Methodology for Gold Assaying
Sai Gold OGL follows a transparent, branch consistent Gold Assaying Methodology for assessing purity and valuation, ensuring every customer receives a fair and accurate loan offer based on the verified quality and net weight of their pledged ornaments.
How We Value Your Gold: A Clear and Consistent Approach
At Sai Gold OGL, we believe every customer deserves to understand how their gold is assessed and valued before a loan is sanctioned. Our gold assaying methodology is transparent, standardised, and uniformly applied across all branches, ensuring fairness and consistency for every borrower.
The valuation of pledged gold ornaments is carried out based on two key factors: the purity of the gold and the net weight of the ornament, after deducting the weight of any embedded stones or non-gold material.
Step 1: Assessing Gold Purity
The purity of gold ornaments is tested using standard methods approved by Sai Gold OGL to determine their carat value. Only gold ornaments of a minimum purity of 22 carats are accepted as security for a gold loan. In cases where the purity is found to be below 22 carats, the net weight of the ornament is adjusted proportionately to arrive at the equivalent 22-carat weight for loan calculation purposes.
Step 2: Purity-Based Weight Adjustment
Market-published gold rates for 22 carat, 18 carat, and 14 carat gold are used for valuation. For gold articles of other purities, the net weight is adjusted to the nearest higher purity for which a market rate is available. The table below outlines the applicable adjustments:
| Gold Purity / Carat | Applicable Gold Rate | Weight Adjustment |
|---|---|---|
| 91.6% (22 ct) and above | 22 ct market rate | No adjustment |
| 87% (21 ct) | Adjusted to 22 ct | 4.5% reduction |
| 83% (20 ct) | Adjusted to 22 ct | 9.1% reduction |
| 79% (19 ct) | Adjusted to 22 ct | 13.6% reduction |
| 75% (18 ct) | 18 ct market rate | No adjustment |
| 70% (17 ct) | Adjusted to 18 ct | 5.6% reduction |
| 66% (16 ct) | Adjusted to 18 ct | 11.2% reduction |
| 62% (15 ct) | Adjusted to 18 ct | 16.7% reduction |
| 58% (14 ct) | 14 ct market rate | No adjustment |
Step 3: Gold Price Used for Valuation
To ensure fair and conservative valuation, Sai Gold OGL uses the lower of the following two figures for each purity level:
- The average of the preceding 30 days’ closing prices as published by the India Bullion and Jewellers Association (IBJA)
- The closing price of the immediately preceding day as published by IBJA
This approach protects both the borrower and the Company from short-term volatility in gold prices and ensures that loan amounts are based on a realistic and stable valuation.
Step 4: Deduction for Embedded Stones and Non-Gold Material
The weight of any stones, pearls, diamonds, coral, or other non-gold material embedded in the ornament is deducted from the gross weight to arrive at the net gold weight. The deduction applied depends on the proportion of stone weight relative to the gross weight of the ornament, as detailed below:
| Stone Weight (as % of Gross Weight) | Deduction Applied |
|---|---|
| Less than 5% | No additional deduction |
| 5% – 10% | Normal purity deduction + 1% |
| 10% – 25% | Normal purity deduction + 2% |
| 25% – 40% | Normal purity deduction + 5% |
| More than 40% | Normal purity deduction + 8% |
This methodology is uniformly applied across all Sai Gold OGL branches, ensuring every customer receives a consistent and fair assessment regardless of which branch they visit.
Our Commitment to Transparency
We understand that pledging gold is a significant decision. That is why our assaying process is designed to be simple to understand and completely transparent. Our trained branch staff are always available to walk you through the valuation process and answer any questions you may have before your loan is disbursed.
If you would like to know more about how your gold will be assessed, please visit your nearest Sai Gold OGL branch or contact our customer support team.