India is the largest user of gold across the world. This comes as no surprise as Indians are too fond of gold. The fondness of gold has both cultural and social reasons. Gold is associated with the goddess of fortune, the goddess Laxmi; therefore, it is considered sacred. Gold also signifies the social stature in Indian society. Indians stove to buy gold even though gold jewellery price is so high because of above reasons.
Traditionally, gold has also been an essential financial asset in Indian society. Being an integral part of Indian homes, gold can be pawned or sold during a financial crisis. However, as gold is such a precious metal, the chance of people getting underpaid for the jewellery is high. Gold rate today in Bangalore 22k is ₹44,450 for 10g; you can imagine the willingness of some people to con people selling gold. Gold price per gram in Bangalore doesn’t decrease; sure, it has daily fluctuations, but the gold jewellery price has gone from ₹20,000 to 44,000 in 10 years. Selling old gold jewellery can be especially difficult as the owner, more often than not, will have no retail invoice of the jewellery due to varied reasons. The most obvious being that the jewellery in question might be passed down to them from their ancestors.
We will try to create a comprehensive guide for people looking to sell their old gold jewellery.
- Emotional value: The first step when thinking about selling gold jewellery is to evaluate the actual cost of the jewellery. The weight of the gold jewellery does not determine the exact cost. For example, if you have a piece of jewellery that is a reminder of your parents, selling might give you a pang of guilt that you can’t shake off. Consider pawning off the jewellery if it has enormous emotional significance. Make sure that the emotional cost does not outweigh the monetary benefit.
- Know what you have: The second step after making sure you want to sell old jewellery is to know what you have. Gold jewellery uses gold of different purities, which are 24k, 22k, 18k, and 14k, in the decreasing order of purity. The cost might vary substantially for a different type of jewellery. For example, if you live in Bangalore, the gold price per gram in Bangalore might differ by 10%; not only that gold rate in Bangalore might differ from today’s gold rate in Chennai. Similarly, if you find the gold price per gram in Bangalore lower than today’s gold rate in Chennai, consider selling it there if you have a bulky piece to sell. Gold jewellery prices might land you in huge profits even when travelling back and forth.
- Search for the retail invoice: All the reputed gold jewellery shops will ask for the bill without fail. The shops have their reasons for needing the bill before buying the jewellery from you. Also, the retail invoice will help clear any doubts about the ownership of the gold jewellery, and it will also help you establish the authenticity of the product. The retail invoice will also tell you about the gain in the transaction.
- Get multiple appraisals: It is imperative to get your jewellery appraised by several jewellers. An antique or designer jewellery might have a higher cost than the gold in the jewellery. Go to different shops to get a rough idea of how much the jewellery costs.
- Do your research: The buyers will underplay the cost of whatever you sell. It is necessary to know the cost of your jewellery. Use search engines to get the exact price of gold that day as the gold prices might change drastically in a day. Also, include the purity of gold and the city in your search; for example, search ‘gold rate today in Bangalore 22k’.
- Go to a reputed store: After getting the appraisals and the cost of the gold, go to a reputed shop. A sure-shot way of knowing if the shop you selected is reputed is to check if they are a local jewellers trade association member. Also, you should check if they have any existing complaints in the consumer forum about the purchase of gold. The reputed shops will have an accurate weighing scale to get a fair price for your jewellery.
- Be Prepared: Gold jewellery price is generally very high. Be aware that people will try to con you. Secondly, be prepared to get a lesser amount than what you would be expecting. There are several reasons for the lesser amount you will get. Firstly, the jeweller will cut the processing and refining cost of the gold. Both of them can be about 4-6% of the total. And lastly, gold jewellery has huge making/design/labour costs, which can be as high as the price of gold itself. Not to mention the taxes, which you won’t get back.
The above guide will help people get paid fairly for their jewellery and help them cope with the guilt associated with trading the old gold jewellery, especially if the jewellery in the question was passed down to them.
