial gold is used extensively in fashion and costume jewellery due to its affordability. Here are the common types:
- Gold plated jewellery - Base metal coated with a thin layer of gold using electroplating. Cost-effective but prone to tarnish.
- Gold filled jewellery - Contains a thicker layer of gold over base metal, making it more durable than plated jewellery.
- Gold vermeil - Sterling silver coated with a thick layer of gold, offering a more luxurious appearance.
- Gold tone jewellery - Metal coated with a gold-coloured paint, giving a gold-like appearance without any actual gold content.
- Gold alloy - A combination of metals that resembles gold but lacks actual precious metal content.
Bajaj Finance does not consider any of these types of artificial gold for online gold loans due to their lack of value and gold content.
Difference between artificial gold and pure gold
Artificial gold and pure gold differ significantly in composition, value, and usability. Pure gold, such as 24K gold, contains 99.9% pure gold and holds high market value. It is durable, resistant to tarnish, and is used for both investment and jewellery purposes. In contrast, artificial gold is made from base metals coated with a thin layer of gold or a gold-like alloy.
While pure gold can be sold or pledged for a gold loan, artificial gold lacks that value and cannot be accepted as collateral. Pure gold maintains its shine and value over time, while artificial gold may tarnish or corrode. Bajaj Finance only accepts high-purity genuine gold for loans, ensuring fair valuation and secure storage.
How is artificial gold made?
Artificial gold is manufactured using various techniques to imitate the appearance of real gold. One of the most common methods is electroplating, where a base metal like brass or copper is immersed in a gold solution, and an electric current is applied to deposit a thin gold layer on the surface.
Another technique involves gold filling, where a thicker gold layer is bonded mechanically to a base metal, making it more durable than electroplating. In some cases, artificial gold is made from gold-coloured alloys that mimic the look of real gold without containing any actual gold. These methods produce jewellery that looks aesthetically appealing but lacks the intrinsic value of pure gold.
How to identify artificial gold?
Identifying artificial gold requires careful examination and testing to distinguish it from real gold. Here are some common methods:
- Magnetic test - Real gold is not magnetic, while most artificial gold items get attracted to magnets.
- Acid test - A small scratch is made, and acid is applied to see if it reacts. Real gold remains unaffected.
- Weight comparison - Real gold is denser and heavier than artificial gold.
- Hallmark check - Real gold items have hallmark stamps indicating purity, such as “24K” or “18K”.
- Professional appraisal - Jewellers and experts use electronic gold testers or XRF machines to determine purity.
Does artificial gold have any resale value?
Artificial gold generally lacks resale value because it does not contain substantial amounts of actual gold. Even if it is gold-plated or gold-filled, the underlying base metal significantly reduces its market value. Most jewellers and financial institutions do not purchase artificial gold or exchange it due to its minimal gold content.
Some high-quality artificial gold items may hold aesthetic value, but they cannot be sold for their gold content. This lack of resale value makes them unsuitable for obtaining a gold loan. Bajaj Finance does not consider artificial gold for loan collateral, as it only accepts high-purity genuine gold to ensure fair valuation and secure lending.
Can you get a loan against artificial gold?
No, Bajaj Finance does not provide loans against artificial gold. The primary reason is that artificial gold lacks genuine value and is made from base metals like brass or copper with a thin layer of gold plating. Since it does not retain its worth over time, it is unsuitable as collateral.
Customers looking to secure a loan are encouraged to pledge real gold, which guarantees better valuation and transparent processing. Opting for an online gold loan through Bajaj Finance ensures quick application and disbursal with secure storage of pledged gold.
Why is artificial gold popular in fashion jewellery?
Artificial gold is immensely popular in fashion jewellery due to its affordability and visual appeal. It provides a cost-effective way to achieve the look of gold without spending a fortune. Available in various trendy and stylish designs, artificial gold jewellery caters to fashion enthusiasts who seek variety without making a long-term investment.
