UAE residents planning to sell old gold jewellery and buy new pieces ahead of the Indian festivals should avoid five common mistakes that could cost them hundreds or even thousands of dirhams, an industry expert has warned.
Dhanteras falls on Friday, November 6, and Diwali on Sunday, November 8. Gold purchases are traditionally considered auspicious on these occasions, and jewellers across the UAE typically see heavy footfall from the Indian community.
According to Dubai Jewellery Group data, 24K, 22K, 21K and 18K gold prices closed the week at Dh502.0, Dh464.75, Dh445.75 and Dh328.0per gram, respectively.
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Rishi Vaya, co-founder of sellyourgold.ae, said many sellers enter transactions without adequate preparation and risk receiving less than their gold is worth.
Five mistakes to avoid
1. Not knowing the karat and weight
Gold is valued primarily on the basis of purity and weight. Sellers who do not know whether their jewellery is 18K, 21K, 22K or 24K, or how much it weighs, are at a disadvantage, Vaya said.
He advised checking the hallmark, estimating the weight and understanding the current market rate before approaching a buyer.
2. Misunderstanding how gem-set jewellery is valued
Sellers are generally paid for the gold content, not the design or gemstones. Stones are assessed separately, while making charges are not recovered when jewellery is sold.
“Sellers who expect their ornate or gem-set pieces to command a premium are often left disappointed,” Vaya said.
3. Selling under pressure
Gold is a liquid asset, so sellers do not necessarily need to rush into a transaction. Taking even 24 hours to compare offers and choose a reputable buyer can make a meaningful difference to the final amount received, Vaya said.
4. Accepting the first offer
Even a small difference in deductions can translate into hundreds or thousands of dirhams when selling a substantial quantity of gold. Obtaining two or three quotes allows sellers to compare valuations and potentially secure a better price, he said.
5. Confusing the retail rate with the buying rate
The rate displayed in jewellery shops is the retail selling price, not the rate buyers offer for old gold. Deductions therefore apply when selling jewellery.
Understanding these deductions and choosing a buyer who clearly explains the calculation can help sellers make informed decisions, Vaya said.
Rishi Vaya
Is the gold at home worth more than you think?
“Almost certainly yes,” Vaya said.
Gold is widely purchased in the UAE for weddings, festivals and family occasions. Many households have accumulated jewellery over the years, often when prices were significantly lower, but have not reassessed its value recently.
Before selling, residents should check the current gold rate and recent price movements, as even a small change can affect the proceeds from a sizeable quantity. They should also establish their jewellery’s purity and approximate weight.
Vaya said his company uses professional X-ray fluorescence (XRF) machines to test gold purity, with the process conducted in front of customers.
“You see every reading in real time with nothing happening behind closed doors,” he said.
The valuation shows the seller the gold’s value at the prevailing international spot price before applying a deduction, he explained.
“No hidden charges, no additional fees, just one transparent number,” he said, adding that sellers can decline the offer without cost if they are unhappy with it.
Identifying fair pricing
Vaya advised sellers to check the live Dubai gold rate for their jewellery’s karat before approaching a buyer. A transparent buyer should explain the gold’s valuation and clearly disclose any deduction.
“If a buyer cannot explain their calculation in plain terms or is layering on multiple charges and fees, walk away,” he said.
For residents planning to buy gold, Vaya described the metal as “a long-term bet, not a trading instrument”, arguing that it is better suited to long-term value preservation than short-term trading.
Gold bars generally have lower premiums than jewellery because they do not carry the same making charges. They may therefore be more economical for those buying gold purely as an investment.
Jewellery, meanwhile, carries additional craftsmanship costs but can also be worn. Over a long holding period, rising gold prices may offset some of the higher initial cost, although returns are not guaranteed.
“If the goal is purely financial return, gold bars are the smarter choice. If the goal is a combination of enjoyment and long-term value preservation, jewellery can serve both purposes well,” he said.