Why Jewellers Deduct Melting Charges on Old Gold

When you sell old gold jewellery, the amount you receive may be lower than you expected because of deductions such as melting charges, purity adjustments, or other valuation-related costs. Understanding why jewellers apply these deductions can help you compare offers and make a more informed decision when selling your gold. Knowing how your jewellery is tested and valued is especially important if you want to receive a fair price.

At Midas Gold Point, Angamaly, we help customers understand the old-gold selling process, including purity testing, weight assessment, and market-rate-based valuation. In this blog, we explain what melting charges are, why some jewellers deduct them, what to check before selling your gold, and how you can avoid unnecessary deductions.

Melting charges are fees that some gold buyers or jewellers may deduct when purchasing old gold jewellery. These charges are generally associated with processing jewellery so that the gold can be recovered, refined, or reused.

However, melting charges are not the same everywhere. Some buyers may include processing costs in their pricing method, while others may apply separate deductions. The actual amount you receive depends on the buyer's valuation policy, the purity and weight of your gold, the current market rate, and any clearly disclosed charges.

Before agreeing to sell, ask the buyer to explain every deduction and show how the final amount has been calculated.