I have some old Tanishq jewellery that I want to sell to a local family jeweller. Will I get the full value of the gold back, or are there deductions?
No, you will not get the full value back when selling Tanishq jewellery to an outside jeweller. You should expect a significant deduction from your original purchase price. This is primarily because the making charges and GST you paid are non-refundable, and the final value is based on the net weight of pure gold at the current market rate.
The Biggest Loss: Non-Refundable Making Charges and GST
My friend recently sold an old Tanishq chain to a local jeweller to fund a new purchase. The first thing the jeweller explained to her was that the making charges and the GST she paid when she originally bought the chain are non-recoverable costs. If the making charge was 20% of the gold’s value, that amount is immediately lost at the time of resale.
The Process of Valuation by an Outside Jeweller
I was with my friend at the jeweller’s and saw the valuation process. The jeweller first weighed the chain to determine its gross weight. He then performed a touchstone or melting test to confirm its exact purity (e.g., 22-carat or 91.6% pure). He explained that his final offer would be based on the net weight of the pure gold in the chain, calculated at his buy-back rate for that day.
Expect a Significant Deduction from Your Purchase Price
My friend had originally paid approximately ₹60,000 for her chain a few years ago. After accounting for the lost making charges, GST, and the difference between the purchase and selling rates of gold, the final amount the local jeweller offered her was around ₹48,000. This demonstrated that you should always expect a substantial difference between your purchase price and the final resale value of any gold ornament.
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