How Is Old Gold Value Calculated?

The assessed value of old gold is generally determined using four central elements:

Assessed purity × eligible net gold weight × applicable gold-purchase rate − disclosed deductions

The original retail price is not normally the starting point. A buyer assesses the gold content that is present in the article at the time of the transaction.

What is old-gold valuation?

Old-gold valuation is the process of assessing a used gold article before making a purchase offer.

The process may involve:

1. Identifying the article
2. Recording its gross weight
3. Checking its indicated and assessed purity
4. Identifying stones and non-gold components
5. Establishing its eligible net gold weight
6. Applying the relevant purchase rate
7. Explaining deductions, where applicable
8. Presenting a final offer

The customer should understand the final amount before accepting the transaction.

Gross weight and net gold weight are different

Gross weight is the weight of the complete article.

It may include:

• Gold
• Diamonds or coloured stones
• Beads
• Thread
• Lac
• Springs
• Clasps
• Solder
• Other non-gold components

Net gold weight is the weight attributed to the eligible gold content after components that are not being valued as gold have been considered.

This is why the weight shown on a scale may not be the same weight used in the final gold calculation.

Why purity matters

Gold jewellery is made in different purities. Common hallmark expressions include:

• 22K916
• 18K750
• 14K585

These indicate the declared proportion of gold in the alloy. BIS identifies caratage and fineness as part of the hallmarking system.

Two ornaments of the same weight can therefore have different gold values when their purities differ.

Does a hallmark determine the final sale value?

A hallmark provides information about the declared purity when the article was hallmarked. A HUID can also be verified through the BIS Care application.

However, an old-gold buyer may still assess:

• The article presented
• Its current condition
• Net eligible metal weight
• Solder or other components
• Stones and attachments
• The method required to establish purity

The hallmark should be considered valuable evidence, but the final offer should still be explained using the actual assessment.

BIS confirms that consumers may sell old hallmarked or unhallmarked jewellery to jewellers.

Which gold rate is used?

The rate used to purchase old gold may differ from:

• The retail jewellery rate
• A 24-carat bullion rate
• The price displayed for new 22-carat jewellery
• The amount shown in a news article or mobile application

A customer should ask:

• Which purity rate is being used?
• What time and date does the rate apply to?
• Is the rate applied to net eligible gold weight?
• Are any deductions being made?
• Is the offered amount final?

Avoid comparing two offers unless the same purity, eligible weight and deductions are being used.

Why are making charges usually not recovered?

Making charges relate to the labour, production, design and finishing involved in creating jewellery.

When old jewellery is assessed primarily for its metal content, the original making charge does not become additional gold. The same principle applies to design premiums and many retail presentation costs.

This explains why:

Original invoice price ≠ current old-gold value

A lower sale value does not necessarily mean the gold rate alone was reduced. The original purchase may have included components that are not recoverable as metal value.

What happens to stones?

Stones should not automatically be treated as gold weight.

Ask the buyer:

• Whether the stones are being separately valued
• Whether their estimated weight is being deducted
• Whether removal is necessary
• Whether removal could damage the article
• Whether the stones will be returned
• Whether your consent is required before removal

Do not authorise cutting, melting or another destructive process until it has been explained.

Are deductions always the same?

No universal deduction should be assumed.

Deductions may vary according to:

• Actual composition
• Testing method
• Non-gold material
• Refining requirements
• Transaction policy
• Applicable legal or tax treatment

The important requirement from a customer perspective is clarity. Any deduction should be identified before the transaction is completed.

What should you carry when selling old gold?

The specific requirements depend on the buyer and transaction. You may be asked for:

• Government-issued identification
• Address information
• PAN or tax-related information where applicable
• Bank or payment information
• Purchase invoice, when available
• Ownership or authorisation information
• A declaration regarding lawful ownership

An original invoice can help establish purchase history, but the buyer’s actual KYC and ownership-verification policy should be confirmed in advance.

Questions to ask before accepting an offer

1. What purity was assessed?
2. What is the gross weight?
3. What is the eligible net gold weight?
4. Which rate is being applied?
5. How are stones or non-gold parts handled?
6. What deductions apply?
7. What is the final amount?
8. How and when will payment be made?
9. Will I receive a transaction receipt?
10. Can I decline after the non-destructive assessment?

Old-gold assessment in Mundakayam, Kottayam

Customers looking to sell old gold in Mundakayam or the surrounding Kottayam region can contact Aladis Gold Point to understand its current assessment, verification and payment procedures.

Ask for the complete valuation—not only a per-gram figure.

Frequently asked questions

Can unhallmarked old gold be sold?

BIS states that consumers can sell old hallmarked or unhallmarked jewellery to jewellers. Acceptance, verification and pricing remain subject to the buyer’s process.

Can I sell gold without the original bill?

Requirements vary. A purchase bill may support ownership and purchase history, but the buyer may use additional identity and ownership-verification procedures.

Are diamonds included in the gold weight?

They should not be treated as gold. Ask whether stones are excluded, separately assessed or returned.

Is an online gold-rate estimate a guaranteed offer?

No. A final offer normally requires examination of the actual article, purity, eligible weight and transaction requirements.