Exchanging old gold? The gold price isn't the only thing that matters

Gold prices may be grabbing attention, but if you are thinking of exchanging an old jewellery, the rate you see on the board is not necessarily the amount you will get.

Purity, weight, deductions, making charges and the jeweller's exchange policy can all affect the final value.

Purity and weight matter

The Bureau of Indian Standards (BIS) says hallmarking is meant to protect consumers against irregular gold quality. Hallmarked jewellery carries a six-digit alphanumeric Hallmark Unique Identification (HUID) number, which can be checked through the BIS Care app.

The weight of the jewellery also matters. It may contain stones or other materials, so the total weight may not be the same as the net gold weight.

BIS says consumers can get their jewellery or a sample tested at a BIS-recognised Assaying and Hallmarking Centre (AHC). The testing is available on a chargeable basis, and the centre issues an assay report.

The gold rate displayed by a jeweller is only one part of the calculation. The final exchange value will depend on the purity and net gold content of the jewellery, along with the jeweller's exchange terms.

Making charges also need to be considered. The charges you paid when you originally bought the jewellery may not be included in its exchange value.

Before agreeing to the exchange, ask the jeweller to explain the gold rate being used, the net gold weight and any deductions.

Check the exchange policy

If you are unsure about the purity of your old gold, getting it tested at a BIS-recognised centre can also give you a clearer idea of its value before you proceed with the exchange.