How to Sell Old Gold in Bangalore for the Best Price

Updated 22 October 2026 · Reviewed under our editorial policy

Selling old gold is simple, but the amount you are offered can vary a lot from one buyer to the next. Knowing how buyers work out the price helps you spot a fair offer.

Where you can sell gold in Bangalore

• The jeweller you bought it from. Many jewellers have a buy-back or exchange policy for their own jewellery, especially if you still have the original bill. Ask what they deduct.
• Other jewellers. Most established jewellers buy old gold, usually preferring to give you new jewellery in exchange.
• Gold-buying companies. Specialist “cash for gold” businesses buy gold for an immediate payout. Compare their offer with a jeweller’s before you agree.

Banks sell gold coins but generally don’t buy gold back from customers. They offer gold loans instead, which may suit you if you need money only for a while.

How a buyer prices your gold

1. Weighing. The piece is weighed on a calibrated scale, which you should be able to see. Stones, beads and lac are not gold, so their weight is deducted.
2. Purity testing. Buyers test purity with an XRF machine (non-destructive) or, for a firm sale, by melting a sample. Hallmarked jewellery makes this quicker and the result easier to trust.
3. Rate. The buyer applies their buying rate for the tested purity. Buying rates are usually a little below the selling rate you see on boards and on our gold rate page.
4. Deductions. Some buyers deduct a percentage for melting loss or wear. Ask for every deduction to be listed.

Example: a 20 g 22K chain with 1 g of beads has 19 g of gold. At a buying rate of ₹13,000 per gram for 22K, that is ₹2,47,000 before any deduction. A 2% deduction would bring it to ₹2,42,060. The rate here is for illustration only; use today’s rate.

Exchange or cash?

• Exchange (old gold towards new jewellery) often gets a better valuation, because the jeweller makes money on the new piece. You’ll still pay making charges and GST on the new jewellery.
• Cash or bank transfer is simpler if you don’t want new jewellery, but offers tend to be lower. Large amounts are usually paid by bank transfer.

Get the purity tested first

If your jewellery is old or unhallmarked, you can have it tested at a BIS-recognised Assaying and Hallmarking Centre for a small fee. A test report gives you an independent purity figure to compare with the buyer’s test. Our hallmark guide explains how this works.

Documents to carry

• A photo ID and your PAN. Buyers carry out KYC on purchases.
• The original bill, if you have it. It helps prove ownership, and some jewellers give better buy-back terms on their own bills.

Tax on selling gold

Profit from selling gold is a capital gain:

• Held for more than 24 months: long-term capital gain, taxed at 12.5% without indexation.
• Held for 24 months or less: short-term capital gain, added to your income and taxed at your slab rate.

The gain is the sale value minus what you paid, so keeping purchase bills matters. Rules can change, so check with a tax adviser for large sales. This guide is general information, not tax advice.

Tips for a fair deal

• Check today’s gold rate before you go, and get offers from at least two buyers.
• Watch the weighing and ask for the purity test result in writing.
• Ask for the rate per gram, the gross and net weight, and all deductions on the receipt.
• Don’t sell under time pressure. A good buyer will hold their quote while you compare.

Sources

• PIB: consumers can get un-hallmarked jewellery tested at hallmarking centres
• Income Tax Department: capital gains

Check today’s prices: gold rate today in Bangalore · gold price calculator