One of the most common questions people ask before selling jewellery is “Do gold buyers charge melting or wastage fees?”
The answer is it depends on the type of buyer, but most trusted and professional gold buyers do NOT charge melting or wastage fees when buying old gold.
Unfortunately, many sellers lose money because they don’t understand these charges or don’t ask the right questions. This guide explains what melting and wastage fees are, when they apply, when they should not apply, and how to avoid unnecessary deductions while selling old gold.
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Do gold buyers charge melting or wastage fees?
Melting charges refer to the cost a buyer claims to deduct for melting gold jewellery into raw gold. Some buyers say they need to melt gold to:
Remove impurities
Separate alloy metals
Recast gold
Because of this, they deduct a percentage or fixed amount from the gold value.
Important Truth:
For old gold selling, melting charges are not mandatory and not always justified.
What Is Wastage in Gold Selling?
Wastage refers to gold loss during jewellery making, not during selling.
When you buy new jewellery, wastage charges apply because gold is lost during:
Cutting
Shaping
Polishing
However, when you sell old gold, wastage should not be charged, because:
The gold already exists
No manufacturing is happening
Buyers pay only for gold content
Charging wastage during selling is usually unfair.
Do Gold Buyers Really Need to Melt Gold?
In most cases, no immediate melting is required.
Modern gold buyers use:
XRF machines
Karat testers
These tools can accurately test:
Gold purity
Alloy percentage
without melting the jewellery. This means melting charges are often unnecessary at the selling stage.
Which Gold Buyers Usually Do NOT Charge Melting or Wastage Fees?
Authorized Gold Buyers
Authorized and professional gold buyers usually:
Do not charge melting fees
Do not deduct wastage
Pay based on purity and net weight
They buy gold for resale or refining in bulk, so individual melting cost is not passed to the seller.
Cash-for-Gold Specialists
Buyers who specialize in old gold and scrap gold generally:
Accept broken and damaged jewellery
Focus only on gold content
Avoid unnecessary deductions
This makes them a preferred option for sellers.
Which Buyers May Charge Melting or Wastage Fees?
Some Local Jewellers
Certain jewellers may deduct:
Melting charges
Wastage
Refining costs
especially if:
They plan to reuse the gold for new jewellery
The gold has mixed purity
The jewellery contains heavy alloy or stones
These charges vary and are not standardized.
Unorganized or Temporary Buyers
Buyers without proper setup may:
Claim high melting loss
Deduct vague wastage percentages
Avoid explaining calculations
This is a major red flag.
Is It Legal to Charge Melting or Wastage Fees?
There is no legal rule forcing sellers to pay melting or wastage fees.
These charges are not mandatory
They are buyer-specific practices
Sellers have the right to refuse
You are always free to:
Ask for explanation
Compare other buyers
Walk away if deductions seem unfair
How Trusted Gold Buyers Calculate Value Without These Fees
Professional buyers use a transparent formula:
Gold Value = Purity × Net Weight × Today’s Gold Rate
No melting.
No wastage.
No hidden deductions.
This is the fairest and most accepted method.
What About Stones, Beads, and Non-Gold Parts?
If jewellery contains stones or beads:
They are removed or excluded
Only net gold weight is valued
This is not a melting charge, but a fair adjustment.
Why Some Buyers Still Mention Melting Charges
Buyers may mention melting fees to:
Increase their profit margin
Reduce payout amount
Confuse first-time sellers
Many sellers accept deductions simply because they don’t question them.
How to Avoid Melting and Wastage Charges When Selling Gold
1. Ask the Right Question
Instead of asking “What price will you give?”, ask:
“Do you charge melting or wastage fees?”
“What deductions will be applied?”
Clear questions prevent surprises.
2. Watch the Valuation Process
Trusted buyers:
Test purity in front of you
Show net weight clearly
Explain calculation step by step
Transparency = no hidden fees.
3. Compare Multiple Buyers
Visit at least 2–3 gold buyers.
You’ll quickly notice who:
Deducts unnecessary charges
Offers clean pricing
4. Check the Day’s Gold Rate
If a buyer offers a rate much lower than the market:
It may include hidden melting or wastage deductions
Does Broken or Damaged Gold Attract More Charges?
No.
Broken or damaged gold:
Is valued the same as intact jewellery
Does not require extra melting charges
Is accepted by most professional buyers
Condition does not justify extra deductions.
Does Hallmarked vs Non-Hallmarked Gold Change Charges?
Not really.
Hallmarked gold is easier to test
Non-hallmarked gold may require detailed testing
But neither should attract melting or wastage fees if testing is done properly.
Common Myths About Melting and Wastage Fees
Myth: Melting charges are compulsory
Truth: They are not mandatory
Myth: Broken gold loses value due to melting
Truth: Value depends only on purity
Myth: All buyers charge wastage
Truth: Trusted buyers don’t
Difference Between Refining Cost and Melting Charges
Many buyers confuse sellers by using technical terms. It’s important to understand the difference.
Refining cost is incurred later by buyers when gold is processed in bulk
Melting charges are often wrongly passed on to individual sellers
In reality, refining is part of the buyer’s business cost and should not be deducted from your selling price. Trusted buyers absorb this cost instead of transferring it to customers.
Why Modern Gold Testing Eliminates the Need for Melting
Earlier, gold had to be melted to check purity. Today, that is no longer required.
Modern buyers use:
XRF machines
Digital karat analyzers
These tools:
Test purity instantly
Avoid gold loss
Eliminate the need for melting
This is why melting charges are outdated in most cases.
FAQs
Do gold buyers charge melting or wastage fees?
Most trusted gold buyers do not charge melting or wastage fees when buying old gold.
Why do some buyers deduct melting charges?
Some buyers deduct it to increase margins or due to outdated practices.
Is it okay to refuse melting charges?
Yes, you can refuse and choose another buyer.
Are wastage charges valid during gold selling?
No, wastage applies during jewellery making, not selling.
How can I know if deductions are fair?
Ask for a clear calculation breakdown and compare with other buyers.