It is a common practice among Indian households to convert their gold into cash when they are in dire need. Instead of opting for loans, gold seems to be a more preferred means to manage their finances. As and when the online gold rate increases, an influx of people rush to sell their gold jewellery for cash.
If today the gold rate in trichy gets to its peak, you will observe an increase in the number of people selling their gold. However, some of us may get a better price while converting gold into cash, but most of us tend to receive a much lower rate than expected.
Here are the key factors to keep in mind while selling your gold for cash to avoid further disappointments:
Retain purchase bill or invoice
A gold piece of advice would be to keep the purchase invoice with you when you go to a gold dealer. The invoice contains information about the purity of your gold and its weight in Karat. It prevents any scope of conflict of interest regarding the authenticity of its purity.
A genuine buyer will always ask for the purchase bill when you go to sell your gold jewellery. So, always ask for an invoice when you buy gold and keep it with you when you have to sell it to the same dealer.
Determine the worth of your gold
It is essential to know the worth of your gold before selling it for cash. Visit multiple gold stores and take their quotes. Get at least five quotes and decide one that benefits you more.
Ensure that your gold jewellery is hallmarked to erase doubts about its purity and weigh it to understand the actual value of your gold ornament. Knowing the purity of your gold and its weight gives you a negotiating benefit with your buyer.
Check if the scale being used gives an accurate result
Lenders use a karat meter to check the purity of their gold. Sometimes, the karat meter does not produce accurate results when you visit local gold dealers to check your gold’s purity. While examining the purity of your gold jewellery, make sure that you know the scale being used and that it works properly.
Furthermore, visit a reliable gold dealer with years of experience in the field. He can provide the most accurate result while checking your gold for purity because he would never risk his reputation.
Find the right buyer
After checking the value of your gold, look for reputed and reliable buyers in the market. Selling your gold to a reputed gold dealer will ensure you a better online gold rate. Thanks to the internet, you can now assess your buyer’s reputation online.
You can search on Google and find reviews from previous clients that offer great insight into the buyer’s attitude. To know if your buyer is legitimate, you can also ask for their credentials and other documents that prove their legitimacy.
Deciding on a final price
When you take your gold to your buyer, they melt your gold jewellery in an induction furnace and separate it from all impurities. A price will be set based on its purity level and the market price. The entire process will come at a nominal cost, which will be dedicated from the final price of the gold. The nominal rate can be between 4% and 6%.
Some lenders may offer you a selling price for every 10 grams of your gold. It is similar to getting a buy price, but it has been observed that the selling price is generally about 7% lower than the price. Keep in mind that you may lose a lot of money by paying labor charges and taxes. Being aware of how the online gold rate is decided enables you to make an informed decision.
Find the right place to sell
You can opt for a reputed jewellery store to sell your gold as you will have a fair market price compared to other options. However, there is a disadvantage here. Jewellery stores have a strict policy of buying back only those gold items that have been bought from them. It means that you cannot sell the items bought from other dealers even if you have a purchase invoice.
You can also opt for pawn shops and other unauthorized gold buyers in times of emergency. Since these shops generally indulge in malpractices, you will have to be well-researched about the market price, the value of your gold, and its level of purity to get a fair price.