What Reduces the Value of Your Gold When You Sell Gold? Hidden Factors Explained
Selling gold may seem simple, but many people end up receiving less than they expected, even when the gold price is high. Several hidden factors affect the final gold value, especially if you’re selling gold for the first time.
If you’re planning to sell gold or looking for cash for gold services, understanding these factors can help you avoid unnecessary losses and get a fair price.
1. Gold Purity Has a Direct Impact on Gold Value
Gold purity is the biggest factor that determines how much you get when you sell gold.
- 24K gold offers the highest value
- 22K gold is common for jewellery
- 18K or lower means reduced resale value
Many sellers assume their jewellery is 22K, but after testing, the purity turns out lower, leading to an immediate price drop.
2. Making Charges Are Not Paid When You Sell Gold
When buying gold jewellery, you pay:
- Gold price
- Making charges
- GST
However, when you sell gold, buyers only pay for the gold content. Making charges are completely excluded, which is why designer jewellery fetches a lower resale value.
3. Stones and Diamonds Reduce Net Gold Weight
Jewellery often includes stones, diamonds, or enamel work. During resale:
- Stone weight is deducted
- Diamonds may be undervalued
- Some buyers offer zero value for stones
This lowers the final gold value, even if the jewellery looks heavy.
4. Gold Melting and Weight Deductions
Gold is melted to remove impurities. While some weight loss is normal, certain buyers exaggerate:
- Melting loss
- Refining charges
This results in unfair deductions and reduced cash payout.
5. Daily Gold Price Fluctuations
The gold price fluctuates daily based on global market conditions and demand. Selling on a low-price day can significantly reduce the amount of cash you receive.
Always check live gold rates before finalising a sale.
6. Selling Gold vs Choosing the Right Buyer
Not all buyers offer the same resale value:
Buyer Type
Local jeweller
Cash for gold companies
Pawn shops
Value Offered
Medium
High (if reputed)
Low
If you’re planning to sell gold in Rajajinagar, comparing multiple buyers helps you secure the best deal and fair gold value.
Why Choose True Gold Company When You Sell Gold?
One of the main reasons sellers lose money is a lack of transparency.
True Gold Company follows a fully transparent gold evaluation process:
- Live purity testing done in front of you
- Gold value calculated using today’s gold price
- No hidden deductions or inflated melting losses
- Clear weight and price breakup before payment
This transparency ensures you receive the true value of your gold, making True Gold Company a trusted choice for cash for gold services and selling gold for instant cash.
How to Get the Best Cash for Gold
✔ Check today’s gold price
✔ Know your gold purity
✔ Compare at least three buyers
✔ Ask for a detailed price breakup
✔ Avoid selling in urgency
Final Thoughts
When you sell gold, the final price depends on more than just weight. Purity, deductions, buyer type, and timing all influence your gold value.
By understanding these factors and choosing a transparent buyer, you can ensure you get the best cash for gold in Rajajinagar, Bengaluru, without hidden losses.
