Selling or Exchanging Old Gold: 7 Things to Know
When you sell old jewellery, you are paid for the gold content only. Making charges you paid at purchase are not returned, and most jewellers also make a small deduction.
1. You are paid on pure gold
The jeweller tests the purity (usually with an XRF machine) and pays for the gold at the day's rate for that purity. Hallmarked pieces make this simple.
2. Expect a deduction
Deductions of 2–10% for melting loss are common. Exchanging at the shop you bought from, with the original bill, usually gets the lowest deduction. Ask for the percentage before testing.
3. Stones are not paid as gold
Stones, beads and lac are removed from the weight. Only the net gold weight is paid for.
4. Exchange often pays better than cash
Many jewellers give a better rate if you buy new jewellery in exchange. For cash sales of large amounts, payment is usually made by bank transfer.
5. Bring the bill and ID
An old invoice helps prove purity and ownership. For larger amounts, the jeweller may ask for PAN or other ID as required by law.
6. Check the day's rate first
Look up today's rate before you go so you can see exactly what deduction is being applied.
7. Get the numbers in writing before melting
Have the purity reading, net weight, rate and deduction written down and agreed before the piece is melted. Melting cannot be undone.
| Example | Amount |
|---|---|
| Net weight 20 g, tested 22K | |
| Rate ₹12,800/g | ₹2,56,000 |
| Deduction 3% | − ₹7,680 |
| Payable | ₹2,48,320 |