When you decide to sell your gold jewelry in Pakistan, understanding the various deductions applied during the evaluation process is crucial for making informed decisions. Many gold buyers in Karachi and across Pakistan apply different types of deductions, and knowing about them beforehand can help you get the best deal for your precious jewelry.
This comprehensive guide will explain all the common deductions you might encounter when selling gold jewelry in Pakistan, so you know exactly what to expect.
Why Do Gold Buyers Apply Deductions?
Gold jewelry isn’t 100% pure gold. Most pieces contain other metals, materials, and impurities that affect the actual gold content. Professional gold buyers need to account for these factors to determine the true value of your jewelry’s gold content.
Common Deductions When Selling Gold Jewelry in Pakistan
1. Gemstone and Enameling (Mina) Deductions
One of the most significant deductions applies to jewelry containing gemstones or decorative enameling work (known as mina in Urdu). Here’s what gets deducted:
- Gemstones: Diamonds, emeralds, rubies, and other precious stones. In case of Diamonds or other precious gemstones, you can negotiate a different rate.
- Semi-precious stones: Including glass pieces and artificial stones, which have no inherent value and thus are deducted from weight.
- Enameling work (Mina): Colorful decorative work applied to gold surfaces.
- Adhesive materials: Sometimes glue is used to secure gemstones, which also gets deducted from the total weight.
The deduction varies depending on the size and amount of non-gold materials in your jewelry. Gold buyers usually estimate the weight on the upper side to keep themselves on the safe side, which is not a bad thing, no one likes to bear a loss. However, you can ask the buyer to take out all the gemstones and apply heat to the jewelry to burn away the glue and adhesives. This will give an exact weight of the gold, resulting in a better rate.
2. Dust, Dirt, and Foreign Particles
Daily wear can cause various particles to stick to your gold jewelry, specially jewelry that is worn on a daily basis, like bangles. Some examples include:
- Kitchen residue: Flour particles from kneading dough (atta) while cooking roti
- Cosmetic residue: Makeup, creams, and lotions
- Dust and dirt: Environmental particles that accumulate over time
- Soap and cleaning product residue
Again the buyers can use a burning torch to burn away these impurities getting the right weight without it.
3. Silver Stitches (Tankay) and Lower Purity Soldering
Traditional Pakistani gold jewelry often uses different joining methods:
- Silver stitches (Tankay): Silver wires used to join different parts of jewelry, this is not done in modern jewelry but was very common in the old days, so if you are selling jewelry that is a few decades old, you can expect it to have silver stitches.
- Lower purity kadium: Soldering material with lower gold content used in construction, it’s same as the silver stitches but is used in modern jewelry. It’s basically a mix of gold and kadium, which is another metal. This mix of gold and kadium are high flexible and easy to melt to be used to join gold pieces to form jewelry. It’s very common for jewelry manufacturers to use the matching purity of kadium and they usually put in a difference as big as 4-10 karat, for example if the jewelry is of 21K, it’s possible for the kadium joints to have 12K purity of gold.
- Joining materials: Any non-gold materials used to assemble the jewelry pieces, for example copper wires to hang gem ornaments and such.
These materials have little to no gold content, except the gold kadium stitches, and are deducted from the total weight. There is no way to have an exact weight of the stitches, so we usually resort to estimations in these cases.
4. Purity-Based Weight Deductions
Gold jewelry comes in different karats, and deductions are made based on the non-gold content:
- 24K Gold: Pure gold (no deduction for purity)
- 22K Gold: Contains about 8.33% other metals
- 21K Gold: Contains about 12.5% other metals
- 18K Gold: Contains about 25% other metals
For example, if you have 21K gold jewelry weighing 10 grams, approximately 1.25 grams would be deducted for the non-gold content.
5. Market Rate vs. Spot Price Difference
This is an important deduction many people don’t understand:
- International spot price: The global market price for pure gold
- Local market rates: Pakistani market rates which are typically lower
- Currency fluctuation impact: Dollar to PKR exchange rate effects
- Import duties and taxes: Additional costs factored into local pricing
The difference between international spot prices and local Pakistani market rates can result in a 2-5% deduction.
6. Profit Margin and Error Allowance Deductions
Gold buyers need to account for business costs and potential assessment errors:
- Standard profit margin: Usually 3-8% for reputable buyers
- Error margin: To account for minor assessment variations
- Business operational costs: Rent, staff, equipment maintenance
- Quality-based deductions: Poor craftsmanship or damaged jewelry may see higher deductions (up to 20%)
Warning: Be cautious of buyers applying excessive profit margins.
How to Minimize Deductions When Selling Gold
– Clean Your Jewelry Beforehand
- Remove any dirt, dust, or foreign particles
- Clean with mild soap and water
- Dry thoroughly before taking for evaluation
– Choose Reputable Buyers
- Look for established businesses with physical locations
- Ask for detailed breakdown of all deductions
- Get multiple quotes for comparison
– Understand Your Jewelry
- Know the karat rating of your pieces
- Be aware of any gemstones or decorative work
- Understand the construction methods used
Red Flags to Watch Out For
Be cautious of gold buyers who:
- Don’t explain their deduction process clearly
- Apply excessive profit margins (above 20%)
- Refuse to show you the weighing process
- Operate without proper licensing
Why Choose Gold2Cash.pk for Selling Your Gold in Karachi?
At Gold2Cash.pk, we pride ourselves on transparency and fairness:
- Clear explanation of all deductions before finalizing any transaction
- Expert appraisal by experienced professionals
- Competitive rates with minimal profit margins
- Instant cash payment within 10 minutes
- No hidden fees or surprise deductions
- Safe and secure transaction process
Our Location and Contact Information
Visit our outlet for a transparent, no-obligation assessment:
Address: Shop G-79, Gulf Shopping Mall, Clifton, Karachi
Phone: 0339-4099917
Process: Free evaluation with detailed deduction breakdown
Conclusion
Understanding deductions when selling gold jewelry in Pakistan helps you make informed decisions and get fair value for your precious items. While deductions are standard practice, choosing a reputable, transparent buyer like Gold2Cash.pk ensures you receive honest evaluation and competitive rates.
Remember, the key to getting the best deal is understanding what you’re selling, knowing the current market rates, and choosing a buyer who explains every deduction clearly.
Ready to sell your gold jewelry at fair rates with complete transparency? Visit Gold2Cash.pk in Clifton, Karachi, or call us at 0339-4099917 for an instant, no-obligation quote.
Looking to sell silver jewelry too? We also purchase all types of silver jewelry and silverware at competitive rates. Contact us for more information about our silver buying services.