Gold Exchange: Exchanging old ornaments for new jewellery? Find out if you are getting the right price for your gold..

Gold Exchange: Buying gold jewellery during the festive season is considered auspicious. Many people take this opportunity to exchange old jewellery for pieces with new designs, which helps avoid paying the full amount out of pocket.

However, you may not necessarily receive the full market value when exchanging old gold. Jewellers determine the price based on the gold's purity, its weight, and various deductions. Therefore, keep these 6 points in mind before exchanging your old jewellery:

1. Verify the purity of the gold

First, have the purity of your old jewellery checked. Ask the jeweller to test the gold in your presence; do not rely solely on old receipts or the jeweller's word. If the jewellery bears a BIS hallmark, you can verify its HUID (Hallmark Unique Identification) number using the 'BIS Care' app.

2. Get accurate information about the weight

The total weight of a piece of jewellery may differ from the actual weight of the gold it contains. Stones, pearls, or other embellishments are not included in the value of the gold. Ask the jeweller to specify the total weight, the weight of any non-gold components, and the actual weight of the gold itself.

3. Check the current market rate for gold

When exchanging old gold, the jeweller may not offer the same rate as that for new gold; they might apply a different rate for old gold. Therefore, check the prevailing market rates beforehand. Do not compare the price of 22-carat gold with that of 24-carat gold, as their purity levels differ.

4. Inquire about deductions

Deductions may be applied to old gold to cover costs such as melting, refining, or testing. Ask the jeweller exactly how much will be deducted, and clarify whether this deduction is a percentage of the value or a fixed monetary amount. Do not simply accept a vague explanation like "standard deduction."

5. Understand the pricing of the new jewellery separately

Getting a good value for your old gold does not necessarily mean that the new piece of jewellery will be cheaper. For new jewellery, the cost of gold, making charges, the price of any stones, and GST may be listed separately. Ensure you fully understand the entire bill before proceeding with an exchange.

6. Always check the exchange policy and the bill

Every jeweller may have a different exchange policy. Some retailers accept jewellery purchased from other stores, while others prioritise items originally bought from their own shop. At the time of an exchange, obtain a written record detailing the weight, purity, rate, and any deductions applied. Also, be sure to keep the bill for the new jewellery.

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