Selling gold can feel overwhelming, especially when you are bombarded with conflicting information from TV advertisements, neighbours, and online sources. In Chennai alone, there are hundreds of gold buyers, each claiming to offer the best rate. This article separates the myths from reality so you can make an informed decision and avoid leaving money on the table.
Myth 1: TV Advertisers Pay the Best Rate for Gold
This is perhaps the most expensive myth for gold sellers in Chennai. TV advertisers like Attica Gold, GRT, and others spend between Rs 50 to Rs 100 crore annually on advertising. This enormous marketing cost has to come from somewhere, and it comes directly from the margins they charge on your gold.
Reality: TV advertisers typically charge a margin of Rs 200-500 per gram. On a typical 40-gram gold chain, that means you could lose Rs 8,000 to Rs 20,000 compared to a buyer with lower margins. Their flashy advertisements create the illusion of trustworthiness, but the rate they pay is often significantly below the MJDTA (Madras Jewellers and Diamond Traders Association) benchmark rate.
At MSR Jewellery, we spend a fraction on advertising and pass the savings directly to you. Our margin is only Rs 20-50 per gram, which means you receive Rs 150-450 more per gram compared to TV advertisers. On 40 grams, that is Rs 6,000 to Rs 18,000 more in your pocket.
Myth 2: Gold Rate Is the Same Everywhere
Many people assume that since gold is a commodity with a benchmark price, every buyer pays the same amount. This could not be further from the truth.
Reality: While the base gold rate (MJDTA rate in Chennai) is indeed the same for everyone, what varies dramatically is the margin each buyer deducts. Think of it like buying petrol where the base price is set by the government, but different states add different taxes. Similarly, the gold rate you see on TV is the market rate, but what you actually receive after the buyer deducts their margin can vary by hundreds of rupees per gram.
TV advertisers margin: Rs 200-500 per gram - Chain jewellery stores margin: Rs 150-400 per gram - Local gold buyers margin: Rs 100-300 per gram - MSR Jewellery margin: Rs 20-50 per gram
Always ask the buyer directly what their margin is. If they avoid the question or give a vague answer, that is a red flag.
Myth 3: You Need the Original Bill to Sell Gold
This myth prevents many people from selling gold they have inherited or received as gifts. Some buyers may even use this myth to offer a lower rate, claiming they are taking a risk by buying without documentation.
Reality: No law in India requires you to produce a purchase bill to sell your own gold. XRF (X-Ray Fluorescence) testing accurately determines the exact purity of your gold regardless of whether you have a bill. All you need is a valid ID proof like Aadhaar or PAN card. The bill only proves where you bought it, not what it is worth today. Read our detailed guide on selling gold without a bill at cashforgold.cc/knowledge/sell-gold-without-bill-chennai.
Myth 4: Old Gold Loses Value Over Time
Some sellers believe that gold jewellery that is 20, 30, or even 50 years old will fetch a lower price because it is old.
Reality: Gold does not degrade, tarnish, or lose purity with age. A 22K gold bangle made in 1970 has exactly the same gold content as a 22K bangle made yesterday. The only factors that determine value are weight and purity, not age. In fact, since gold prices have risen dramatically over the decades, your old gold is likely worth many times more than what was originally paid for it. The slight discolouration you might see on old gold is just surface oxidation of the alloy metals (copper, silver), not the gold itself. A simple cleaning reveals the original lustre.
Myth 5: You Should Wait for the Highest Rate Before Selling
Many people hold onto gold for months or even years, waiting for the price to peak. They follow gold rates daily, hoping to sell at the absolute highest point.
Reality: Timing the gold market perfectly is virtually impossible, even for professional traders and analysts. Gold prices are influenced by complex global factors including US monetary policy, geopolitical events, currency movements, and central bank purchases. While gold has a long-term upward trend, short-term movements are unpredictable.
Consider this scenario: you wait three months hoping for a Rs 200 per gram increase. During that time, the price drops Rs 300 per gram before eventually rising. You have lost money by waiting. Meanwhile, if you had sold at a buyer with a low margin like MSR Jewellery, you would have been better off selling earlier.
The smarter approach is not timing the market but rather minimising the margin. Selling at MSR Jewellery today at a Rs 30 margin is better than selling at a TV advertiser two months later at a Rs 300 margin, even if the gold rate rises Rs 200 in that period.
Myth 6: Chain Stores and Branded Jewellers Pay More Than Local Buyers
The assumption is that bigger means better and that a branded chain store will pay a higher rate than a local specialist gold buyer.
Reality: Big chains have massive overhead costs including expensive showroom rents in prime locations, large staff, corporate management, and heavy advertising budgets. These costs are funded by wider margins on both buying and selling gold. A local specialist gold buyer like MSR Jewellery, with 15 years of experience and over 50,000 customers, often pays significantly more because we have lower overheads and specialise exclusively in buying gold.
Big chains have showroom rent, staff, and advertising costs built into their margins - Local specialists like MSR Jewellery focus solely on gold buying with minimal overheads - The Rs 15,000 guarantee from MSR means if any chain store offers more, we pay you Rs 15,000
How to Protect Yourself From These Myths
Before selling gold in Chennai, follow these steps to ensure you get the best deal.
Check the live MJDTA rate at cashforgold.cc before visiting any buyer - Ask every buyer explicitly what their per-gram margin is - Get quotes from at least 2-3 buyers and compare the actual amount, not the advertised rate - Insist on XRF testing and watch the testing process yourself - Verify the weighing scale is BIS certified
Get the Best Rate at MSR Jewellery
Stop leaving money on the table. Visit MSR Jewellery at Porur or T. Nagar for the highest gold rate in Chennai with a margin of only Rs 20-50 per gram. Call 63690 25876 or start the process at cashforgold.cc/contact/city. Our Rs 15,000 guarantee ensures you will never get a better deal anywhere else in Chennai.