Why different shops pay different prices for gold (and what to check)

You bring in a gold ring and get three offers that are all over the map. Which one is right? The answer is not just the market price.

Myth vs Fact — Shops all use the same gold price

Myth: Every shop pays the same live market price for gold. Fact: Shops start from the same spot price but adjust it. The spot price is a global number for pure gold. That number matters most for bullion. For jewelry, shops also factor in purity, weight loss in melting, and local costs.

Myth vs Fact — Purity is obvious from the photo

Myth: If a piece looks stamped 14K or 18K, that tells the whole story. Fact: Stamps help but can be worn, wrong, or forged. Shops test purity with electronic testers, acid kits, or by weighing after a small sample is taken. That testing step changes the offer more than the stamp does.

Myth vs Fact — All shops melt and resell the same way

Myth: Every buyer melts jewelry and sells raw gold the same way. Fact: Some buyers refine and sell to metal traders. Others sell to local refineries or dealers with different fees and minimums. A shop’s network and its refining cut (a fee or loss in the process) directly affects the price it can pay you.

Myth vs Fact — You can just compare one number and choose the best

Myth: Pick the highest offer and you win. Fact: The highest offer may be for parts of the piece, not for the whole. One shop might pay more because they plan to resell the intact item to a collector, not melt it. That matters if your item is a designer piece, has gemstones, or is repairable.

Myth vs Fact — Negotiation is pointless

Myth: The first offer is fixed and you have no room to move. Fact: You can negotiate politely. Bring a simple test question: ask how they tested purity, what refining cut they apply, and whether they include stones in the weight. If a shop expects to resell the item whole, it may raise the offer. If you show receipts or appraisals, that can help.

Micro-moment: You meet a buyer behind the counter. They weigh the ring and test it with a small probe. You ask what the test shows and why the offer is lower than another shop. The buyer explains they plan to melt it and pay only for metal, not for the stones.

Fast check before you pay

• Ask how they tested purity and whether the result can be shown to you.

• Ask what percentage or fixed fee they subtract for refining or handling.

• Ask whether gemstones are counted in the weight or excluded.

• Check if the shop will resell the piece whole or intends to melt it.

• Compare offers on the same day; ask about the base spot price they used.

• Bring any receipts, appraisals, or original paperwork to prove purity or purchase price.

• Trust your instinct: if a shop avoids showing a test or gives a confusing answer, walk away.

How to read the offer like a pro

Look for three things in the answer. First, purity: is it tested or just stamped? Second, deductions: is there a refining or handling cut, and how big is it? Third, resale path: will they sell it whole or melt it? Put those three answers together. That gives you a real comparison, not just a headline number.

Bottom line—what to do today

If you need cash fast, get two or three offers and compare the same things: tested purity, refining cut, and resale plan. If the piece is likely collectible or has stones, try a buyer who sells intact items first. If you have time, ask friends or check short-term local prices. One clear offer beats three vague ones.

Ask for the grams and the karat test result. Once those are clear, the rest is just negotiation.

Today’s takeaway: Ask how they tested your gold, how much they’ll take off for refining, and whether they’ll sell it whole before you accept any cash.