Whenever I enter the jewelry shops, I always get over joyed by the red carpet welcome given.
It gives me a feeling that they are decent, genuine and nice people who doesn’t dupe anybody. And just because I felt this way, I haven’t bargained with these people!
And on one day, my intuition gave me a red flag when a sales person struggled to explain me a buy back estimate at a top branded jewellery shop. And obviously, this post is a result of that red flag!
Start checking gold rates a week before
Gold rates keep fluctuating, in order to benefit most out of selling. Keep checking the gold rates every day, and sell on the day that you think is most profitable to get the best price for the old gold.
And also, check if the jeweler is giving the same rate or in the same margin. If not, ask why?
Choose a Old Gold jewellery without stones, kundan work or any beads
Selling a plain gold jewelry is a wise option!
Because when any gold jewelry is purchased with stones on, then remember that you’ve paid for both gold and the stones during purchase. But when the same stoned jewelry is sold back, the stones or beads are considered impurities and they turn out to be zero value which in turn is a loss.
Secondly, the jeweler gets a bonus point to bargain and lessen the gold jewelry weight when the stones or beads are on.
Carry your Invoice
There are 2 benefits when you hold your invoice while selling old gold: You get the total weight of the jewelry without weighing; And also, you could compare the weight given by the buyer, and the one that’s on the bill. So, you can’t be cheated easily!
No bill? You’ll have to bargain hard with the jeweler in order to be NOT cheated!
Sell the gold jewelry in the same shop where it was bought!
Selling in the same shop has 2 advantages: The jeweler cannot doubt the purity of gold; The jeweler may waive the melting charges
Note down the gold weight before and after the jewelry cleaning
Once you say the sales person that you’ve to exchange the old gold to get new one, he weighs the gold and comes up with a rough estimate of how much worth the old gold jewellery is.
If yours is an unused old gold, or was inside the bank locker for a long time, don’t accept for the 500 mg dirt weight reduction. If you don’t accept for the 500 mg of gold weight as dirt, you could save INR 1500 as of today.
The sales person gives you 2 estimates which is before and after cleaning
“Before cleaning, I personally noted my old gold weight from the meter which was 45.16 gms, but when the sales person gave me an estimate, 0.16 gms weren’t shown in the calculation (0.16 gms x 2832 Rs of gold / gm = INR 454).”
Tip: Compare the weight on your bill, and the one that’s on the estimate. You’ll get an idea whether it’s going to be a loss or gain.
Analyze the buy back estimate, and ask for break up
The sales person gives you a small slip with some calculations on it. They say 1 % melting charges, and remaining wastage charges
“When I saw the buy back estimate slip, it literally looked like Greek and Latin. I had no idea on how the calculations was made. And then when I asked for the break up, the sales person wasn’t able to explain, he went inside and brought his supervisor to explain” – What if I had said yes blindly ? I would’ve lost my hard-earned money.
Compare your invoice amount and the buy back estimate
Compare the old gold jewelry bill weight + amount, and the current estimate. If the purchased amount is higher than buy-back amount, you are losing money.
Bargain on the Charges they impose
When the sales person starts explaining the break up, he explains you about the wastage charges, melting charges or any other charges
“They say melting charges is 1%, but if the gold is sold in the same shop, then the jeweler could waive the melting charges”
The ground rule is, never agree to the buy back amount which is very less from the purchase amount. That’s going to be huge loss for you!