In this guide (4 sections)
Selling rate vs buying rate
The number on TV or a jeweller's board is the rate at which refined gold is sold. When you sell old jewellery, the buyer is acquiring unrefined gold of mixed purity. Turning it back into 99.9% gold costs money — melting, refining losses, assaying, transport and insurance.
Where the difference goes
- Purity — 22K is 91.6% gold, so it is worth 91.6% of the 24K rate before any margin.
- Refining and melting loss — a small amount of gold is lost when jewellery is melted and refined.
- Assay and logistics — testing, secure transport and insurance.
- Buyer's margin — what keeps the business running.
What is a fair payout percentage?
There is no regulated figure. The best way to judge is to ask each buyer for their offer as a percentage of pure-gold value (weight × purity × 24K rate). We show our payout percentage on our calculator before you share any details — so you can compare without being chased.
Red flags
- The buyer will not tell you the weight or purity before quoting.
- Testing happens out of your sight.
- The offer is valid only as exchange credit.
- Cash offered for large amounts without PAN.
FAQs
Why is the 22K rate not the same as the 24K rate?
Because 22K jewellery is only 91.6% gold. The 22K rate is roughly the 24K rate multiplied by 0.916.