Selling Old Gold: Getting a Fair Price

The published rate is where a sale starts, not where it lands. Preparation is what closes the gap.

Step 1 — Get the purity tested independently

A BIS-recognised assaying centre will run a non-destructive XRF test for a modest fee. Knowing you hold 91.6% gold before you negotiate changes the entire conversation. For un-hallmarked family jewellery this is the single highest-value thing you can do.

Step 2 — Understand the weight deduction

You are paid for gold content, not gross weight. Stones, enamel, lac, solder and thread are deducted. Ask for gross and net weight to be shown separately, and watch the weighing.

Step 3 — Expect a deduction from the day's rate

Buyers do not pay the full market rate for old jewellery. There is a genuine refining loss plus the buyer's margin. The size of that deduction varies substantially between buyers, and it is negotiable. Get quotes from at least two.

Step 4 — Consider exchange versus cash

Exchanging for new jewellery at the same shop usually yields a better effective rate than a cash sale, because the jeweller earns on the new piece. That is only an advantage if you wanted new jewellery in the first place.

Step 5 — Get it in writing

Before handing anything over, ask for an itemised offer: gross weight, net weight, purity tested, rate applied, deduction, final payable.

Documentation and tax

Carry ID; larger transactions require it. Gains on the sale of gold can be taxable depending on holding period and cost basis, and without the original purchase invoice the calculation is unlikely to go in your favour. Keep purchase invoices, and check current rules or ask a tax professional.

The pattern worth noticing

Almost every difficulty at the point of sale traces back to a detail nobody clarified at the point of purchase — the weight basis, the hallmark, the invoice. Buying carefully is what makes selling easy.