Gold At Record High! Want To Sell Your Jewellery To Make Gains? Check These Charges You Have To Pay First!

Gold prices in India are currently hovering at their highest levels due to the geopolitical situation, economic uncertainty and expectations of United States tariffs. The price of the expensive metal has moderated over the past two days, but experts have hinted that the bullion may create another record in the coming weeks. The high prices of gold must have forced many people to ponder whether it is the right time to sell their gold jewellery to make gains.
Selling gold jewellery comes with the cost of losing the amount you paid earlier as making charges or for the goods and services tax (GST). Other factors like the condition of the jewellery, its purity, and its rarity also impact the resale price of your gold jewellery.

Gold at a record high

Gold prices are hovering at an all-time high mark of above Rs 89,000. After decline in prices over the past five days, gold rates on Wednesday surged to Rs 89,400 per 10 gram for 24-karat gold. Whereas per 10 grams of 22-karat gold was sold at a price of Rs. 81,950 on Wednesday. Similarly, the 18-carat gold rates also rose by Rs. 80 to retail at Rs. 67,050.
International gold prices have increased over 15% and even surpassed USD 3,000 per ounce for the first time. Despite the mild softening of gold prices, experts opine that the price of the bullion is likely to make another record in the coming days.
"Gold is currently in a bullish phase, having the potential to scale new levels. Spot gold reached an all-time high of $3,051.99/oz. Fed is likely to resume rate cuts in June where it hinted two rate cuts in 2025. Hence, we reiterate our view of gold touching $3100 globally and INR 91,000 domestically," said Colin Shah, MD, Kama Jewelry.

What are the deductions on selling gold jewellery?

Looking at the high gold prices in India and considering its bullish outlook, if people are planning to resale their jewellery in the coming weeks, here are the costs they must consider to calculate their profit.

Making charges

Making charges are the amount for crafting the jewellery. It is the extra amount you pay at the time of buying your favourite necklace, earrings or ring. These charges typically account 10%-25% of the price of the jewellery.

Making charges of your jewellery is an irrecoverable loss at the time of its resale. Additionally, jewellery shop owners also levy a market price deduction, which is around 5% on making charges.

GST

Purchasing gold jewellery also attracts additional taxation under goods and services tax. Buying a jewellery attracts a GST of 3% of the price, whereas, additional GST is levied on making charges, which is around 5% of making charges. The amount you paid on GST (or any other tax like custom duty tax) while purchasing your jewellery will be excluded from gold jewellery's value.

Selling gold jewellery at the current price might look an attractive option for many, but people must calculate the actual amount they are likely to get after resale while considering loss due to GST and making charges.