Gold is considered as a safe haven asset especially in times of uncertainty. Indians buy gold hoping that it will help at the time of a financial need help them. Many Indians buy gold as a safe instrument to use it at the time of need.
However, only few individuals sell gold and jewellery in need as there are facilities like a gold loan which is readily available. As many people attach sentimental importance to gold.
Many gold jewellery shops offer attractive rate if an individuals buy a new one in an exchange offer. This attracts many as trends change in due course of time and women believing going with the trend.
Before selling gold jewellery or buying in exchange of new, here are few pointers one should consider buying.
1) Find out How much is your gold worth
Before visiting the jeweller keep receipts ready with you. Check for the purity and wastage as the value of the gold would depend on the design and other things.
Hallmarked jewellery is always more valued than jewellery bought from local jewellers
2) Visit few shops
Do not just directly drop into a shop and sell youd gold jewellery. Try to visit few jewellery shops and get a fair value. Keep in mind that jewellery rates tend to change on daily basis.
3) Resale value
Resale value is calculated without considering wastage and making charges.
Moreover, retailers cut stipulated percent on the gold jewellery say 1 percent to 2 percent from the derived value on that particular day.
4) Don't believe anything over phone
You may try calling few jewellery shops and find out some rates.
But it is always better to visit so that you have more clarity on the amount and can clarify more doubts.
5 PAN Card
If you are purchasing or selling gold more than Rs 50,000, you need to submit your pan card copy as per RBI guidelines.
6 Reputated Shops
Some gold retailers only buy back gold which are brought only from their shops. There is a risk with local jewellers as they may any time shut shop without any notice.
As there are less chances of jewellers cheating as they have reputation in the market.