“Whatcha gonna do with all that junk? All that junk inside your trunk?”
The Black Eyed Peas sung their way to fame with these blockbuster lyrics in the noughties.
This may as well have been what Pallavi, who recently got married, sang hysterically when her mother used up all the cash gifts received during her wedding to buy gold for her.
She was perplexed – what could she possibly do with all the gold?
I’m sure a lot of us have wondered the same about the gold sitting in our lockers, bought by family who were adamant that gold is a good investment.
The gold monetization scheme is definitely better than paying for the locker that holds the gold.
The world of Hallmarked Gold
But before you rush to sell it, your gold passed through the generations may not be accepted by the banks while the small gold coin bought during Akshaya Tritiya definitely will be. The only difference between the two is that the coin is Hallmarked and tested for purity, it doesn’t matter how well known the family jeweller is.
As long as you choose to use the non-certified gold as an accessory, you’re hunky dory. The problem starts once you plan to sell it, take a loan with it or use it under any gold monetization scheme.
All leading gold jewellers have been extensively advertising hallmarked gold. This means, all gold jewellery today comes with a BIS certified marking, disclosing its purity and caratage. You don’t need to get the gold “tested” separately anymore and you can no longer be conned by “guaranteed 99.9% pure” gold. Sadly, however, your favourite heirloom bangles are not certified and marked.
It is normal for jewellers to buy old gold at a price 15 to 20% lower than the value. So you can only imagine your bargaining position without the hallmark. When the need is dire, you’re left with no choice but to accept their terms and part with your much loved jewellery without getting your due.
What’s the best way out?
The best way to avoid being in such a situation is to get your old gold recycled. The old gold is sent to a refiner after checking the weight, purity and quality and processed into hallmarked gold bars.
It might hurt to destroy the delicate work on the necklace, but it is the practical thing to do.
Why say ‘Yes’ to gold recycling?
Recycling your old gold and selling it can lead to lowering of gold prices. How?
According to a study by the World Gold Council, Indian households hold approximately 22,000 tonnes of gold. And we are a reluctant bunch when it comes to parting with it. Since the demand for gold is still high, it has to be imported.
If you monetize your old gold to purchase new gold, you will be ensuring that it gets exchanged at standard gold prices. Moreover, by recycling old gold, we will no longer be importing huge quantities of gold, thereby leading to lowering of import duty.
Where can I get my gold recycled?
In 2009 and 2012, when the gold prices peaked, the idea of recycling saw some daylight. Today, there are over 350 BIS-authorised hallmarking centres across the country which offer gold recycling as well. So, it won’t be tough for you to find one!
Recently, the leading NBFC- Muthoot Fincorp has announced their plan to open gold recycling centres across the country. This is the first time an NBFC is foraying into this. This would also mean easier gold mortgages.
The major advantage here is that the Muthoot recycling centres value the gold by international standards and take a nominal fee that is only 1.5 to 2% of the actual value of the gold. While traditional jewellery shops may end up taking a cut that is 15-20% the value of the gold. You know which one of these is the better option here.
Not only do you get your value for money, you play your part in dropping gold prices.
Pallavi went the recycling way and has already bought a fancy car, a new phone, and an entirely new wardrobe.
Dust that necklace you can never see yourself wearing and put it to some good use. Turn your idle gold into ideal gold.