How to Sell Gold in India: Complete Guide to Getting the Best Price

Selling gold in India requires careful preparation to ensure you receive a fair value for your assets. So, knowing the entire process of gold selling helps you avoid low offers and comply with Indian regulations. This guide walks you through every step, from checking your gold’s worth to securing the best price, empowering you to make informed decisions.

Process of Selling Gold in India

Here is a step-by-step process you must follow for gold delling in India:

Step 1: Understand Which Gold Items You Can Sell

• You can sell various gold items, including old gold like gold jewelry, coins, rings, gold ornaments, and bars.

• 22K and 24K gold jewellery from reputable sources fetches the highest resale value in gold, while lower karats like 18K may incur deductions due to alloying.

• Gold bearing the BIS hallmark clearly establishes its purity, increasing buyer confidence and ensuring a more transparent valuation.

Also Read: How Gold Price Fluctuations Affect Your Gold Loan

Step 2: Know Your Gold's Value

• Determine the gold's resale value by checking its purity, overall weight, and the current market value or rate.

• Use a digital scale for an initial weigh-in, then verify the live gold rate on platforms like MCX or financial news sites, which update every few minutes. For example, 10 grams of 22K gold at ₹6,500 per gram yields about ₹65,000 before deductions.

• Track daily fluctuations as the gold price rises with global demand.

Also Read: 10 Factors That Influence Gold Prices in India

Step 3: Gather the Documents Required

• PAN card and Aadhaar (identity proof) are mandatory, especially for transactions over ₹2 lakhs to comply with income tax rules.

• Some buyers may request you to bring passport-sized photos and any purchase receipts, though sometimes old gold sells without bills via identity checks. This prevents fraud and ensures traceability under anti-money laundering laws.

Step 4: Choose a Reliable Gold Jewellery Buyer

• Always sell your gold to trusted buyers, such as ISO-certified firms, reputable national chains, or licensed old-gold dealers.

• Choose buyers who offer transparent purity testing, instant price quotes, and clear explanations of deductions.

Step 5: Understand The Gold Valuation Process

• Most authorised buyers use non-destructive XRF machines to assess the purity of your gold without melting or damaging it.

• After purity testing, your gold is weighed on calibrated digital scales in your presence to ensure accuracy.

• The final value is calculated after accounting for standard deductions, such as wastage (usually 1% to 5%), and removing non-gold components, such as stones or beads.

Tips to Get the Best Value for Your Gold in India

Follow these practical tips to maximise your payout when selling gold jewellery:

• Compare Offers from Multiple Buyers: Getting valuations from at least three reputable dealers on the same day gives you bargaining power and helps you spot the best price.

• Track Gold Price: Track daily gold prices and sell gold when rates are high, as they fluctuate based on global markets and local demand.

• Clean the Jewellery: It’s essential to clean your jewellery before selling, as it can help with testing and valuation. A clean piece looks better and can make purity testing smoother, helping in accurate valuation.

• Exercise your Rights: Don’t hesitate to negotiate deductions like wastage or service fees. Ask for a clear breakdown and a detailed receipt to understand how the final figure was reached.

• Pay via Authorised Channels: For safety and compliance, insist on payment by bank transfer (NEFT/RTGS) rather than cash for high-value transactions, as this aligns with regulatory norms.

• Time your Transaction: Remember that selling gold held for less than 24 months from purchase may attract short-term capital gains tax, while gold held for more than 24 months attracts long-term capital gains tax at 12.5%.

Also Read: How to Calculate Gold Loan Interest Rates

To Conclude

Selling gold in India becomes far more straightforward when you understand how purity, weight, prevailing market rates, and documentation influence the final value you receive. By choosing compliant buyers and carefully comparing valuations, you can ensure a hassle-free selling experience.

Poonawalla Fincorp’s Gold Loan helps you meet financial needs while continuing to benefit from your gold’s long-term value; apply today.

Table of Content

• Process of Selling Gold in India

• Tips to Get the Best Value for Your Gold in India

• To Conclude

• FAQ

FAQs

Can I sell gold without a purchase bill?

Yes, you can sell old gold without bills using a PAN card and Aadhaar for verification, as long as the gold buyer follows KYC norms.

How is the final gold price calculated?

Purity times overall weight times current market price, minus deductions for wastage and impurities, with full transparency provided.

Is cash payment allowed for large gold sales?

Cash payment is limited; so, opt for bank account transfer for amounts over ₹2 lakhs to comply with tax laws.

What documents are needed for a Gold Loan?

When applying for a Gold Loan, keep basic KYC documents handy, alongside documentation related to the ownership of your collateral you intend to pledge.