How to Sell Old Gold Jewellery and Get a Fair Price

Selling gold is a different transaction from buying it. When you buy, you pay the rate plus making charges and GST. When you sell, the buyer pays for the pure gold in your piece, minus a deduction for testing and melting. That is why the offer is always below the headline rate, and why it is worth taking a few steps to protect yourself.

What a buyer actually pays for

The buyer works out the pure gold in your piece (weight multiplied by purity), then applies the day's rate. A 22K piece is about 91.6% gold, so a 20 gram necklace holds roughly 18.3 grams of pure gold. The making charge you paid originally is generally not returned, and some buyers deduct a further percentage for melting loss.

Step by step

1. Know the rate. Check today's rate for your karat on our gold rate page so you know what you are being compared against.
2. Find your paperwork. The original invoice and hallmark details help prove purity and weight.
3. Get at least two quotes. Ask each buyer for the rate they use, the purity they measured, and every deduction, in writing.
4. Watch the test. Purity should be tested in front of you, and the weight shown on a calibrated scale. A hallmark centre can give an independent purity result for a small fee.
5. Remove stones. Stones and non-gold parts are not paid at the gold rate. Ask how they will be valued.
6. Understand exchange versus cash. Exchanging old gold against new jewellery at the same shop can adjust the price, but it also lets the shop set both sides of the deal. Compare it with a straight sale.
7. Get a proper receipt. It should show weight, purity, rate and the amount paid, with the buyer's name and address.

Things that raise a red flag

• A buyer who will not show the rate or the purity reading.
• A price that changes after the piece has been melted.
• Pressure to decide on the spot.
• Payment only in cash for a large amount. Prefer a bank transfer, and note that rules on cash payments and PAN apply to large sums.

A rough way to estimate your offer

Multiply the weight by the purity fraction (0.916 for 22K), then by the day's 24K rate, then subtract the buyer's deduction. Our sell calculator does the sum for you. Treat the result as a ballpark, since each buyer sets their own deduction.

Frequently asked questions