Increasing gold prices are boosting traders’ investment in the metal due to its perceived safe-haven properties. In India, gold holds special auspicious value beyond its investment potential, reflecting broader emerging market dynamics such as currency pressures, inflation hedging, and geopolitical risks. For asset allocators, this further points out that gold continues to serve as a critical buffer during uncertain times.
However, with rising gold demand and escalating geopolitical tensions, it becomes increasingly challenging for customers to sell physical gold at market prices. This difficulty arises because, especially in recent times, clients are not easily able to negotiate lower prices for their gold.
Leading Indian jewellers charge a margin on the gold price, making it difficult for customers to sell below the prevailing market rates. This is adding an extra layer of difficulty for gold owners to quickly sell their commodities and garner profits.
To make things easier, experts suggest the following steps that can help customers sell physical gold hassle-free:
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Ensure Gold is BIS-Hallmarked & Verify Proper Records: Before selling gold, it’s crucial that it is authorized, BIS-hallmarked, and backed by proper documentation. This ensures accurate valuation of the gold. It is advisable to approach established jewellers or certified platforms that provide transparency and market-based prices.
- Explore Gold Loan Options: For customers who wish to retain control over their gold but lack the liquidity, opting for a gold loan is a safer and more flexible solution. This option offers a more secure means to monetize their gold holdings without the immediate sale of physical assets.
When it comes to difficulties faced by local and large-scale jewellers, one of the most challenging issues is the KYC verification process. This includes ensuring that gold sought for redemption is not stolen property and that it’s not held in unmarked gold. Determining the purity of jewelry, especially non-hallmarked pieces, can also be an issue for many would-be builders as it often leads to disputes. Furthermore, there is a lack of organization in the resale market, leading to price fluctuations and thereby reducing trust among customers.
