When people in India are in dire need of cash, people often turn to monetize their gold holdings- especially jewelry. In most cases, it has been observed that money encashed on selling precious metals tends to be much lower than one's expectation.
To avoid further disappointment and cheats, the following are the few checks before selling gold ornaments.
1) Retain invoice
When one goes to sell jewelry, a good jeweler will always ask for the purchase invoice or document. In case of any disputes regarding purity etc., if one is heading to the same shop from where the person brought the piece, years before; the retailer won't be in a position to contest, as the details of the same will be clearly stated in the bill of purchase.
2) What's it worth?
It is very important to have a proper understanding of the worth of gold that one intends to sell. For this reason, one must take quotes from multiple shops or stores to understand the current market rate of yellow metal.
There can be quite some difference between the quotes secured since there are no standardized methods that can be used to determine the selling price of gold. One must get at least three to four quotes, such that one can fully appraise the value of the jewelry and settle for the highest price possible in the selling market for the piece you are parting with.
3) Check purity
The purity of gold jewelry got established through hallmarking. So before one sells its precious metal, check whether your jewelry is hallmarked or not. Any jewelry that bears a 916 hallmark means 91.6% purity of gold for 22-carat gold. There is no authenticity of the purity of a non-hallmarked gold. Jewelers would anytime prefer a 916 hallmarked gold than a non-hallmarked one.
Now to establish the purity of the yellow-metal for the jewelry that is not hallmarked, one must take it first to a store that has a carat meter and get the result of purity. In case, you want a neutral ground; if you are a Gold Buyer In Gurgaon or Delhi, you can avail of the services of Gurgaon Purity Lab, located at Sector 56.
Post testing the gold ornament, a certificate with the details regarding the proportion of various other elements (silver, zinc, nickel, copper, etc.) other than gold in that jewelry along with its final purity (in karats) will be issued.
4) Deciding the final price
For deciding the price gold shops which make use of the yellow metal will first melt the jewelry in an induction furnace and the gold available after that which is free of any impurities are taken. This entire process is done at an emblematic cost which will be deducted from the final price of gold. The range of deduction varies between 3-5%.
In some other cases, shops have a decided sell price for every 10 grams, in the same manner as that of a buy price. It is generally observed that the selling price tends to be lower than the buy price by 6-7%.
Finally, remember, in the process of selling gold jewelry, one will lose out on the entire making/labor charge paid at the time of purchase (which forms a major chunk of jewelry price) and also the tax paid.
5) Where to sell?
Well, one should be aware of all the available options while selling their precious metal. One of the most common options available to a person is online dealers and local precious metal dealers. Online Dealers usually seemed to offer better rates. Selling your gold online provides you with a feeling of ease and comfort. Even then, one must take the necessary steps while choosing an online buyer. If you pick to sell your gold Jewellery to an online physical store, don't forget to check their customer reviews before finalizing the sale.
The best option is to go to a Reputed Jewelry Buyer as the chances of getting a fair price (market value) is the highest. However, there's a small glitch here in the system. As a policy, several stores will buyback only those pieces of jewelry which have been brought from them and not that of other stores even if you possess the bill of the item to avoid any fraud.
In India, pawnshops/ online gold buyers are the other option where one goes in times of emergency. But please note that these shops often indulge in malpractices and one may end up getting the reduced price for one's possession.
