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Are You Exchanging Old Gold For New? Know The Hidden Costs First
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News18•14-10-2026, 08:27
Are You Exchanging Old Gold For New? Know The Hidden Costs First
- •Exchanging old gold for new jewelry incurs an additional cost of 15 to 20 percent including making charges and GST.
- •The concept of getting one tola of new gold for one tola of old gold without extra charges is practically incorrect.
- •Experts advise against exchanging old gold unnecessarily unless required for special occasions or if it no longer fits.
- •Gold serves as a better inflation hedge compared to bank deposits and traditional savings schemes.
- •Buying gold coins or bars is better for pure investment as they have lower making charges compared to jewelry.
Key Questions Answered
When exchanging old gold for new jewelry, hidden charges such as 15 to 18 percent wastage, making charges, and GST apply, resulting in an overall additional cost of 15 to 20 percent.
Experts advise that old gold should not be exchanged unless genuinely necessary for occasions like housewarmings or birthdays, as gold is a valuable asset whose value continuously increases over time.
Gold coins or bars have low or no making charges and wastage compared to jewelry, making them better for pure investment and easier to sell when needed.
