Old Gold Exchange: How It Works and What to Check

Many families hold gold they no longer wear: a necklace that is out of style, a single earring, an old chain. Exchanging it towards new jewellery is common and sensible. A little preparation makes it smoother and fairer.

How an exchange works

1. Purity testing: the jeweller tests the piece to find its gold purity.
2. Weighing: the piece is weighed. Stones and non-gold parts are removed from the calculation.
3. Valuation: the gold content is valued at the day's rate for that purity.
4. Deductions, if any: the jeweller may deduct for things such as melting loss, impurities or the cost of removing stones.
5. Credit: the value is credited against your new purchase, or paid out, depending on the arrangement.

A fair exchange is one where purity is assessed and the piece is weighed in front of you, and the value is worked out at the day's rate.

Why purity testing matters

Old pieces may not be the purity you remember. A piece bought decades ago may be 22K, 20K or lower. The valuation depends on the actual figure. Ask how the piece is tested, and ask to see the reading. Our guide to how to check gold purity explains the methods.

What deductions are reasonable?

Deductions depend on the condition of the piece:

• Stones and non-gold parts are not counted as gold.
• Solder and impurities in old pieces can mean the net gold content is a little lower than the weight suggests.
• Melting loss may be applied if the piece is to be melted, although practices differ between jewellers.

The point is not to avoid deductions altogether, but to have them stated clearly and in numbers.

Making charges are not returned

In an exchange you are paid for the gold content. The making charges you paid originally are generally not returned, because they paid for labour rather than gold. This is why it is worth checking how much making charge applies to a new piece, so that it does not erase the benefit of exchange. See gold making charges explained.

Questions to ask

1. What rate will be used, and is it today's rate for my purity?
2. How will purity be measured, and can I see the reading?
3. What deductions will apply, and how much in numbers?
4. Is the value final, or subject to melting results?
5. Will I get a written valuation slip?

Documents to bring

• The original bill, if you have one.
• Any certificate for stones.
• Identification, as required for transactions.

Exchanging versus redesigning

Instead of exchange, you may prefer to keep the same gold and have it reshaped into a modern design. That keeps its sentimental value and you pay mainly for the work. Read redesigning old family jewellery into modern pieces.

Common questions

Can I exchange a single earring or a broken chain? Yes. Gold is valued by its content, so a broken or odd piece is worth its gold weight at its purity, less any stated deductions.

Do I need the original bill? It helps, because it shows the purity and weight at purchase, but it is not essential. The piece is tested again at exchange.

Is it better to exchange or to keep old jewellery? If you wear it and love it, keep it. If it sits in a locker and you want something new, exchange or redesign makes use of the gold.

Getting started

If you would like to find out what your old jewellery is worth in exchange, book an appointment and bring a few pieces. There is no obligation, and you can compare the exchange value with your options. You can also look at our rings to see what you might choose.