Gold prices in India have risen significantly in the last couple of years and can be seen as a good time to sell any possession of the yellow metal for cash. It could be especially helpful if you are currently in need of money to make ends meet or have a large expense like vehicle purchase or wedding to fund.
There are places in India where you can sell gold for cash. However, if you have lost your bill from the time of purchase of the gold coin/ bar or jewellery or if the jewellery you hold may have been handled to you as gifts or ancestral wealth, you may be in a fix.
Most jewellers will ask you to present the bill of purchase to avoid conflict of interest on the purity of the metal. It also makes it impossible for the jeweller to deny the right value of the metal as per present rates.
What can you do if you do not have the bill for the gold purchase?
In case you do not have the bill, you can sell the coin, bars or jewellery with an established jeweller but only in exchange for gold purchase at their stores. These stores melt the metal in front of you to check its weight and purity. However, note that you will have to incur melting charges, making charges, wastage, etc.
Even in case of exchanging gold for gold, your best option is always to sell jewellery or any precious metal or gems to the store that you purchased it from. It could be in the form of coin, bars or jewellery.
If you had purchased the coin/bar from a bank, you will not be able to sell it back them as they do not trade in it.
There are some places like gold buying companies that do take gold for cash if you present valid ID proof. Pawnshops/ gold buyers are your bet in case of an emergency need for cash. However, you should make sure the gold buyer is a registered company as there are shops that engage in malpractices and give you lower than market price.
It is good to compare rates and be an informed customer. If not the news, you can simply call a reputed gold retail shop to find out the current rate in the market. Ask more than one store to get the best value.
Before you sell, you may want to check if the jewellery is hallmarked. Hallmarking establishes the purity of gold in any form and is indicated by the 916 mark (which means 91.6% purity or 22-carat gold) on the jewellery/coin/bar or the hallmark symbol.
If your gold is not hallmarked, and you do not want to risk directly going to the seller, you can go to a registered hallmarking centre available on the Bureau of Indian Standards (BIS) website and check for purity. If you live in Mumbai, you can go to the Bombay Bullion Association, located at Zaveri Bazaar. You will receive a certificate with the details regarding the purity of gold and proportion of various other elements (silver, copper etc) other than gold in the coin or jewellery you present.