Decisive factors to consider before selling gold jewellery for cash
In India, Gold is not merely a piece of ornament or form of investment but has imprinted its roots deep into our culture and tradition. Being the harbinger of indulgence and prosperity, it is passed down to the successors as a token of legacy and treasured as a financial security in times of dire. However, it has been analyzed by eminent market researchers that due to the lack of proper insights and knowledge, people often end up selling their gold jewellery at irrelevant prices and incur substantial losses.
The Impeccable Route to Selling Gold for Cash
Since the ancient ages, the practice of selling gold for cash has been much prevalent in India, which helped people to convert the precious article into money. There is a myriad of options available for Indians when it comes to buying and selling gold ornaments. However, the banks do not buy back the gold bars, bullion or coins from the buyers once being sold by them. Thus, the ultimate option left for them is to sell their possessed gold to the jewellers or goldsmiths, who in turn, take advantage of the situation and deduct a major proportion of value in the name of melting charges, wastage charges and so on. Considering the scenario, following here are the crucial checkpoints to consider prior to selling gold jewellery.
Estimating the Final Worth
The gold jewellery is melted down for washing out all the impurities in it. Then after, the residual pure gold is being evaluated for assessing the final price of the gold. This entire process decreases the final gold price by a minimal rate of 4-6%. Thus, the refining, melting and making charges will be deducted from the cash to be received.
Checking its Purity
Before selling the jewellery, you should give pivotal focus to the process of checking whether its hallmarked or not, since it represents the degree of purity. In India, a piece of jewellery with a 916 hallmark states 91.6% purity for 22-carat gold. Thus, jewellers certainly prefer a 916 hallmarked gold jewellery piece compared to a non-hallmarked gold jewellery article due to lack of credibility of its purity.
Considering the Best Time to Sell
As per the law of demand and supply, the more people invest in a particular commodity, the more its price is likely to increase. As per the market principles and conventions, gold is usually more in demand when the economy seems to be unsteady since it is considered to be a secure and benign investment than other available options including stocks and shares.
Comparing the Market Reputation of Cash-for-Gold Companies
You can also consider the option of selling gold jewellery to the cash-for-gold firms. However, you should conduct an in-depth online research to evaluate their market reputation prior to it, which would further help in eliminating the firms you should avoid. While surfing online, try to check the unbiased reviews and comments about their service while going through the blogs and forums and ignore the paid adverts.
Retaining the Invoice
A jeweller with sound professional and ethical value would inquire for the purchase invoice or document before buying the gold jewellery piece from you in exchange for cash. In case you consider visiting the same shop from where you have purchased the ornament, the jeweller will be in no situation to question about its purity, as the particulars will be clearly mentioned in the purchase invoice.
The Final Piece of Advice
In context of the aforesaid key determinants, you must carve your expectations as per the reality. The jewellery you are trying to sell might be quite endearing and precious to you, however, it would be utter imprudent from your end if you expect it to sell at a price for something close to its buying price. Moreover, it will not be possible to sell the article at an appraised price for insurance purposes either as it depends on a series of variables including rarity, beauty and more. Thus, be rationalistic, be prudent and stay updated before you dive into the dynamics of selling gold jewellery for cash.