Whom to Sell Gold – Gold Buyers or Other Gold Dealers?

Many people in India invest in gold because it is fast and easily convertible into actual cash. When a person with gold is in any form of financial problems – gold is the best resolution. Now the next question you need to answer is to whom should you sell your gold to – gold buyers or other gold dealers.

When you are about to sell gold in Bangalore, you will encounter three different gold dealers. The three types of gold dealers are – gold buyers, pawn shops and jewellery stores. When you choose one of them, you should know that each of them deals with the gold you are about to sell differently. 

Before we sum up who is the best option to sell your gold, let us know how each of them deals with them.

Who are Gold Buyers, Jewellers & Pawn Brokers?

Gold Buyers:

If you want to sell your gold for the price of that day, then gold buyers are the right option for you. You can collect your cash for gold on the same day itself. Some of them also help you release pledged gold and then buy it from you. They buy your gold in any form. It can be whether ornaments (like chains, rings, bracelets, etc.), scrap jewellery, coins or anything that has gold.

Jewellers:

These are gold dealers from whom you can purchase gold. When you go to the jewellery store, they will accept to buy your gold, but not for cash. It is merely for exchanging your old gold for new jewellery ornaments.

Pawnbrokers:

These are gold dealers that help you pledge your gold. Pledging gold refers to getting a loan amount for keeping your gold as collateral. You need to pay interest for the amount you have borrowed.

Now let us understand who is the best one among these to sell your gold to.

Original Payment Receipts:

When you arrive at the gold dealer’s store, they will ask for your gold and other documents to prove it’s yours. After furnishing the required documents, you can expect to get the right value for your gold.

Sometimes it so happens that you have misplaced your receipts. To overcome this situation, go to your jeweller and request for a duplicate copy of your invoice.

A gold buyer will really want to see your receipt before they can give you cash for gold. If you cannot furnish your receipt, you won’t be able to sell it for the right price.

Other gold dealers such as pawnbrokers or jewellery stores will help you sell it without the compulsion of an invoice. But know that you won’t receive the complete amount that you are expecting. 

Cash Payment Methods:

Once you accept the value offered by the gold dealer, expect a payment as cash. You should always expect cash payments within less time, i.e., within 12 hours. 

Each of the gold dealers pays for your gold, but some of them pay less than what it is worth. Gold buyers help you get the actual worth of your gold with no unnecessary deductions. They also use payment methods that can help you get your cash for gold within lesser time.

Whereas other gold dealers would not be the same way. A pawnbroker would actually deduct a few bucks for unnecessary things. This would make you end up with very little amount for your gold. You would receive your payment, but it is cash or delayed payments.

A jeweller would never help you get cash for gold. They will only help you get new ornaments replacing your current one. There is no payment done to you, but you are paying the excess amount that would be due.

Transparent Process:

When you enter a gold dealer’s store, you would hand over your gold items. After handing it over, see a transparent process. A transparent process is such that everything happens in front of you. If you see things going out of sight, we recommend you to ask back for your gold and exit the store immediately.

A gold dealer provides complete transparency with their entire process. They clean, weigh and evaluate your gold in front of you. This way you have a clear sight of your gold and nothing can be pulled out of it without you knowing of it. 

Contrary to that, other gold dealers would only directly weigh it, not even in front of you. You might get tricked during this while losing out on a few gems attached to your gold. 

Evaluation Process:

This is one of the fundamental things you need to look out for before you can sell your gold. First, make sure if any gemstones or any other things attached to your gold are present, then they are given to you. After that, the gold dealer should clean your gold and then weigh it.

Also another factor to consider is purity testing your gold. If the gold dealer does not have modern technology, they will only ask you to go to goldsmiths to test it. That should not be the case with your gold.

Gold buyers will first remove all of this and hand it over to you or sometimes remove them and buy them from you. But when the gold is on the weighing machine, there should be nothing else. Next, they check the purity of your gold using German technology and karat meters. After that, they evaluate the gold value.

The other gold dealers don’t care about your gems. They will pull it out carelessly, as they care for your gold. Once removed, you might find out some gemstones might be missing.

Conclusion:

It is always good to approach a gold buyer when you are about to sell gold. The reason is, as you read from the above pointers, there are the least number of times you can get tricked by a gold buyer. But if you choose any other gold dealers, then there are many chances you will lose the expected amount your gold is worth.

With no extra charges for melting your gold or testing its purity, you can expect a good value for your gold from a gold buyer.