Exchanging Old Gold: How the Process Works, Step by Step

Care
Written By Allison Lee

Many families have old gold jewellery that no one wears any more. Exchanging it for new jewellery is a practical way to put that gold to use. This guide explains how the process typically works, step by step.

Step 1: Purity testing

The first step is to find out exactly how much gold your old jewellery contains.

  • Weighing: the jeweller weighs each piece.
  • Testing: purity is usually checked using an XRF (X-ray fluorescence) machine, which is quick and does not damage the jewellery. Some jewellers also use traditional touchstone testing.
  • Hallmarked pieces: if your jewellery is BIS hallmarked, the purity is already marked, which makes the process simpler. See How to Buy Gold Jewellery in India (2026).

Ask to see the test results. You should know the purity and weight of your gold before any value is agreed.

Step 2: Deductions explained

The value of your old gold is based on its pure gold content and the current gold rate. From this, some deductions may apply:

  • Stones are removed and may be valued separately, or not included.
  • Non-gold parts, such as threads, wax or lac inside hollow pieces, are excluded from the weight.
  • Some jewellers apply a deduction for melting and refining, particularly for gold bought elsewhere.
  • Making charges and GST from the original purchase are generally not recovered.

Ask the jeweller to explain every deduction clearly, before you agree. Read Gold Buyback and Exchange Policies.

Step 3: Choosing new pieces

Once the value of your old gold is agreed, it is credited toward your new purchase:

The new piece is priced in the usual way: gold value, making charges, stones and GST. Your old gold's value is deducted from this total.

If your old jewellery has sentimental value, consider remaking it rather than exchanging it. See Heirloom Remaking.

Step 4: Paperwork

Make sure you receive clear documentation:

  • a record of the old gold, including weight, purity and value,
  • an invoice for the new piece, showing the exchange deduction, gold value, making charges, stones and GST,
  • the HUID of your new hallmarked gold jewellery.

See How to Read a Jewellery Invoice in India.

Before you visit

  • Bring any old invoices, if you have them.
  • Bring identification, since jewellers may need it for exchange transactions.
  • Separate pieces you want to keep from those you want to exchange.
  • Consider having heirlooms evaluated first. See Antique and Old Gold.

Book an exchange visit

At Tibarumal & Sons Jewellers, Shaikpet, we test your old gold in front of you and explain its value and our exchange terms clearly before you decide. To book a visit, message us on WhatsApp at +91 88855 00805.

Visit Tibarumal & Sons Jewellers, Shaikpet

Tibarumal & Sons Jewellers
Shop No. 102, 8-1-299/121, RP Business Park, Al Hamra Colony, Shaikpet, Hyderabad 500008

Hours: Monday to Saturday, 11am to 8:30pm
Phone: +91 88855 00805
WhatsApp: Message us on WhatsApp
Instagram: @tibarumalandsons

Allison Lee
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