Gold Buyback and Exchange Policies: What to Check Before You Buy

Gold jewellery is often bought with the future in mind. You may want to exchange it for a new design one day, or sell it when you need to. How much you get back depends on the jeweller's buyback and exchange policy. This guide explains the difference, the deductions to expect, and the paperwork that protects you.

Buyback vs exchange

• Exchange: you trade in old jewellery toward the purchase of new jewellery. The value of your old piece is deducted from the price of the new one.
• Buyback: you sell your jewellery back to the jeweller for money, without buying anything new.

Many jewellers offer better terms for exchange than for buyback, because the value stays with them as a new sale. Always ask about both.

Deductions to expect

When you exchange or sell gold, you usually will not receive the full price you originally paid. Common reasons include:

• Making charges are not refunded. You paid for design and craftsmanship, which cannot be recovered when the piece is melted or resold. Read Making Charges Explained.
• GST paid at purchase is generally not returned.
• Purity is tested. The value is based on the actual gold content, which may be checked with an XRF machine or other testing.
• Some jewellers make a deduction from the gold value for melting and refining, particularly for gold bought elsewhere.
• Stones are valued separately, often at a lower value than you paid, or sometimes not at all. See Plain Gold vs Studded Jewellery.
• The current gold rate applies, so the value depends on today's price, not the price when you bought.

What paperwork protects you

Good paperwork makes exchange and buyback smoother:

• Original invoice: showing purity, weight, stones and price. See How to Read a Jewellery Invoice in India.
• HUID and hallmark: hallmarked gold with a verifiable HUID is easier to value. Read How to Buy Gold Jewellery in India (2026).
• Certificates for diamonds and gemstones.
• The jeweller's written policy, ideally printed on the invoice or provided separately.

Keep these documents safe for as long as you own the jewellery.

Questions to ask

Ask these before you buy, and get the answers in writing:

1. What is your exchange policy for this piece?
2. What is your buyback policy, and how does it differ from exchange?
3. What deductions apply, and how are they calculated?
4. How will stones be valued on exchange or buyback?
5. Do you accept jewellery bought from other jewellers?
6. How do you test purity?
7. Does the policy change over time, or with the type of piece?

For selling old family jewellery, read Exchanging Old Gold: How the Process Works, Step by Step and Antique and Old Gold.

At Tibarumal & Sons Jewellers, Shaikpet, we explain our exchange and buyback terms clearly before you buy. See The Tibarumal & Sons Promise.

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