Gold Melting Charges in India: What They Are & Who Actually Charges Them

Gold Melting Charges in India: What They Are & Who Actually Charges Them

'Melting charges' is a term some gold buyers use to justify deducting an additional amount from the gold sale price - above the standard buyer margin. For many sellers, especially those unfamiliar with the process, this sounds legitimate.

Here is the truth: reputable gold buyers do not charge separate melting fees to sellers. Here is why, and what to do if you encounter this practice.

At a Glance

What Is a Gold Melting Charge?

When jewellery is sold to a gold buyer, it eventually goes to a refinery where it is melted, assayed, and purified. The refinery charges the buyer for this process.

A 'melting charge' is when some buyers attempt to pass this refining cost on to you - the seller - by deducting it from your payout on top of their normal margin.

Typical melting charge claims: ₹50–₹200 per gram, or a flat ₹500–₹2,000 per transaction.

Why Reputable Buyers Do Not Charge Melting Fees

The buyer's 1–3% margin below the IBJA rate already covers:
• Refining and melting costs at their partner refinery
• Branch operating costs
• Testing equipment and consumables
• The buyer's profit margin

A buyer who charges both a margin below IBJA AND a separate melting fee is double-dipping - taking more than their declared margin. At today's rate of ₹13,965/g for 22K, a ₹100/g 'melting charge' on top of a 2% margin effectively makes their total deduction 2.7% - which should be disclosed upfront, not hidden as a separate fee.

When Melting Charges Are Legitimate

• At refineries when you take gold directly for refining (bypassing a buyer) - refineries charge a refining fee of ₹30–₹100/g
• When you send gold to be smelted and assayed and want the proceeds directly - refineries are different from gold buyers
• For very unusual alloys (foreign gold, dental gold, industrial alloys) where assay is complex - a nominal extra charge may be disclosed and agreed upfront
• Always ensure any such charge is disclosed before, not deducted after, the transaction is agreed

How to Respond If You Are Charged a Melting Fee

• Ask: 'Why is there a separate melting charge on top of your rate?' - a transparent buyer can explain
• Ask for it in writing on the receipt - if they refuse, that is a red flag
• Compare: visit another buyer and see if they charge the same
• Do the maths: include the melting charge in your effective per-gram cost and compare to the IBJA rate
• You can walk away from a transaction before signing the receipt if the terms are not what you agreed

Why Choose Attica Gold Company

Attica Gold Company is ISO 9001:2015 certified with 200+ branches across Karnataka, Tamil Nadu, Andhra Pradesh, Telangana and Pondicherry. Your wait is over.

Frequently Asked Questions

Do gold buyers charge melting fees in India?

Reputable buyers (like Attica Gold) do not charge separate melting fees - refining costs are absorbed within their normal margin.

What is a fair gold melting charge?

For a standard seller: zero. Refining cost is covered by the buyer's margin. A separate melting fee on top of a margin deduction is not standard practice at certified gold buyers.

Can I refuse to pay a melting charge?

Yes - you can decline the transaction before signing if a melting charge is added without prior disclosure.

Are melting charges deducted from the weight or the rate?

Some buyers deduct melting loss from the weight (e.g. '3% melting loss from gross weight') - this is a different form of the same practice. Ask for a clear breakdown.

Does Attica Gold charge melting fees?

No - Attica Gold Company does not charge separate melting fees. Our margin covers all operational costs.

Is a stone removal charge the same as a melting charge?

No. Stone removal is a legitimate deduction of the stone's weight from the gold weight (the stone itself is returned or set aside). Melting charges are an additional fee on top of this.

What is the refinery charge if I sell directly to a refinery?

Refineries typically charge ₹30–₹100/g for assaying and refining. This is different from the melting charges some local buyers attempt to impose on retail sellers.