How Gold is Valued Before You Sell Gold or Release It

It usually begins with a quiet moment. You are sitting at home, holding a piece of jewellery which once marked a celebration. Now, circumstances have changed, and you are planning to sell gold. It is an emotional decision, and also a practical one. 

But before you step into a store, it helps to know how its worth is actually calculated. If you are unsure how gold buyers decide the value, don’t worry. It is simpler than you think. Let us discuss this clearly.

Before you sell gold, Know What Really Decides Its Value

Planning to release gold that you had pledged? Before making any big decision, you should know how its value is decided. Many people think it is based on what they paid for it. But that’s not how buyers calculate the price.

They don’t look at how pretty it is, what brand it is, or how special it is to you. The value depends on three main things:

• Purity of the gold
• Weight of the gold
• Current market rate of gold

These three factors decide how much money you will actually get.

When you understand this process, you will get a better offer. Thinking about selling an old chain or taking back gold from a loan? Knowing how valuation works helps you make a smarter decision.

Let’s now look at each of these points one by one.

Purity of the Gold

Gold purity means how much actual gold is present in your jewellery. It is usually measured in karats.

24 Karat – 99.9% pure gold

22 Karat – 91.6% pure gold

18 Karat – 75% pure gold

If you bought a 22K gold chain, it means 91.6% of the chain is pure gold, and the rest is made up of other metals. It could be copper or silver to give it strength.

When you go to release gold, the buyer will check its purity using one of these methods:

• Karat meter
• Acid test
• XRF testing

If it is BIS Hallmarked, it is even better. Because it already shows the gold purity with a stamp.

Weight of the Gold

Next comes weight. This is simple but very important. The buyer will weigh your gold item to know how many grams of gold it contains. Anyways, only the gold part is counted.

If your jewellery has stones, enamel or beads, their weight will be subtracted. So, if you bring a 15 gram bangle but it has stones weighing 2 grams, only 13 grams will be considered for valuation.

So always ask: What is the net weight of just the gold?

Current Market Price of Gold

Gold prices change daily based on the international market. So the amount you get will depend on the live gold rate on the day you go to sell it.

You can check the current rate of 22K gold online. Many buyers use a 24K rate and convert it to the jewellery purity.

Let’s take an example:

If today’s rate for 24K is ₹6,800 per gram, then

22K price = 91.6% of ₹6,800 ≈ ₹6,228 per gram

So, if your gold is 22K and weighs 10 grams:

Estimated value = ₹6,228 × 10 = ₹62,280

This is just a rough estimate. Actual payout may differ depending on other factors.

No Making Charges Counted

In some shops, when you buy gold jewellery, you will pay making charges for the design and craftsmanship. But when you sell gold, you don’t get that part back.

The buyer will only pay you for the pure gold content. So even if your necklace was costly when you bought it, don’t be surprised if the resale value is less than what you expected.

Bottom line 

You don’t need to be confused while planning to sell or release gold. Know how gold valuation works, and you will get the confidence to make a smart decision.

Need a Trusted Gold Buyer? Visit White Gold Today. At White Gold, we believe in transparent valuation and quick service. We make sure you get the best rate, with zero hidden fees and full clarity.

Visit your nearest White Gold branch now! 

FAQs

How is gold value calculated when I sell gold?

Gold value is based on purity, net weight, and the current market rate per gram. Trusted buyers always use certified methods to test purity.

Do I get the same price when I release gold from a loan?

Not always. After you release gold, a new buyer will evaluate it again. The price depends on the current gold rate and the jewelry purity.

Can I sell gold without a bill?

Yes. Many buyers accept gold without a bill. But they will check the purity carefully. Having a bill may speed up the process and give added trust.

Why is the price I’m offered lower than what I expected?

You don’t get paid for stones and making charges, only for pure gold weight. Some buyers deduct small testing and handling fees.

Is it better to sell gold at a jewellery store or a gold buyer?

Gold buyers usually offer better rates and faster service. Always compare quotes before you sell gold or release gold for the best value.