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Will hold has been conventionally one of the most popular investment options in India. But apart from being an attractive investment option, it can also help you get cash for gold at times of need.
Our lives are full of uncertainties, and one such change is a financial difficulty that could fall upon any individual. There could even be savvy investors who purchase gold intending to sell it once prices rise.
Therefore, selling gold for money has been a burgeoning practice in India. Incidentally, during the June quarter, Indian consumers sold almost 38 tonnes of gold which was a record of sorts.
So before you sell your gold, you must keep the following things in mind:
01. Bill
Any reputed institution will always ask for the documents or invoice of the purchase when you go to sell gold. If you are going to head to that same shop from where you bought the ornament, years before; In case of any disputes regarding purity, etc., the retailer won’t be in a situation to doubt, as the details of the same will mentioned in the bill of purchase
02. Hallmarking
Hallmarking has always been a significant issue when it comes to buying and selling gold in India. Gold cannot be used in its pure form (24 carats) and is hence mixed with metals such as silver or nickel to make it sturdy.
The gold standard has been established only for 14,18 and 22 carats. Fourteen carats would mean, 14 parts gold and ten parts other metal. Eighteen carats would mean 18 parts gold and six parts other metal.
However, in India, gold has been sold in multiple variants. In parts of Maharashtra, generally, 23-carat gold is sold. Whereas in parts of UP, 20-carat modifications are shared.
Therefore, before selling your gold ornaments, you must check if your jewelry or any other ornament is a hallmark or not. Hallmarking sets the purity of gold decoration.
A decoration that has a 916 hallmark means 91.6% purity of gold for 22-carat gold. Institutions, in most cases, look for a 916 hallmarked gold rather than a non-hallmarked gold as the authenticity of the virtue is in doubt.
The jewelry that is not hallmarked is first to a store that has a carat meter, which establishes the purity of gold.
After the testing of the gold ornament, a certificate with the data about the proportion of various other elements (silver, copper, etc.) other than gold in that jewelry along with its final purity (in karats) will be issued.
03. Worth of Gold
It is very crucial to have a proper understanding of the worth of gold when you are about to sell gold. Take quotes from multiple stores for this reason.
Because there are no standardized methods through which we can quickly determine the selling price, there can be quite some difference between the quotes procured.
Get at least a few quotes, so that you can fully appraise the value of the jewelry and settle for the highest price possible for the piece you are parting with.
04. Final Price
Gold shops that take used gold typically would first melt the jewelry in an induction furnace. And the gold available after that is free of any impurities and made for deciding the price.
This whole procedure is done at a nominal cost which will subtract from the final price of gold. This deduction ranges between 4-6%. In some of the other cases, shops have a pre-decided selling price for every 10 grams, in the same manner as that of a buy price.
The selling price tends to be 6-7% lower than the buying price. Also, always remember that in the process of selling gold jewelry. One will lose out on the entire making/labor charge paid at the time of purchase (which also forms a significant part of the jewelry price) and the tax paid. Now the next and the most crucial question is where to sell gold.
05. How and Where to Sell Gold?
The best possible way is to go to a reputed institution that can offer cash for gold nearby. And you’ll come across several institutions providing you pay for your gold. Explore different options that you have and choose the one that suits your needs best.
Keeping the above points in mind, you can sell your gold for good money. When you do, make sure you sell it for the right amount that your gold deserves.
