Most people in Dehradun, when selling gold, go to the nearest jewellery shop first. It's the familiar choice. But almost universally, a dedicated gold buyer will pay more than a jeweller for the same piece. The difference is not arbitrary — it comes from fundamentally different business models.
Here's an honest breakdown of why, with numbers you can verify.
How a Jeweller Buys Gold
When you bring old gold to a jewellery shop, they typically:
- Buy it to recycle as raw material for new jewellery
- Need to account for melting loss (~2–4% of weight)
- Need to account for refining costs to achieve hallmarkable purity
- Need to maintain a profit margin on the buy
- May price it against their own in-house rate, not the MCX
The result: most jewellers in Dehradun buy at 82–93% of the MCX spot rate, depending on the shop, the purity, and how busy they are.
How a Dedicated Gold Buyer Works
IGoldcash and similar dedicated gold buyers operate differently:
- We buy gold to sell directly to licensed refineries at MCX-linked rates
- We have no jewellery manufacturing overhead — no craftsmen, no design costs
- Our business model depends on volume and reputation, not margin per piece
- Pricing is tied directly to the MCX benchmark, transparently
Because our business model has a fundamentally lower cost structure per gram, we can offer a higher rate to customers.
A Real-World Rate Comparison
Say today's MCX 22K gold rate is ₹7,000 per gram.
Typical Jeweller
IGoldcash
Difference on 20g: ₹14,000. These are illustrative numbers — call for today's exact rate.
Side-by-Side Comparison
| Factor | Jewellery Shop | Dedicated Buyer (IGoldcash) |
|---|---|---|
| Rate basis | In-house or trade rate | Live MCX benchmark |
| Typical rate offered | 82–93% of MCX | ~95–98% of MCX |
| Purity testing | May not show results | Openly, with written results |
| Written quote | Often verbal only | Always written, before decision |
| Payment method | Often cash only | Bank transfer (NEFT/IMPS/RTGS) |
| Melting fee / deductions | Often applied (1–5%) | Zero — no hidden deductions |
| Regulatory compliance | Varies | Full PMLA + KYC compliance |
| Exchange for new jewellery | Yes (useful if you want new pieces) | Not applicable |
When a Jeweller Exchange Makes Sense
There is one scenario where going to a jeweller is the right choice: if you want to exchange old gold for new jewellery from that specific jeweller.
When you do a jeweller exchange:
- The old gold is valued — typically at a lower rate
- Making charges on the new jewellery are factored in
- The net transaction can still be convenient if you specifically want new pieces from that jeweller's collection
But if you want cash rather than new jewellery — or if you want to buy new jewellery from a different jeweller — selling to a dedicated buyer first gives you more money to spend on your terms.
The Key Difference: Transparency
Beyond the rate difference, the transparency gap is significant. When you bring gold to a jeweller:
- Purity testing may happen behind the counter, out of view
- The "rate" offered may include hidden deductions (melting loss, waste)
- The final amount may differ from the initial verbal quote
- Payment in cash above ₹2 lakh is illegal — but some shops still do it
At IGoldcash, every step happens in front of you: testing, weighing, pricing, and payment. A written quote is produced before you decide. The bank transfer is confirmed before you leave.
Sell Gold at IGoldcash — MCX Rate, Transparent Process
Walk in today. Free valuation, written quote, instant bank payment. No pressure, no hidden charges.
Frequently Asked Questions
Who pays more for gold — a jeweller or a dedicated gold buyer?
A dedicated gold buyer like IGoldcash typically pays more. Jewellers need a margin for melting, refining, and their manufacturing overhead. Dedicated buyers sell to refineries at MCX rates and pass more value to the seller.
What is the MCX rate and how does it differ from the jeweller rate?
MCX (Multi Commodity Exchange) is the national benchmark gold price. Jewellers typically offer 82–93% of MCX. IGoldcash prices at ~95–98% of MCX. The difference on a typical 20g 22K piece can be ₹10,000–₹20,000.
Can I exchange old gold for new jewellery at a jeweller?
Yes, and it makes sense if you specifically want new pieces from that jeweller. If you want cash or flexibility on where you buy new jewellery, selling to a dedicated buyer gives you more money to work with.
Why does IGoldcash pay more than jewellers?
No jewellery-making overhead — no craftsmen, no showroom, no design costs. Our entire business is buying gold and selling to refineries. Lower overheads mean we can pay more per gram to customers.