How to Sell Old Gold: Get the Best Price

A gold buyer pays for the pure gold in your piece, not for its weight. They weigh it, test or read the karat, and multiply the pure gold content by the day's rate — then deduct their margin. A 10-gram 22K bangle contains 9.17 grams of pure gold, so the buyer pays for 9.17 grams, not 10.

The margin varies by buyer and by market — jewellers buying back their own customers' gold usually offer the tightest margin, while pawnshops and cash-for-gold shops offer the widest. Always get quotes from at least two or three buyers before selling.

Your own jeweller is usually the best buyer: they know the piece, they want your future business, and they buy back at close to the rate. Other jewellers in the same market are the next best — competition keeps their margins honest.

Pawnshops pay the least, because they lend against gold rather than buying it for resale — their business model needs a wide margin. Online gold buyers vary: reputable ones with transparent pricing can be fair, but check reviews and make sure the price is locked before you post anything. Never sell to a stranger from social media.

Fair deductions are the buyer's margin (a small percentage) and the cost of removing stones — which are weighed separately and not paid for as gold. Some buyers also deduct for melting and assaying, which is reasonable for unhallmarked gold that must be tested.

Unfair deductions are the ones you should challenge: charging for 'impurities' on hallmarked gold, weighing in a unit that understates the weight, or quoting a rate well below the day's published rate. Check the day's rate before you go, watch the weighing, and ask for the calculation in writing.

Stones are not gold: a diamond or gemstone in a piece is weighed and valued separately — or not at all, if the buyer only buys gold. Ask the buyer to remove and return stones before weighing, or have them valued separately by a gem dealer. Enamel (meenakari) and other decoration add weight but not gold value, and buyers deduct for them.

Mixed-karat pieces (for example, a 22K chain with an 18K clasp) are bought at the lower karat unless the parts can be separated. If a piece has parts of different karats, ask the buyer to test each part separately.

Check the day's gold rate, gather your invoices (they prove the weight and karat), and remove stones you want to keep. Get quotes from at least three buyers, and compare the total offered — not the rate quoted, which can be dressed up with hidden deductions.

Do not be rushed. A buyer who pressures you to decide immediately is a buyer whose price will not survive comparison. And remember: you do not have to sell everything at once. Sell what you need to, and keep the rest.