How to Sell Used Gold at the Best Price: A Practical Guide
Learn the steps to sell used gold: work out its value first, compare offers, selling vs exchanging, deductions for stones and scrap gold, with a worked example.
By Editorial team7 min read
To sell used gold at the best price, start by knowing today's buying price for the karat of your piece, have it weighed on an accurate scale in front of you, and compare offers from two or three shops before you decide. The difference between offers may look small per gram, but it multiplies with the weight, and good preparation prevents unjustified deductions and protects you from untrustworthy buyers.
Know your reference price first
Before you walk into any shop, work out the value of your piece yourself. Find the karat stamped on it (such as 21 or 18), then look at today's gold price and the 21K gold price per gram if your piece is of that karat. Keep in mind that a shop sells at one price and buys at a slightly lower one, so the reference you need is the buying price, not the selling price.
The formula is simple: weight × the shop's buying price per gram for the same karat. That is the approximate amount you should expect before any deductions.
How do you work out the value of other karats?
24K is practically pure gold, and the other karats are measured against it. If you know the price per gram of one karat, you can estimate another in proportion:
| Karat | Pure gold content | Approximate price-per-gram calculation |
|---|---|---|
| 24 | about 100% | The base price |
| 22 | 91.7% | Base price × 22 ÷ 24 |
| 21 | 87.5% | Base price × 21 ÷ 24 |
| 18 | 75% | Base price × 18 ÷ 24 |
This is an approximate calculation to help you anticipate the offer, but the shop sets the actual buying price, so rely on the published buying price for the same karat whenever you can.
Steps to sell
- Identify the karat and weight. Check the hallmark on the piece, and if it is not clear, ask for the karat to be tested in front of you.
- Check today's price for your piece's karat. Prices change during the day, so keep note of the figure you looked up.
- Prepare the invoice and the original box if you have it. They make it easier to verify the karat and origin.
- Compare at least two or three shops, and ask each one what price per gram they will pay you.
- Have it weighed in front of you on an accurate scale you can see, and do not let your piece out of your sight.
- Ask for the calculation in detail: weight, karat, price per gram, and any deduction and the reason for it.
- Ask for a written receipt containing the details above before you take the money.
What affects the offer you receive?
The offer does not depend on the price per gram alone. The condition of the piece, its karat, the presence of stones or solder, the amount of gold you sell at once and the shop's buying policy all play a part. One shop may give you a better price on a certain karat because it needs it, and another a better price on a different karat, which is why asking a single shop is not enough. Ask every shop about the same karat so you compare what can be compared.
Selling or exchanging?
Many shops offer an exchange: you leave your old piece, take a new one and pay the difference. That can be convenient, but compare carefully:
| Point of comparison | Selling for cash | Exchanging |
|---|---|---|
| What you get | A sum of money for the value of the gold | A new piece, with you paying the difference |
| Calculation | Weight × buying price | The value of the old piece is deducted from the price of the new one |
| Making charge | You pay no making charge | A making charge is added to the new piece |
| Ease of comparison | Clear and easy between shops | Harder, because the items overlap |
| What to ask | Are there any deductions? | At what price was the old piece valued? What is the making charge on the new one? |
Practical advice: ask for a price on your old piece separately and a price on the new piece separately, then compare the total. A shop may give you a good price for the old piece and raise the making charge on the new one, or the other way round.
Deductions: stones, wear and scrap gold
Stones and gems
The weight written on a piece, or shown on the scale, usually includes the weight of any stones. But a stone is not gold, so its weight is usually excluded from the calculation. Ask for the estimated stone weight and ask for it to be stated explicitly, so that more than is fair is not deducted.
Wear and scratches
Gold can wear down slightly with long use, and solder joints and earlier repairs can affect testing. If the piece is sound and desirable, the shop may buy it to resell as it is, while a damaged piece is priced as raw gold.
Scrap gold
"Scrap" means broken, old or incomplete pieces that will not be sold as they are, and they are usually priced by weight and karat because they will be melted and remade. The shop may ask for a small deduction for testing and melting, so ask about it openly and compare its size between shops.
Situations to avoid
- Unknown buyers online, on the street, or anyone whose address and reputation you do not know.
- Offers far above the market price; an exaggerated offer usually hides a condition or a trick.
- Meeting in unsafe places or carrying large amounts of cash after the sale without a plan.
- Rushing: do not let anyone pressure you into deciding on the spot.
- Handing over the piece before it has been weighed and the final price and detailed calculation have been agreed.
If you are looking for a trustworthy shop, choose one that gives you an invoice or receipt and carries out testing and weighing openly in front of you.
A worked example
For illustration only, suppose the buying price of a gram of 21K is 3,900 pounds and you have a bracelet weighing 20 grams. You collected three offers:
| Shop | Price per gram offered | Total (pounds) |
|---|---|---|
| Shop A | 3,880 | 77,600 |
| Shop B | 3,900 | 78,000 |
| Shop C | 3,920 | 78,400 |
The difference between the lowest and highest offer is 800 pounds, a difference that cost you only a few minutes of comparison.
In another example, a 21K ring weighing 8 grams has a stone estimated at one gram. If the shop prices 7 grams of gold at 3,900, the total is 27,300 pounds, whereas if the whole ring were priced as gold it would be 31,200. The difference, 3,900 pounds, is logical because the stone is not gold, but what matters is that the deducted weight is reasonable and stated openly. You can estimate these figures for your own piece with the gold calculator. These figures are illustrative only and are not today's price.
If you are thinking of buying a new piece in place of the old one, first read gold making charges: how they're calculated and negotiated to understand what gets added to the price of the new piece.
After agreeing the sale
- Count the money in front of the buyer before you leave, and check it matches the written calculation.
- Keep the receipt and a photo of it, since you may need it to document the transaction.
- If the amount is large, prefer documented methods such as a bank transfer over carrying cash, and confirm the money has arrived before handing over the piece.
- Do not change your mind under pressure after you have agreed; but before agreeing, you have every right to walk away and try another shop.
- If you kept the invoices of the old piece, keep them as a personal record even after the sale.
A final note
Gold prices change constantly, and the figures in this article are indicative and for illustration only, not a recommendation to sell or buy. Your decision depends on your needs and circumstances; what matters here is that you get what is rightfully yours through a transparent calculation.
Frequently asked questions
Do I need the invoice to sell used gold?
It is not always required, but it proves the karat, weight and origin of the piece, makes checking easier and protects you if you need to prove ownership, so it is wise to keep it.
Is it better to sell my gold or exchange it for a new piece?
There is no single answer. Compare the total in both cases: what your old piece will be credited at, and what making charge is added to the new piece, then choose what suits you.
How can I roughly know the value of my gold before going to the shop?
Multiply the weight of the piece by the current buying price per gram for the same karat. Expect the shop to offer a figure close to that or a little lower, depending on the condition of the piece and any deductions for stones or breakage.
How is broken gold (scrap) priced?
It is usually priced by weight and karat as raw gold, because it will be melted and remade, and a small deduction for testing or melting may apply depending on the shop. Always ask for the calculation in detail.
