What a buyer actually does with your gold afterwards

After you sell your gold, it does not stay as your jewellery. The shop tests it, melts it down, and eventually sends it to be refined into standard purity gold. That melting and refining step costs money and loses a small amount of metal along the way, and this loss is one of the reasons the rate a buyer quotes you is not the same as the rate printed in the news. Knowing this will not change what you are paid, but it explains why the number at the counter looks the way it does.

We run a gold buying counter in Noida Extension, Greater Noida West, and we pick up gold from sellers anywhere across Delhi NCR. Whether you walk in with purana sona or call us to your home, the gold goes through the same steps after it leaves your hands.

What happens to gold after a shop buys it?

The process is not mysterious, but most sellers never see the parts that happen after the counter. In order, it usually looks like this:

• Testing — your piece is checked on a karatmeter while you watch, to confirm whether it is 22 karat, 18 karat, or another purity, and to read the 916 or other hallmark stamp if there is one.
• Weighing — the piece is weighed on a calibrated scale, again in front of you, so the weight used for the price is one you have seen.
• Melting — once bought, the gold is melted down. Melting removes it from its shape as jewellery and turns it into a form that can be assayed and refined.
• Refining — melted gold is rarely pure. In 22 karat jewellery, the remaining metal is usually copper or silver, added to make the alloy strong enough for jewellery work. Refining separates the gold from these other metals.
• Sale onward — refined gold moves on, usually to bullion dealers or back into jewellery manufacturing, as fresh raw material.

None of these steps happen instantly, and none of them are free.

Why does melting and refining cause a loss?

Two things eat into the metal between your jewellery and refined gold.

The first is fire loss. When gold is melted, a small amount is lost as oxidation and as residue that sticks to the crucible or the tools used. This is a known, physical loss in any melting process, not something a shop invents. The second is the cost of refining itself. Separating gold from copper, silver, or other alloy metals takes equipment, chemicals, and a refiner's fee. Someone pays for that, and it is built into what a buyer can afford to offer a seller.

Neither of these costs is unique to any one shop. Every buyer who melts and refines gold deals with the same fire loss and the same refining cost. What differs between shops is how honestly that cost is reflected in the rate they quote you, and how clearly they explain it if you ask.

Does that loss sit inside the rate I am quoted?

Yes. The rate you see on the news or on a rate page is the rate for refined, pure gold, traded in bulk. It is not a rate anyone pays for a single piece of used jewellery brought in by one seller. Between that published rate and what a shop can offer you sits a gap, and melting loss and refining cost are part of what fills that gap, alongside testing, handling, and the buyer's own margin.

This is also why the purity, weight and rate are treated as inputs, not as a fixed sum. The actual figure for your piece is worked out at the counter once your gold has been tested, because purity and weight vary piece to piece and cannot be guessed in advance. If you want the fuller picture of how that gap is built, our post on why the gold rate in the news is not what you get paid walks through it in more detail.

Can I ask to see any of this before I sell?

You can, and you should ask if something is unclear. The testing and weighing happen in front of you, so you see the karatmeter reading and the scale reading yourself before any number is discussed. Melting and refining happen afterward, off the counter, which is true of any buyer you sell to, not just us. What you can reasonably expect from a buyer is a clear explanation of how the rate was reached, not a demonstration of every later step.

If you are deciding between buyers, it helps to ask direct questions about testing, purity, and how the rate is set, rather than focusing on who sounds the most convincing. Our post on five questions to ask any buyer before you hand over your gold lists what is worth asking. If you would rather talk it through first, call or WhatsApp 9217742656 and ask about the process before you decide to bring your gold in.

Questions people ask

Why don't I get the full market rate for my gold? The market rate is for refined, pure gold traded in bulk, not for a single used piece. Melting loss, refining cost, and testing all sit between that rate and the price a buyer can offer you.

Does melting my gold reduce its weight? A small amount of metal is lost during melting through oxidation and residue, which is a normal part of the process and one reason the buying rate differs from the printed rate, not a sign anything was done wrong with your piece.

Is 22 karat gold pure gold? No. 22 karat, often marked 916, is about 22 parts gold to 2 parts other metal, usually copper or silver added for strength, and refining separates that gold back out after the jewellery is melted.

How the karatmeter reading is taken · Why the published rate is not your payout · Sell gold in Noida Extension · Gold bechna hai? Start here