When it comes to selling your old or unused gold, one of the most common questions people ask is: “How do buyers decide the value of my gold?” Understanding this process not only gives you confidence but also helps you ensure you’re getting the best deal. Professional cash for gold buyers follow a systematic and transparent approach to determine the correct value.
1. Purity Testing of Gold
The very first step is to check the purity of your gold. Buyers use advanced tools like the German XRF machine that can test the exact karat without damaging your jewelry. Gold comes in different purities such as 24K, 22K, 18K, or 14K, and its market value depends heavily on this purity level.
-
Higher purity (24K) = higher value
-
Lower purity (14K/18K) = lower value
2. Current Market Price of Gold
Gold rates fluctuate daily depending on the international market. Buyers always calculate your gold’s worth according to the live market price of gold on that day. This ensures you get the fair and updated value.
3. Net Weight of Gold
After checking purity, buyers measure the net weight of pure gold in your item. For example, if you bring a 22K gold chain weighing 10 grams, only the gold content is considered—not the weight of stones, gems, or any non-gold material.
4. Deduction of Stones or Other Metals
Many jewelry pieces come with stones, diamonds, or other metals. These are separated and not included in the gold valuation. Only the pure gold portion contributes to the final value.
5. Calculation Formula
The simplified formula looks like this:
(Net Weight of Gold × Purity × Current Gold Rate) = Final Value Offered
For example:
-
If you have 10 grams of 22K gold, and the current 24K gold rate is ₹6000/gram:
-
Pure gold content in 22K = (22 ÷ 24) × 10 = 9.16 grams
-
Value = 9.16 × ₹6000 = ₹54,960 (approx.)
-
This is how buyers arrive at the exact amount you will get.
6. Instant Payment
Once the purity, weight, and value are finalized, reputed buyers immediately provide payment through cash, bank transfer, or digital methods, ensuring a hassle-free process.
Final Thoughts
The value offered for your gold depends on purity, weight, and the current market price, with adjustments for stones or additional metals. By choosing a trusted and professional cash for gold buyer, you can be confident that the process will be transparent, fair, and quick.