Your gold's value when you sell = weight × today's price per gram for its karat, minus a small margin the shop takes. The making charge and VAT you paid when you bought it do not come back. Today 21K is 408.86 SAR per gram on the market, and shops buy used gold at about 403.86 SAR per gram (an estimate). So 10 g of 21K is worth roughly 4,038.60 SAR.
How do I know what my gold is worth before I sell it?
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Steps before you go to the shop
- Find the karat from the hallmark: look for the stamp inside the piece: 875 means 21K, 750 18K, 916 22K and 999 24K. The hallmark is mandatory: Article 4 of the Precious Metals and Gemstones Law bans selling, displaying or holding precious metal bars and items for sale unless they carry the Kingdom's hallmark. If there is no clear hallmark, the old invoice helps. Details are in How can I check that gold is real and find its true karat?
- Separate your pieces by karat: each karat has its own price, so don't add 18K weight to 21K weight.
- Find the weight: from the invoice, or ask the shop to weigh the piece in front of you on a scale whose display you can see.
- Take off the stones: a shop buys only the gold. A piece with large stones has a lower gold weight than its full weight.
- Check today's price: on the 21K price page (Arabic) or the page for your karat, on the same day you sell. The price changes during the day.
- Work out the value: gold weight × the price per gram for its karat. This is the most you can expect, and a normal offer is a little below it.
- Ask more than one shop: get offers from two or three shops on the same piece before you decide.
An example in numbers
You have a 10 g 21K bracelet and an 8 g 18K chain (no stones):
| Piece | Market value of the gold | Expected offer, roughly |
|---|---|---|
| 21K bracelet (10 g) | 4,088.60 SAR | 4,038.60 SAR |
| 18K chain (8 g) | 2,803.61 SAR | 2,763.61 SAR |
The expected offer assumes an estimated margin of about SAR 5 per gram below the market price, and this varies from shop to shop. If an offer is much lower than this, ask the shop how it was worked out: what weight, and what price per gram.
Why is the offer lower than what you paid?
When you bought the piece you paid for three things: the gold value + the making charge and the shop's margin + 15% VAT on the whole amount. When you sell, the shop buys the gold as metal only, so the making charge and VAT are gone. That is why the gap between the buying and selling price is large, especially on light pieces with high making charges. See the gap in numbers on the gold buy and sell prices page (Arabic), and the making charge in detail in How do I calculate the gold making charge?
What can lower the offer?
- Unclear karat: if the hallmark has worn away or there is no invoice, the shop may test the piece or offer less to be safe.
- Stones: these are taken off the weight and are usually given no value.
- Broken pieces or solder repairs: these may contain metal other than gold.
- An old price: some shops use the morning price. Ask which price per gram they used.
Tips at the shop counter
- Keep the scale in view and ask for a paper showing the weight, karat, price per gram and amount. According to Okaz, the Ministry of Commerce requires gold shops to write the price per gram and the total price of each piece, so you are entitled to ask for the same breakdown when you sell.
- Keep your old invoices, because they prove the karat and weight.
- If you are selling to buy a new piece from the same shop, work out the two deals separately: what the shop gives you for the old piece, and the making charge on the new one. How do I know if a gold shop's price is fair? explains the sum for the new piece.
- If there is a dispute over the invoice or a displayed price, you can report it to the Ministry of Commerce on the unified number 1900 or through the بلاغ تجاري (Balagh Tijari) app.
Work it out quickly
The selling calculator gives you the market value of any weight and karat, and the offer to expect from a shop, at the current price. The Dhahabi iPhone app has a free value calculator, and a free portfolio where you can keep your pieces with their photos.
Sources
- Bureau of Experts at the Council of Ministers: Precious Metals and Gemstones Law, Article 4, hallmarking (Arabic).
- Ministry of Commerce, via Okaz: Ministry of Commerce explains: free competition (Arabic, 18 November 2020): writing the price per gram and the total price.
- Ministry of Commerce (Arabic): reports on 1900.
- The selling margin (SAR 5 per gram) is a Dhahabi estimate, and the method is in how we calculate prices.
Frequently asked questions
How much does a shop pay for a gram of used 21K gold today?
About 403.86 SAR per gram as an estimate, a little below the market price of 408.86 SAR. The actual offer varies from shop to shop.
Do I get the making charge back when I sell gold?
No. A shop buys gold by weight and karat only. The making charge and VAT you paid when you bought it are not refunded.
Do I need the invoice to sell gold?
It helps because it proves the karat and weight, and without it the shop may test the piece. Ask the shop what it requires before you go.
Is it better to sell to a gold shop or trade in for a new piece?
Work out the two deals separately: the selling price on the old piece and the making charge on the new one. Trading in saves you a trip, but what matters is the final figure.
How do I know if a shop's offer is fair?
Work out the gold weight × the price per gram for its karat today. A fair offer is close to this figure and a small margin below it. If it is much lower, ask how it was worked out and try another shop.