India is one of the largest consumers of Gold on the world map as it is one of the most valuable and widely consumed metals in India. Converting gold for cash has become inherently common among Indian households as the gold stores great value. When the gold jewellery rate increases in the market, people rush to gold buyers to access instant cash to cater to immediate financial needs.
Since the gold jewellery rate is at its peak, it is the right time to sell your gold and get instant cash. However, not all buyers can offer a fair price while buying your gold ornaments. With the number of gold dealers in the market, there are chances of you getting tricked into selling your gold items for a lower price than the market price.
Here are five things you must know before selling your gold for cash:
1. Know the value of your gold
It would not be advisable to directly sell your gold for cash to the first buyer you visit in the gold market. First of all, it is crucial to know the worth of your gold jewellery before selling it for cash. Visit several gold buyers/stores and their quotes. It would be wise to get at least five quotes and then make a decision.
Furthermore, you will need to ensure that your gold jewellery is hallmarked. Reputed gold buyers consider hallmarked gold jewellery as it eliminates any doubt about its purity. Also, weigh your gold jewellery to understand its actual value. When you know the purity of your gold ornaments, you have an upper hand to negotiate the best price for yourself.
2. Confirm that the scale being used works fineÂ
Gold buyers generally use a karat meter to determine the purity of gold jewellery. It has been observed that some buyer’s karat meters do not provide accurate results when you visit them to check the purity and weight of your gold jewellery. It is your responsibility to make sure that the scale being used works fine and gives accurate results.
A gold piece of advice would be to visit reputed gold dealers with years of experience in the gold business. They will be able to provide the most accurate result in terms of the purity and weight of your gold jewellery. These buyers will never risk their reputation by indulging in fraudulent activities.
3. Look for the right gold buyer
Given the number of gold buyers available in the market, it is possible to get lured in and receive a lower gold jewellery rate for your gold jewellery. Find reputed gold buyers and ensure that you are getting the best gold jewellery rate.
You can now investigate your gold buyer online. Go to Google Search and look for reviews and testimonials from former clients. These reviews offer a great insight into the buyer’s reputation. Also, ask for your buyer’s credentials and documents proving their legitimacy.
4. Know the final selling price
Before offering your final selling price, your gold buyer will melt your gold jewellery in an induction furnace to separate it from all impurities. The price of your gold ornaments is determined based on their purity and the market price. It should be noted that this process can cost you a nominal fee that ranges between 4% and 6%, which is deducted from the final selling price of the gold items.
The selling price is similar to the buying price. You will be offered a gold price based on every 10 grams of gold jewellery. The final selling price is about 7% lower than the buying price in the market. Also, you may lose money by paying labor charges and taxes. Having complete knowledge of how gold jewellery rates are determined will enable you to make an informed decision.
5. Where to sell your gold jewellery?Â
There are several places to sell your gold jewellery at. For instance, you can find a reputed jewellery store and get a fair market price for your gold rate in trichy. However, these stores have a policy of accepting gold jewellery that was bought from them. It means that you can not sell to them if you had purchased your gold ornaments from other dealers, even if you have its invoice with you.
You can choose to sell your gold for cash at pawn shops and other dealers in the market, but you will need to be mindful of the common malpractices.
In short
Before selling your gold for cash, it would be prudent to know the value of your gold jewellery and the whole process of how gold jewellery rates are determined to make an informed decision.