How Silver Jewellery Selling Value Is Calculated
Silver jewellery selling value is the amount you can expect to receive when selling old silver jewellery back to a jeweller. It isn't the same figure as the making charges you paid when you originally bought the piece — it typically starts from the silver value of the metal itself, based on today's rate and your jewellery's purity and weight, with a deduction that jewellers may apply before arriving at the final estimate. This guide walks through how that estimated selling value is typically calculated, using the same logic as the SonaChandiTools Silver Sell Calculator.
Step 1: Silver Rate Used in the Calculation
The starting point for any selling value is the silver rate for the day — the price per gram of silver that a buyback offer is based on. This is the same centralized reference rate shown on the Silver Rate Today page, applied to the specific purity of your jewellery.
Step 2: Purity — 999 and 925 Silver
The rate applied to your jewellery depends on its purity. This site tracks two common silver purities — 999 (fine silver) and 925 (sterling silver) — each with a different rate per gram, since each contains a different proportion of pure silver. A jeweller will usually assess or ask for your jewellery's purity (often stated on your original purchase bill, or verified with a hallmark) before applying a rate. See the 999 vs 925 Silver guide and What Is 925 Silver? for more on how the two compare.
Step 3: Weight Used in the Calculation
Weight is measured on the jeweller's scale at the time of sale, not taken from your old purchase receipt. Stones, other attached materials, or wear over time can all make the actual silver weight different from what was originally billed, so the weight used in the calculation is the one measured on the day you sell.
Silver Jewellery Selling Value Formula
The same sequence the Silver Sell Calculator follows, in plain terms.
- 1.The applicable rate depends on your jewellery's purity (999 or 925)
- 2.Silver value = Applicable silver rate × Weight
- 3.Deduction amount = Silver value × Deduction % (where applied by the jeweller)
- 4.Estimated selling value = Silver value − Deduction amount
Step 4: How Deductions Can Affect the Estimated Selling Value
Jewellers may apply a deduction to the silver value before arriving at what they'll pay, commonly described as covering things like purity verification, re-melting loss, or the jeweller's own buyback margin. There is no fixed or industry-standard deduction percentage: some jewellers deduct nothing, others apply a percentage they set independently, and it can vary by jeweller, jewellery condition and buyback policy. Always confirm the applicable deduction, if any, before agreeing to a sale.
Worked Example
The figures below use the site's current centralized reference rate for 925 silver, along with a hypothetical weight and deduction percentage — purely to illustrate how the calculation works, not as typical or recommended figures.
For 100 grams of 925 silver at ₹85.19/gram, the silver value is ₹8,519. A hypothetical 2% deduction reduces this by ₹170.38, giving an estimated selling value of ₹8,348.62.
This is an illustrative calculation only, using the site's current centralized reference rate for 925 silver — not a live market, API, or official market rate. Your jeweller's actual deduction percentage may differ — use the Silver Sell Calculator with your own numbers for a closer estimate.
Making Charges Paid Earlier Are Not Automatically Recovered
The making charges and wastage you paid when originally buying the jewellery were a one-time cost for the labour and craftsmanship of that piece — they are separate concepts from a selling deduction, and are not automatically refunded or recovered when you sell. Selling value is generally based on the silver value alone, minus any deduction the jeweller applies at the time of sale, regardless of what was charged when the piece was made.
Why Actual Jeweller Buyback Offers Can Differ
The estimate above shows the mechanics of the calculation, but the actual offer you receive from a jeweller can differ for several reasons: how they verify purity (testing method, or willingness to trust a hallmark or bill), how they measure weight (and whether they deduct for stones or other attachments), their own buyback policy and deduction percentage, and the condition of the jewellery itself. Two jewellers can reasonably arrive at different offers for the same piece.
What to Ask the Jeweller Before Accepting an Offer
Before accepting a buyback offer, it helps to ask: what purity are they valuing the jewellery at, and how did they determine it; what weight are they using, and does it exclude stones or other materials; what deduction percentage, if any, are they applying, and what does it cover; and can they show the calculation as an itemised breakdown rather than a single final number. An itemised breakdown makes it easier to compare offers across jewellers.
