Selling gold is a significant financial transaction. The amount you receive depends on the accuracy of the testing, the honesty of the valuation, and whether any undisclosed deductions are being applied. Asking the right questions before you commit gives you the information you need to make a confident decision.
This checklist applies to any gold buyer in Hyderabad or elsewhere. A professional, transparent buyer should be able to answer all of these clearly.
What testing method do you use to measure purity?
Why it matters
The testing method determines how accurately your gold's purity is measured. XRF (X-Ray Fluorescence) is the professional standard — it is fast, accurate, and non-destructive. Acid testing is an older method that is less precise. Some informal buyers estimate karat by visual inspection alone, which is not a reliable method.
What to look for
A professional buyer should tell you clearly: 'We use XRF testing.' If they cannot name the method or say 'we just check it,' be cautious.
Can I see the purity reading on screen?
Why it matters
Seeing the actual XRF result — the percentage of gold in your item — gives you verification that the reading is real and that the karat applied in the calculation matches the tested purity.
What to look for
A transparent buyer will turn the screen toward you or read out the exact percentage. If they only give you a general 'it's 22K' without showing the reading, ask to see it.
What is today's gold market rate per gram that you are applying?
Why it matters
The market rate is publicly available — it is the MCX gold rate for the day, converted to rupees per gram for 24K gold. A buyer should be able to state this number clearly. If they apply a rate significantly below the published market rate, ask why.
What to look for
Cross-check the rate they quote against the current Hyderabad gold rate on a reliable source before your visit.
What is the gross weight and net gold weight of my item?
Why it matters
You are entitled to know both the total weight of your item (gross) and the weight after deducting stones, clasps, and non-gold components (net gold weight). Only the net gold weight should be used in the calculation.
What to look for
If the buyer cannot give you both numbers separately, or if the net weight deduction seems very high for a simple piece, ask for a detailed explanation.
Are there any wastage or melting deductions — and why?
Why it matters
Wastage deductions represent a percentage reduction claimed for gold lost during melting. For a buyer using XRF testing (non-destructive), there is no melting loss during valuation — so this deduction is often applied as an unofficial margin.
What to look for
Ask specifically: 'Do you apply a wastage percentage?' If yes, ask what percentage and why it applies if you are not melting the gold.
Can I decline the offer after testing?
Why it matters
You should always be free to take your gold back after testing if you choose not to sell. A valuation is not a commitment to sell.
What to look for
A legitimate gold buyer will confirm this without hesitation. If any pressure is applied once testing begins, that is a red flag.
Can I receive payment via bank transfer?
Why it matters
For significant transactions, bank transfer provides a record of the payment. Cash payments above certain limits are also subject to regulatory requirements.
What to look for
Professional buyers offer bank transfer as an option. If only cash is offered without explanation, ask why.
A Note on Getting More Than One Valuation
Getting a valuation from more than one buyer before selling is a completely reasonable approach — especially for larger quantities or high-value pieces. The core inputs (purity from XRF, weight, market rate) should be consistent across professional buyers. Differences in the final offer usually come from buyer margins and deductions — which is where asking the right questions makes the difference.