Whether it's grandma's old necklace, broken jewellery, or coins you no longer want — selling old gold is one of those rare situations where most Indians instinctively know they're being short-changed but don't know by exactly how much. Our calculator solves that.

Why You Never Get 100% of Market Rate

When you sell old gold, you'll always receive less than today's market rate. Here's why:

  1. Jeweller's margin — They need to make a profit when reselling or refining (typically 5-10% loss)
  2. Refining charges — Old gold needs to be melted, tested, and re-purified (1-3% deduction)
  3. Soldering loss — Jewellery with gems, kundans, or joints loses some weight in melting (2-5%)
  4. Purity verification — Even hallmarked old gold gets tested again, losing tiny amounts

Realistic expectation: You'll receive 85-95% of today's market value for plain gold jewellery in good condition.

The Buyback Rate Game

"Buyback rate" is the percentage of market value the jeweller pays you. Higher = better for you.

From your original jeweller (gold you bought from them):

  • Tanishq Gold Exchange: typically 95-100%
  • Malabar Gold: 90-95%
  • Kalyan Jewellers: 90-95%
  • Local jeweller: 95-100% (negotiable)

From any other jeweller (gold not bought from them):

  • Same chain stores: 80-90%
  • Local jewellers: 85-92%
  • Roadside cash buyers: 70-80% (avoid!)

The Refining Charge Truth

Refining charges are real costs — old gold genuinely needs melting and re-purifying. But the rate varies:

  • Pure gold coins/biscuits: ~0.5-1% refining (minimal work)
  • Plain gold jewellery: ~1-2% refining
  • Stone-set jewellery: 2-4% refining + soldering loss
  • Heavily damaged/broken pieces: 3-5% refining

Red flag: If a jeweller quotes refining over 5%, walk away. Major chains have transparent published rates.

What About Stones, Diamonds, and Gems?

If your jewellery has stones (diamonds, kundan, polki), the jeweller will:

  1. Carefully remove stones and return them to you
  2. Weigh only the gold portion
  3. Apply soldering loss (2-5%) for the metal at attachment points

Always insist that stones be returned — they have separate value that the gold buyback doesn't account for.

Tax Implications When Selling Gold

You don't pay GST when selling old gold (GST is only on new gold purchases). However:

  • Short-term Capital Gains (sold within 3 years): Added to your income, taxed at slab rate
  • Long-term Capital Gains (sold after 3 years): 20% with indexation benefit
  • Inherited gold: Holding period inherited from previous owner

For sales over ₹2 lakh, jewellers are required to collect TCS (Tax Collected at Source) and your PAN. Consult a CA for tax planning.

The Selling Checklist

Before walking into a jeweller to sell:

  1. ✓ Check today's market rate online (use our calculator)
  2. ✓ Weigh your gold at home if possible (digital scale)
  3. ✓ Find original purchase invoice (boosts buyback rate significantly)
  4. ✓ Get quotes from 2-3 different jewellers
  5. ✓ Ask for itemized breakdown — don't accept lump sum
  6. ✓ Verify weight is measured in front of you
  7. ✓ Demand stones (if any) be returned separately
  8. ✓ Get receipt with all deductions clearly mentioned

Selling gold is usually a one-time decision per piece — don't rush it. A few hours of comparison can mean ₹5,000-10,000 difference on a ₹1 lakh sale.