Selling or trading in old gold in Singapore

Many families have a drawer of gold they no longer wear: a broken chain, an earring missing its pair, a bangle that no longer fits. That gold still has value. In Singapore you can usually turn it into cash or put it towards something new. Here is how it works and how to make sure you get a fair price.

Two options: cash or trade-in

Cash buy-in

The shop buys your gold and pays you for it. The price is based on the weight and purity of the gold and the shop's buy-in rate per gram on the day.

Trade-in towards a new piece

You exchange your old gold towards something new from the same shop. Its value is calculated at the shop's trade-in rate, which is often more favourable than the cash buy-in rate, and credited against the new piece.

Which is better depends on what you want. If you need the money, a cash buy-in is simpler. If you were planning to buy something anyway, or you would like an old piece remade into something you will wear, a trade-in usually gives you more for your gold.

How your gold is checked

A reputable shop will check your gold openly, in front of you. The two things that matter are weight and purity.

Weight

Your items are weighed on a precise scale, in grams. Anything that is not gold is excluded where possible: gemstones, glass, beads and non-gold parts such as some clasps. Pieces set with stones may need an estimate, which the shop should explain.

Purity

Gold purity is shown by the stamp on the piece (for example, 916 for 22K), but a stamp is a claim, not a guarantee. Shops therefore test the gold, commonly with an electronic tester or an acid test on a touchstone. Some use X-ray fluorescence (XRF) machines, which measure the metal's composition without damaging it.

If the test result differs from the stamp, the price is based on the tested purity. You are entitled to ask how the test was done and what it showed. (For a refresher on the numbers, see 916 or 999? Gold purity explained.)

What affects the price you are offered

• The day's rate. Buy-in and trade-in rates follow the gold market, which moves daily. We explain why in how gold prices are set in Singapore.
• Purity. Higher purity means more gold per gram.
• Net gold weight. Stones and non-gold parts don't count.
• Condition and type. Old gold is normally valued for its metal content. Workmanship paid for when the piece was new is usually not recovered.
• Buy-in or trade-in. As above, the rates differ.

What to bring

• The gold itself, including broken pieces and single earrings. Everything counts by weight.
• Receipts, if you have them. They help confirm purity and your purchase history, though they are not always required.
• Identification. Singapore's precious metals dealers are regulated under the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act. At the time of writing, dealers must carry out customer due diligence, including identifying and verifying the customer, for cash transactions above S$20,000. That applies whether the amount is paid in one go or builds up across the same day. They may also need to verify identity in other prescribed situations. Bringing your NRIC or passport avoids delays.

Tips for a fair price

1. Check the rates before you go. Many shops publish their buy-in and trade-in rates daily. Compare 916 with 916, on the same day.
2. Watch the weighing and testing. A trustworthy shop will be happy for you to see the scale and the result.
3. Ask for the calculation. Net weight × purity-based rate should add up to the offer. Ask about any deductions.
4. Separate stones first, or ask how they are treated. Stones may be returned to you or valued separately, depending on the shop.
5. Don't feel rushed. You can always take your gold home and think it over.
6. Consider a redesign. If a piece has sentimental value, it may be possible to remake it rather than sell it.

Visit us

Minora Jewels is a family-owned Indian gold jeweller at 142 Dunlop Street, Little India, serving Singapore since 1995. We offer buyback, trade-in and custom redesigns, and we publish our 916 buy-in and trade-in rates every day on today's gold rate. Plan your visit: we are open daily, 10.30am to 9.30pm.

This article is general information, not financial or legal advice.