How the price of your gold is calculated when you sell

Every fair gold price comes from three numbers: how much gold is in the item, how pure it is, and what that gold is worth today. Knowing how they fit together helps you judge any quote, including ours.

1. Net weight, not gross weight

Gross weight is what the item weighs on the scale. Net weight is the gold alone. Stones, beads, lac or wax filling and non-gold parts are removed from the calculation, so a heavy-looking necklace may carry less gold than you expect.

2. Purity (karat)

Purity tells you what share of the metal is gold. Common grades in India:

• 24K: about 99.9% gold (999)
• 22K: 91.6% gold (916), the usual grade for jewellery
• 18K: 75% gold (750)
• 14K: 58.5% gold (585)

Hallmarked jewellery carries the BIS mark, a purity grade such as 22K916, and a 6-character HUID code. Testing still confirms the actual purity before a price is given.

3. Today’s gold rate

Gold rates change every day, and they are quoted per gram for a stated purity. A 24K rate is the price of 999 gold, so the value of your gold is roughly: net weight × (purity ÷ 999) × today’s 24K rate per gram. If a buyer quotes a 22K rate instead, it is simply net weight × the 22K rate.

Example with round numbers only: 10 grams of 22K (916) gold at a 24K rate of ₹10,000 per gram works out to 10 × 916 ÷ 999 × 10,000 ≈ ₹91,692, before any agreed deductions. Your actual quote depends on the buyer’s rate for the day and the tested purity.

4. What can be deducted, and what cannot

• Stones, beads and settings: their weight is taken out. Ask to see both the gross and the net weight.
• Wax, lac or other filling inside hollow pieces: taken out of the weight. It is sometimes only found during testing.
• Solder in the joins: some older pieces use lower-purity solder, which can bring the tested purity down a little.
• Purity lower than marked: the price uses the purity found in testing, not the stamp.
• Loan settlement: for pledged gold, the amount paid to close the loan comes out of the value.

Making charges, wastage and GST from the original purchase are not part of the gold’s value, so no buyer refunds them. Any other charge should be named, in rupees, before you agree.

Tips before you sell

• Watch the weighing and testing. A good buyer does both in front of you.
• Ask for the net weight, purity and rate used, not just a final number.
• Bring purchase bills or hallmark details if you have them. They help, but are not required.
• Compare quotes. We encourage you to check our valuation with other buyers.
• Cash is only possible when the total is under ₹2 lakh, as income-tax law does not allow cash payments of ₹2 lakh or more. Banks usually limit UPI transfers to about ₹1 lakh a day, so ask how a large payment will be made.