Gold has always held a special place in Indian households. From wedding jewellery to coins gifted during festivals, most families have some amount of gold stored away. Over time, some of this gold may no longer be useful — broken chains, outdated designs, single earrings, or inherited pieces that don’t suit your needs. That’s when many people decide to sell old gold.
But selling gold isn’t something most of us do often, and safety becomes very important. This guide walks you through the entire process step by step, so you can make informed decisions and avoid common mistakes.
Step 1: Understand What Kind of Gold You Have
Before stepping out to sell, take a moment to understand what you own. Not all gold is the same.
Check:
- Purity: Look for markings like 22K, 18K, or 24K. Jewellery is usually 22K, while coins and bars may be 24K.
- Type: Jewellery, coins, bars, or scrap gold are treated differently.
- Condition: Broken or damaged jewellery still has value because gold is melted and reused.
Even if your gold doesn’t have a hallmark or bill, it can still be sold. Just be prepared for proper purity testing.
Step 2: Check the Current Gold Rate
Gold prices change daily based on international markets. Before you sell old gold, always check the day’s gold rate.
Keep in mind:
- Rates are usually quoted per gram of 24K gold
- Jewellery made of 22K or 18K will be valued accordingly
- The final amount depends on purity and weight
Having a rough idea of the price helps you understand whether the offer you receive is fair or not.
Step 3: Choose a Trusted Buyer
This is one of the most important steps in selling gold safely. Never rush into selling just because you need quick cash.
Look for a buyer who:
- Has a physical store or verified business presence
- Uses transparent purity testing methods
- Provides proper documentation or receipts
- Explains the calculation clearly
Avoid selling gold to unknown individuals or door-to-door buyers. Trust and transparency matter more than convenience.
Step 4: Insist on Purity Testing in Front of You
Purity testing should always be done openly and in your presence. This ensures you’re not being cheated.
Common testing methods include:
- XRF machines (non-destructive and quick)
- Acid testing (traditional but less accurate)
Do not agree to testing that happens in a separate room. If you’re uncomfortable or unsure, you can always walk away.
Step 5: Understand the Weight and Deductions
Gold jewellery often contains stones, enamel, or other non-gold elements. These are usually removed or excluded during weighing.
Make sure:
- Stones are weighed separately
- You understand how much pure gold is being considered
- Any deductions are explained clearly
When you sell old gold, you are paid only for the gold content, not for design or making charges you originally paid.
Step 6: Ask for a Clear Price Breakdown
Before finalising the sale, ask for a detailed explanation of the calculation.
A fair price breakdown includes:
- Purity percentage
- Net gold weight
- Applicable gold rate
- Final payable amount
There should be no hidden charges. If something doesn’t feel right, don’t hesitate to ask questions or check with another buyer.
Step 7: Carry Valid Identification
Most genuine buyers will ask for identity proof to complete the transaction. This is a normal and legal requirement.
Commonly accepted IDs include:
- Aadhaar card
- PAN card
- Passport or driving licence
For higher-value transactions, PAN details may be mandatory. Always ensure you receive a proper receipt for the sale.
Step 8: Choose a Safe Payment Method
Avoid cash payments, especially for large amounts. Digital payments or bank transfers are safer and leave a clear record.
Before accepting payment:
- Confirm the amount credited
- Match it with the agreed value
- Collect your invoice or receipt
Safe payment methods protect both you and the buyer.
Step 9: Don’t Rush — Compare If Needed
There is no harm in checking prices at two or three places before making a final decision. Gold doesn’t lose value overnight.
If someone pressures you to sell immediately, take that as a warning sign. When you sell old gold, patience can often help you get a better deal.
Final Thoughts
Selling gold can be a smooth and stress-free experience if done the right way. By understanding your gold, checking rates, choosing a trustworthy buyer, and insisting on transparency, you protect yourself from unfair practices.
Gold is valuable, not just emotionally but financially too. Whether you’re selling to meet a need or to reinvest, following these steps ensures that you do it safely, confidently, and with peace of mind. Remember, when it comes to gold, being informed is your biggest strength.
