Selling gold back: how the payout is worked out
Why the buy rate is lower than the sell rate, what is and is not refunded, and what to ask before you hand a piece over.
You are paid for the gold alone, at the buy rate of the day. The making charge you paid when you bought the piece is not refunded, and stones are valued separately. Knowing this before you hand a piece over is most of what you need.
Two rates, not one
Every gold rate has a sell side and a buy side. The sell rate is what is charged per gram on jewellery; the buy rate is what is paid per gram for gold taken back. The buy rate is lower, in every shop. Both are on the rate page, and the rate moves through the day, so the same piece can be valued differently at ten in the morning and at four in the afternoon.
What is paid for
The gold content is valued at the buy rate for the piece's karat, on the day. Stones are assessed separately at inspection. The making charge covered turning metal into a finished piece, and that work is not bought back.
Under our own buy-back terms, a piece we sold is valued this way after we inspect its weight, karat and condition. It needs proof of purchase and has to be in re-saleable condition.
A worked example
For illustration only: a 21K piece weighing 10 g, on a day when the 21K buy rate is 80 JOD per gram, has a gold value of 800 JOD. Whatever making charge was paid at purchase is not part of that figure, and any stones are assessed separately.
What can lower the figure
A stamp that cannot be read, repairs with heavy solder, several karats in one piece, or damage can all lower the figure, because the karat has to be confirmed before the gold can be valued. It is one more reason to keep the invoice that names the karat.
Write down the time
Because the rate moves through the day, ask for the time of the valuation to be written next to the figure. It lets you compare it later with what the rate page shows.
Before you hand it over
- Ask which rate is being used, and compare it with the day's published buy rate.
- Ask for the weight and the karat to be read out and written down.
- Keep the original invoice. It is what proves the purchase.
- Ask for the figure in writing before you agree.
How this connects to the price
Because a piece is priced from its metal, the price can be read backwards, as the pricing guide shows. Once the sell price makes sense, the buy-back figure holds no surprise.