In this guide (5 sections)
The formula every buyer uses
Whether you sell to a jeweller in Zaveri Bazaar, a gold loan company or a doorstep buyer like us, the price is built from the same four numbers:
- Net gold weight — the weight of gold only. Stones, kundan, lac, wax, threads and pearls are removed or deducted.
- Purity — the gold fraction, for example 0.916 for 22K. Checked at your home, not just assumed from the stamp.
- 24K rate — today's benchmark rate for 99.9% gold per gram. See today's gold rate in Mumbai.
- Payout % — the share of pure-gold value the buyer pays. It covers melting, refining and assay costs, and the buyer's margin. Good buyers tell you this number; many do not.
Worked example: 22K necklace
| Gross weight on scale | 32.40 g |
| Less: stones and lac | − 4.10 g |
| Net gold weight | 28.30 g |
| Purity reading | 91.4% |
| Pure gold content | 28.30 × 0.914 = 25.87 g |
| 24K rate (example) | ₹15,000 / g |
| Pure gold value | ₹3,88,050 |
| Payout at 97% | ₹3,76,409 |
Notice the purity: the necklace was stamped 916 but tested at 91.4%. Small variations like this are normal on older, repaired pieces — and they are exactly why testing in front of you matters.
Worked example: 18K diamond ring
A 6.2 g ring with 0.8 g of stones has 5.4 g of gold. At 75% purity that is 4.05 g of pure gold. At ₹15,000/g and 97% payout, the gold value is about ₹58,928. The diamonds are valued separately (or returned to you) — they are not included in a gold buyer's price.
What is NOT included in the price
- Making charges — labour cost you paid when buying; no buyer refunds it.
- GST — the 3% you paid on purchase is a tax, not gold.
- Brand or design premium — unless you are selling to a pre-owned jewellery reseller.
How to check any quote in 60 seconds
- Ask for the net weight and purity reading in writing.
- Look up today's 24K rate.
- Multiply weight × purity × rate. That is 100% of the gold value.
- Divide the offer by that number. The result is the buyer's real payout percentage — compare it across buyers.
Or use our gold value calculator, which does this instantly with today's rate — no phone number required.
FAQs
Why is my gold worth less than what I paid?
Because the purchase price included making charges and 3% GST, which are not part of the gold value. Also the gold rate may have changed since you bought it.
Is the purity on the hallmark always correct?
Usually close, but older or repaired jewellery can read slightly lower. A purity test confirms the real figure.