Safe-haven appeal? Gold down 3% from ₹1-lakh mark: How to sell physical gold and book profit?

₹The surging prices of gold has increased the investment bet for traders over the safe-haven appeal. Gold is seen as an asset, not just for investment purposes, but also auspicious for Indian homes. According to analysts, India’s gold rally is a reflection of broader emerging market dynamics—currency pressures, inflation hedging, and rising geopolitical risks. For asset allocators, it’s a timely reminder that gold remains a critical buffer in uncertain times.

Amid the ongoing geopolitical scenario and rising demand of the yellow metal, gold owners also look for avenues for sell physical gold to encash the commodity and book profits. However nowadays, customers are finding it tougher to sell physical gold, because it is not easy and to get the prevailing price. 

Leading jewellers in India who take the precious metal from customers usually deduct the margin on the price. Hence, customers get chances to sell it lower than the prevailing price. However, commdoity experts and analysts have suggested some easy solutions by which customers can sell gold in a hassle-free manner.

Here’s your checklist on how to sell physical gold and book profits:

–What can customers do to sell physical gold in a hassle-free manner in the Indian market today? Especially those who own gold jewellery/gold bars?

Acording to Puja Singh, CEO, Manipal Fintech. (Earlier SahiBandhu Gold Loans), while purchasing the gold, customers should ensure their gold is BIS-hallmarked and maintain proper documentation to aid in accurate valuation. It’s best to approach trusted jewellers or certified gold-buying platforms that provide transparent valuation and offer rates according to daily market prices.

However, for those seeking liquidity without selling their gold, opting for a gold loan is a more secure and smarter solution.

Those who own gold jewellery should only approach those jewellers from where they purchased the same. Those who want to encash old gold/jewellery at jewellery shop should bring in old purchase bill along with detailed KYC , valuation report, purity certificates and declaration that encashed gold is not stolen property,” said Surendra Mehta National Secretary, India Bullion and Jewellers Association (IBJA).

–What are the major issues faced by local and leading jewellers when customers come to encash gold assets? Are there any tax/GST hurdles faced by jewellers in redemption of gold?

The biggest hurdle today is KYC of the person who has come to encash the gold. Apart from KYC it also needs to be seen that it is not stolen gold/jewellery. The deteeming purity of jewellery/gold is another matter of concern for jewellers when person comes to encash the gold.

Large and small Jewellers experience many challenges when customers convert gold assets into currency. The first challenge is determining purity, particularly when it comes to non-hallmarked jewellery, which often leads to disagreement on the actual value. Many pieces also have a making charge and a loss on design time, which reduces resale value. 

Jewellers also encounter compliance headaches when they buy back gold in excess of ₹2 lakh, since they are required to collect a PAN and KYC form, which many sellers are not happy to provide. “There are also GST issues, especially in separating the accounting of the buy-back from a fresh sale, which would affect input credit. Additionally, fear of scrutiny under income tax norms makes jewellers worry about the size of transactions, especially in the buy-back process,” said Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL)

—Why are customers facing difficulties to sell physical gold in India? What are the market-centric issues plaguing lenders and borrowers?

One of the primary concerns is the inconsistent purity standards and lack of hallmarking, which often result in disputes over value. Many buyers also deduct making charges or undervalue gold that contains stones or other alloys.

Additionally, the unorganized resale market leads to wide price variations and limited trust. Currently, there is no unified standard for jewellery and gold verification. This gap gives a massive opportunity for tech and AI-driven fintechs to work with regulators in developing a transparent, and trustworthy gold ecosystem, enabling smoother connections between borrowers and lenders.

Gold Prices Today

Gold prices slipped more than 1% on Friday after a stronger-than-expected U.S. jobs report dampened hopes for imminent Federal Reserve rate cuts this year, while silver soared to its highest level since 2012. Gold is considered a hedge against inflation and geopolitical uncertainty. But higher rates reduce the appeal of bullion as it yields no interest.

Spot gold fell 1.1% to $3,316.13 an ounce, as of 02:28 p.m. ET (1828 GMT), but rose 0.8% for the week so far. U.S. gold futures settled 0.8% lower at $3,346.60. Back home, domestic gold futures is now trading three per cent lower from its all-time record high mark of ₹1-lakh achieved last month on the multi commodity exchange (MCX).