People in India sell gold every day. Most get less than they should.
Every month, thousands of families sell their old gold — inherited jewellery, broken bangles, unused coins. Most walk away with less than their gold was worth. Not because buyers cheated them. But because they didn't know what to check.
First, know what your gold is actually worth
Before you walk into any shop, do this one thing — check today's gold rate.
Most people walk into a buyer's shop without knowing the live gold price.
The formula:
Gold Value = (Weight in grams × Purity % × Today's rate per gram) ÷ 24
Example: 10g of 22K gold at ₹7,200/gram = 10 × 0.916 × 7,200 = ₹65,952.
Any offer significantly below this means deductions you haven't accounted for — or a low-ball offer.
Always check gold rates on MCX or financial apps before leaving home. Rates differ slightly city-to-city. Also making charges paid while buying are NOT recoverable — you're only paid for the gold's melted value.
5 things to check before finalising any gold buyer
Not all gold buyers operate the same way. Here's how to tell a trustworthy one from the rest.
Do they use XRF machine testing? Touchstone (kasauti) testing is outdated and inaccurate — can be off by 1–2 karats. Insist on XRF (X-Ray Fluorescence) technology for purity testing. Reputed buyers like myGold use it.
Is the weighing scale certified? Ask if scales are BIS/government certified. Some unorganised buyers shave 0.1–0.2g off every reading — small per gram but significant on 50g.
Do they show you the live rate they're paying? A transparent buyer will show you the gold rate they're basing the offer on. If they give a number without showing the rate — ask.
Are there hidden deduction charges? Legitimate buyers charge a small processing/testing fee (0.5–2%). Watch for "melting charges," "handling charges," or vague deductions that eat 8–12% of your gold's value.
Do you get a receipt? Any serious buyer provides a written transaction receipt — weight, purity, rate, and final amount. No receipt = no accountability.
Types of gold buyers and what to expect from each
There are four main places to sell gold. Each has tradeoffs.
Local jewellers: Convenient and familiar. But most buy-back at 10–15% below market. Making charges deducted. Better for exchange/upgrade than pure cash sale.
Unorganised cash-for-gold shops: Fast and informal. Risk of inaccurate testing, low offers, no receipt. Unorganised buyers may use outdated touchstone testing, deduct hidden melting charges, or round down gold weight — costing you significantly.
Organised gold buying companies: Scientific testing, certified scales, transparent rates, bank transfers. Slightly more process but significantly better value and safety.
Online/platform-based buyers: Emerging option. Convenient but requires shipping gold — suitable for coins/bars, less practical for jewellery. Always check if they have a pickup option.
Selling gold in India requires basic ID — here's exactly what to carry.
Many people own gold that was either gifted or purchased years ago, and it is common for customers not to have the original invoice but other than that there are certain documents that one should have before they want to sell gold.
— Aadhar card (mandatory for most buyers)
— PAN card (mandatory especially for transactions over ₹2 lakhs to comply with IT rules)
— Original purchase bill / hallmark certificate (if available — helps establish cost basis and purity upfront)
— Bank account details for NEFT/IMPS transfer (cash payments limited to ₹10,000 for some buyers under IT guidelines)
Note: No bill? Not a dealbreaker. Reputable buyers accept gold with a simple self-declaration form + ID proof.
Before you sell, consider this — you might not have to.
If you need a large, immediate lump sum, selling your gold may still be the right choice. However, if you’re considering selling simply because your gold feels “idle,” it’s worth exploring leasing first. By leasing unused gold, you can generate a steady income, with returns that can grow your gold holdings by up to 5% per annum. The best part—there’s no lock-in, so you can withdraw anytime and have the amount credited directly to your bank account.
Read the blog to know more about gold leasing.
