Last Updated on December 2, 2022 by azamnie
Obtaining cash for gold is a popular option among people to manage unexpected emergencies, such as marriage expenses, medical bills, unplanned trips, etc. In India, gold is a valuable item for investments. Nearly all households in India have gold jewellery, and it can help to obtain a particular amount of credit.
Cash against gold is provided by multiple non-banking financial institutions to help people meet their emergency financial needs. Through these lenders, you can instantly get cash for gold via a 100 per cent transparent process. Further, you can quickly sell your gold items by visiting the concerned lender. All you need to do is search on Google and find the branch nearest you. For instance, if you are in Kolkata, you can search for ‘sell gold for cash’ and visit the nearest office.
However, here are seven things you must consider before selling gold in India.
Table of Contents
1. Sell the whole item and not just gold
Some lending institutions tend to discard the stones on the gold item and are only interested in the metal’s value. They may remove the stones attached with the gold ring you sent, thus preventing you from obtaining your gold item’s full value. Therefore, it is essential to assess the value of the items that come with your gold accessory before selling it.
2. Best time to sell the gold
The price of gold fluctuates according to market conditions. Therefore, it is essential to consider the economy and sell gold when the rate increases. If you think that the times are hard, you can wait and hold your gold until the price rises.
3. Compare various lending institutions
Several lenders available in the market are ready to buy your gold in exchange for cash. First of all, always consider a reputable lender and ask them to check your gold item’s purity and value. You will get an idea of the base price of the gold. After that, shop around and compare the options provided by different lenders to get the most affordable deal.
4. Know your buyer
Once you have shortlisted a lender, make sure to know about their gold selling process. The process usually includes visiting the lender’s branch, cleaning of gold items, checking the weight and purity of gold, valuation of items based on gold rate, and finally, the disbursement of the amount instantly to your bank account via NEFT/IMPS/RTGS. Also, consider how the gold items are cleaned and melted before selling. For example, Muthoot Gold Point offers free ultrasonic cleaning of gold ornaments and uses high-quality crucibles that do not retain any gold after melting.
5. Know the fine print
Next, you must check the fine print thoroughly. Make sure to check all the terms and conditions of the shortlisted lender. Before sending your gold items, take photos, and find out how many days you have to wait before you get reimbursed. Also, ensure you have all the paperwork and filings.
6. Keep your karats separate
It is another major consideration while selling your gold in India. Many lenders will weigh jewellery of different karat value and pay you for the lowest value. However, ethical lenders will weigh each item individually. So, it is recommended to research the buyer and choose one who helps you.
7. Bring your Identity proof
While selling your gold for cash, many lenders will ask you for your government-issued identity proof. This is done for preventing the sale of stolen gold ornaments and money laundering. Thus, make sure that the lenders comply with these rules and ask for your IDs before buying your gold items.
Availing cash for gold is one of the most lucrative options to cover the temporary financial crunch. Obviously, you don’t want to get a low value against your gold. Thus, consider the above seven pointers before selling your gold items to a particular lender.