Gold prices jump from ₹432 to ₹1.42 lakh in 50 years: Should you sell inherited gold jewellery, exchange it or keep it?
Gold prices have risen sharply over the years, making inherited jewellery worth revisiting. A necklace passed down by a parent or a pair of old bangles may hold both financial and sentimental value. But should you sell the jewellery at current prices, keep it for future use, or exchange it for a new design?
According to Bullion data, gold prices today stand at ₹1,42,500 per 10 grams for 24-karat gold. In 2016, the price was around ₹28,624 per 10 grams, while 20 years ago, in 2006, it was ₹8,400. In 1976, 50 years ago, the gold price was just ₹432 per 10 grams, according to Bankbazaar data.
But the decision to sell inherited gold involves more than the prevailing gold rate and returns. Purity, resale value, and tax implications can all affect the outcome. Here are six things to check before deciding what to do with inherited gold.
Do not value jewellery only by its total weight. Stones, pearls and other non-gold components must be excluded, while purity determines the applicable rate. Check the hallmark and get the jewellery tested if its purity is uncertain.
A necklace inherited from a parent may have significance beyond its resale price. Consider whether the piece is likely to be worn, preserved, or passed on. Antique craftsmanship may also warrant a separate check before selling it as scrap gold.
The market rate is not necessarily the amount a jeweller will pay. Ask for the rate applied, net gold weight, and every deduction. Compare written quotations from multiple buyers before finalising the sale.
Example: If the assessed gold weighs 20 grams and the applicable rate is ₹13,070 per gram for 22-karat, its indicative metal value is ₹2,61,400. If the jeweller deducts ₹5,000, the payout would be ₹2,56,400.
Exchanging old jewellery can reduce the amount payable for a new piece, but making charges and applicable GST add to the bill.
Example: If a jeweller offers you ₹2,56,400 for your old gold and the new jewellery of the same weight (20 grams) in 22-karat gold costs ₹2,96,166, including 10% making charges and 3% GST, you will have to pay an additional ₹39,766. Compare the making charges across jewellers and the total bill rather than just the current gold rate.
Receiving gold through inheritance is not taxable at the time of receipt. However, at the time of selling, it will attract capital gains tax. Gold held for more than 24 months is treated as a long-term capital asset, with gains taxed at 12.5% without indexation. Short-term gains are taxed at applicable slab rates.
For calculating capital gains, the cost of acquisition is generally taken as the original purchase price paid by the owner. If the gold was acquired before 1 April 2001, its fair market value (FMV) as of that date will be considered.
Example: Suppose a person inherits gold jewellery that their parent purchased for ₹50,000 in 2006. If the jewellery is sold today for ₹2 lakh, the capital gain would be ₹1.5 lakh, assuming no deductible transfer expenses or improvement costs. If the gain qualifies as a long-term capital gain, the tax at 12.5% would be ₹18,750, excluding applicable cess and surcharge.
Retain available purchase bills, inheritance documents, valuation reports, and transaction receipts for reporting capital gains in your income tax return (ITR) or claiming any eligible tax exemption.
These documents can help establish the jewellery’s ownership and acquisition history, particularly when calculating capital gains.
If you want to realise gains from the rise in gold prices, selling may be an option, but account for the potential capital gains tax first. If you plan to buy new jewellery this year, selling old pieces could help fund the purchase, but compare the exchange value, making charges, and other costs.
If the jewellery holds emotional significance or you wish to preserve it for long-term family use, keeping it may also be worth considering. Ultimately, the decision depends on your financial needs, the jewellery’s sentimental value, and the costs involved.
Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.
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HomeMoneyPersonal FinanceGold prices jump from ₹432 to ₹1.42 lakh in 50 years: Should you sell inherited gold jewellery, exchange it or keep it?
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