The lightweight nature of artificial gold makes it comfortable for daily wear and suitable for creating bold statement pieces. As it can be produced in bulk and styled into unique designs, it remains a favourite in the fashion industry. Despite its popularity in accessories, artificial gold is not accepted for loans by Bajaj Finance, which only deals with high-purity real gold.
How to take care of artificial gold jewellery?
Taking proper care of artificial gold jewellery is essential to maintain its shine and durability. Although it lacks the intrinsic value of pure gold, preserving its appearance can extend its usability and aesthetic appeal. Artificial gold jewellery is prone to tarnishing and fading due to exposure to moisture, chemicals, and daily wear and tear. To keep it looking new, follow some simple care tips.
First, always store artificial gold jewellery in airtight containers or pouches to minimise exposure to air and moisture. Use soft, non-abrasive cloths to gently wipe the jewellery after each use to remove oils and dirt. Avoid contact with perfumes, lotions, and cosmetics as they can react with the metal and cause discolouration. Never wear artificial gold while swimming or during heavy physical activities, as chlorine and sweat can degrade the finish.
Cleaning artificial gold requires a gentle approach. Use mild soap and lukewarm water to clean the pieces and avoid harsh chemicals. Dry them thoroughly before storing. Additionally, consider using a jewellery protective spray to add a layer of protection against tarnish. Taking these precautions can significantly extend the life of your artificial gold jewellery, keeping it shiny and appealing for longer periods.
Can you get a gold loan against artificial gold?
No, you cannot get a gold loan against artificial gold. Bajaj Finance does not accept artificial gold as collateral because it lacks intrinsic value. Artificial gold is typically made from base metals coated with a thin layer of gold or a gold-coloured alloy, making it unsuitable for lending purposes.
Gold loans are provided based on the gold content and purity of the pledged item. Since artificial gold does not contain substantial real gold, it is not eligible for loans. Bajaj Finance strictly deals with genuine gold jewellery. The pledged gold undergoes thorough testing to determine its purity and value before loan approval.
For those seeking quick and convenient funding, Bajaj Finance offers an online gold loan facility where borrowers can pledge genuine gold and receive funds with convenient repayment options. The transparent valuation process ensures borrowers get the maximum value against their pledged assets.
Why do lenders not accept artificial gold for loans?
Lenders, including Bajaj Finance, do not accept artificial gold for loans because it lacks intrinsic value. Unlike pure gold, which retains significant worth in the market, artificial gold is made from base metals coated with a thin gold layer or a gold-like alloy. As a result, it does not meet the quality and value standards required for securing a loan.
The primary reason lenders reject artificial gold is the risk associated with its low market value. Gold loans are granted based on the gold's purity and weight, which guarantees the lender’s security in case of default. Since artificial gold does not hold any real gold content or resale value, it is deemed unfit as collateral.
Bajaj Finance offers
online gold loans only on genuine gold items, ensuring customers receive fair valuation and competitive interest rates. The secure storage of pledged gold also guarantees the safety of the borrower’s jewellery during the loan tenure.
Gold loan eligibility – Is artificial gold considered?
Gold loan eligibility is determined by the purity, weight, and value of the pledged gold. Financial institutions like Bajaj Finance strictly consider only genuine gold with high purity levels, 18-22 karats, to grant loans. Artificial gold, which lacks substantial gold content, is not eligible for securing a gold loan.
Artificial gold is typically made from brass, copper, or nickel, coated with a thin layer of gold or a gold-coloured alloy. This manufacturing process makes it visually appealing but devoid of market value. As a result, it cannot serve as collateral for any type of loan. Bajaj Finance ensures that all pledged gold undergoes accurate testing to determine its purity and authenticity before approving the loan.
By opting for genuine gold jewellery, customers can maximise their borrowing potential. The online gold loan application at Bajaj Finance is fast and convenient, allowing customers to secure funds without delay. Bajaj Finance’s transparent valuation process ensures that borrowers receive the best possible loan amount against their genuine gold jewellery.
Click here to check your gold loan jewellery and get the maximum value for your jewellery.
