Old Gold Buying Rate Explained
Understanding how old gold rates work is essential to making sure you get a fair deal. Many first-time sellers are confused by the difference between the gold rate they see on TV and the amount they actually receive. Here is a clear explanation of how old gold pricing works.
The gold rate you see on news channels and websites is the market rate for 22-karat gold as set by jewellery associations like MJDTA (Madras Jewellers and Diamond Traders Association). This is the rate at which new gold jewellery is sold. When you sell old gold, buyers deduct a margin from this market rate. This margin covers the buyer's operational costs including melting, refining, and reselling the gold.
The critical difference between gold buyers lies in how much margin they deduct. Large TV advertisers and chain stores typically deduct ₹200 to ₹500 per gram. This means on 50 grams of gold, you could lose ₹10,000 to ₹25,000 compared to a fair-margin buyer. Some buyers also add hidden charges like testing fees, handling charges, or making charge deductions that further reduce your payment.
At MSR Jewellery, our margin is just ₹20 to ₹50 per gram, which is the lowest in Chennai. There are no hidden charges, no testing fees, and no additional deductions. For example, if today's 22K market rate is ₹7,500 per gram, most buyers would pay you ₹7,000 to ₹7,300. At MSR, you would receive ₹7,450 to ₹7,480. On 50 grams, that translates to ₹7,500 to ₹24,000 more in your hands. This is exactly why we offer the ₹15,000 guarantee with full confidence.