Things to Know Before Selling Old Gold

Selling gold is where the details you ignored at purchase come back.

1. Know what you are selling

Get the purity tested before you negotiate. A BIS-recognised assaying centre will do an XRF test for a small fee. Walking in already knowing you have 91.6% gold changes the conversation.

2. Gross weight is not what you get paid for

Stones, enamel, lac filling, solder and thread are deducted. For heavy traditional pieces this deduction can be substantial. Ask for the net weight to be shown separately, and ask to watch the weighing.

3. Expect a deduction from the day's rate

Buyers do not pay 100% of the market rate for old jewellery — there is a refining loss and a margin. The size of that deduction is negotiable and varies a lot between buyers. Get quotes from more than one.

4. Cash versus exchange

Exchanging old gold for new jewellery at the same shop usually gets you a better effective rate than a cash sale, because the jeweller makes their margin on the new piece. Whether that is actually better for you depends on whether you wanted new jewellery anyway.

5. Hallmarked gold sells better

If the piece carries a BIS hallmark and you have the original invoice, you have removed the buyer's uncertainty and you should be paid accordingly.

6. Documentation and tax

Carry ID. Larger transactions require it. Selling gold can attract capital gains tax depending on how long you held it and what you paid — keep the original purchase invoice, since without a cost basis the calculation goes against you. Check the current rules or ask a tax professional.

Before you hand anything over

Get the offer in writing, itemised: gross weight, net weight, purity tested, rate applied, deduction, and final payable.