Gold Buying Scams in Chennai — 8 Red Flags Every Seller Must Know

Not all gold buyers operate honestly. Knowing common scam tactics protects you from losing thousands in a single transaction. Here are eight red flags every gold seller in Chennai should know.

Red Flag 1: No XRF Testing — Only Acid Test

Acid testing is imprecise and damages gold's surface. Dishonest buyers use it to claim lower purity than your gold actually has. Always demand XRF. If refused, leave.

Red Flag 2: Testing Done Out of Sight

If weighing or testing happens in a back room, you cannot verify results. Every legitimate buyer tests in front of you. Walk away from any buyer who takes your gold away from you.

Red Flag 3: Making Charge Deductions

Making charges apply when buying new jewellery — never when selling old gold. This silent trick can cut your payout by 5–15%. The correct formula: Weight × Purity Factor × Rate. Nothing else.

Red Flag 4: Scale Not Shown Clearly

Rigged scales are a real problem. Always watch the digital display during weighing. If the buyer does not show you the reading clearly, that is a red flag.

Red Flag 5: Rate Quoted Before Testing

If a rate is offered before purity is tested, the rate is not based on your gold's actual purity. A legitimate buyer can only quote accurately after XRF testing.

Red Flag 6: Sudden "Purity Problem" After Agreement

A bait-and-switch classic: buyer gives a good verbal rate, then after "testing" claims lower purity and offers much less. This exploits the sunk-cost feeling of already being in the shop.

Red Flag 7: No Receipt or Documentation

A registered buyer provides a receipt. No documentation = no accountability and no legal recourse if something goes wrong.

Red Flag 8: Immediate Pressure to Decide

"This rate is only for 5 minutes" — a pressure tactic. Gold rates do not change that fast. A confident, honest buyer has no reason to rush you. Take your time always.

How Pragadee Gold Is Different

We test in front of you, show you the XRF screen, display the calculation openly, provide a receipt, and never pressure you. If you choose to leave without selling — that is your right, always honoured.