Buying, Selling and Exchanging: How They Differ
The same silver rate and purity data feed all three calculations, but the transaction and formula are different.
| Transaction | What It Means | Where to Calculate It |
|---|---|---|
| Buying new jewellery | You pay for silver value plus wastage, making charges and GST | Silver Jewellery Calculator |
| Selling old jewellery | You receive silver value minus any deduction the jeweller applies | Silver Sell Calculator |
| Exchanging old jewellery | Your old jewellery's selling value is credited against a new purchase | Silver Exchange Calculator |
This Is an Estimate, Not a Buyback Offer
The worked example on this page uses a hypothetical deduction percentage purely to illustrate the calculation method — it is not a typical, average or recommended figure, and the silver rate used is this site's centralized reference rate, not a live market, API, or official market rate. Making charges paid at the time of original purchase are not automatically recovered when selling. Actual buyback value depends on the jeweller's own purity verification, weight measurement, deduction policy and the jewellery's condition, and can vary between jewellers. Always ask for an itemised calculation before accepting an offer.
Related Calculators & Guides
Use today's reference rate and your own deduction figures in the calculator, or read more on each step below.
Silver Sell Calculator
Enter your jewellery's purity, weight and expected deduction to estimate a selling value.
Silver Rate Today
See today's reference rate for 999 and 925 silver.
999 vs 925 Silver: What’s the Difference?
How 999 and 925 silver compare in purity and price.
What Is 925 Silver? Meaning, Purity & Fineness
What the 925 mark on silver jewellery means.
How Silver Jewellery Price Is Calculated
A step-by-step look at how a silver jewellery purchase price is calculated.
Silver Making Charges Explained
A closer look at percentage-based and flat/per-gram silver making charges.
Silver Wastage Charges Explained: How Wastage Percentage Works
How silver wastage charges work and how they differ from making charges.
Silver Exchange Calculator
See how an old piece's selling value is credited against a new purchase.
How Silver Jewellery Exchange Value Is Calculated
A step-by-step look at how exchange value and the final amount payable or credit are calculated.
Frequently Asked Questions
- How is silver jewellery selling value calculated?
- It generally starts with the silver value (today's applicable rate × your jewellery's weight, for its purity), and then any deduction the jeweller applies is subtracted to arrive at the estimated selling value.
- Is the selling value the same as what I paid to buy the jewellery?
- No. The original purchase price included making charges, wastage and GST, which are separate from a sale — selling value is generally based on the silver value alone, minus any deduction the jeweller applies, and making charges paid earlier are not automatically recovered.
- Do all jewellers charge the same deduction when buying back silver?
- No. There is no fixed or industry-standard deduction percentage — some jewellers deduct nothing, and where a deduction is applied, each jeweller sets its own percentage and policy.
- Does the purity marked on my old bill decide the selling rate?
- Not necessarily. Jewellers typically verify purity themselves at the time of sale — through testing or an existing hallmark — and it's usually this verified purity, not just the original bill, that decides the applicable rate.
- Why do two jewellers offer different amounts for the same silver jewellery?
- Differences in purity verification, weight measurement, deduction percentage and buyback policy can all lead to different offers for the same piece, even on the same day.
- Are wastage and making charges relevant when selling silver jewellery?
- Not directly. Wastage and making charges are costs added when buying new jewellery, to cover manufacturing loss and craftsmanship. When selling, the calculation is generally based on the silver value alone minus any deduction the jeweller applies — wastage and making charges paid earlier are separate concepts and aren't factored back in.
- How is selling different from exchanging old silver jewellery?
- Selling gives you a payout based on the jewellery's selling value. Exchanging uses that same selling value as a credit against the cost of a new piece, rather than paying it out — see the Silver Exchange Calculator to estimate the net amount payable or owed.