How to Sell Old Gold in Kerala — Step by Step Guide 2026

Whether it's old jewellery you've inherited, broken pieces, or gold you bought years ago that you no longer wear — selling gold in Kerala is straightforward if you know how the process works.

How Jewellers Calculate Old Gold Value

The value you receive for old gold is based on three factors:

Purity (karat) — 22K gold gets a higher price than 18K
Weight — weighed on a certified scale at the shop
Today's board rate — the Kerala daily gold rate

Formula:

Old Gold Value = (Weight in grams × Today's rate per gram) × Purity factor

Purity factors:

24K: 100% of rate
22K: 91.6% of rate
18K: 75% of rate
14K: 58.5% of rate

Example: Selling 10g of 22K gold when today's rate is ₹9,200/gram: 10g × ₹9,200 × 0.916 = ₹84,272

Most jewellers will offer you 95–98% of this calculated value — the small deduction accounts for melting loss and their margin.

Use our Old Gold Exchange Calculator →

Documents Required to Sell Gold in Kerala

Since 2021, RBI regulations require PAN card for gold transactions above ₹2 lakh. For transactions below ₹2 lakh, only ID proof (Aadhaar is sufficient) is typically required by most jewellers.

Some shops may ask for:

ID proof (Aadhaar / PAN / Voter ID)
Address proof
Original purchase bill (not mandatory but helps)

Keep in mind that jewellers are required to maintain records of gold purchases for compliance purposes.

Where to Sell Old Gold in Kerala — Options Compared

1. Branded Jewellery Chains (Malabar Gold, Kalyan, Josco, Bhima)

Best for: Large quantities, transparency, fair pricing

Weigh on certified scales (you can watch)
Transparent testing (X-ray fluorescence or acid test)
Published exchange rates
Slight margin deducted (usually 2–3%)
Often use exchange credit toward new purchase at better terms

2. Local Jewellery Shops

Best for: Negotiating, quick cash

Rates can vary — always know today's board rate before going
Some shops offer cash, others offer account transfer
More negotiable on the deduction percentage

3. Gold Exchange Kiosks

Best for: Convenience

Found in malls and populated areas
Convenient but often offer lower rates (5–8% deduction vs 2–3% at established jewellers)

4. Banks (SBI, ICICI, etc.)

Best for: Certified purity coins or bars you originally purchased from a bank

Banks buy back gold coins they originally sold
Less flexible on jewellery

Tips to Get the Best Price for Old Gold

Check today's rate first — livegoldkerala.com gives you the official board rate. Never walk in without knowing it.
Get multiple quotes — visit 2–3 shops, especially for quantities above 20 grams. Even a ₹50/gram difference on 50 grams is ₹2,500.
Exchange vs. cash sale — most jewellers offer better rates (sometimes 100% of value) if you use the proceeds to buy new jewellery from them. Pure cash sales have a slightly higher deduction.
Test in front of you — any reputable jeweller will test the purity in front of you. Don't agree to purity testing done "in the back."
Original bill helps — having the original purchase receipt from a branded jeweller can sometimes get you a better rate since purity is documented.
Sell on high-rate days — gold prices fluctuate daily. If you're not in a rush, tracking the daily rate and selling on a high day can add up.

Tax on Selling Gold in India (2026)

Capital gains tax applies when you sell gold:

Short-term capital gains (held less than 2 years): Taxed as per your income tax slab
Long-term capital gains (held more than 2 years): 12.5% without indexation (as per 2024 Budget)

Keep your purchase bills — they're needed to calculate the cost of acquisition for tax purposes.

Avoid These Mistakes When Selling Gold

Don't accept a lower-than-board rate without asking why — always know the daily rate
Don't sell scrap gold to roadside buyers offering "best prices" — they often use inaccurate scales or manipulate purity tests
Don't let the weighing happen out of your sight — watch the scale reading yourself
Don't forget GST — when exchanging for new jewellery, GST applies only on the net balance (new value minus old gold value)