How to Organize Old Gold Purchase Records and Vouchers

Why Old Gold Record-Keeping Is Critical for Jewellers

Every day, jewellery showrooms across India buy old gold ornaments from retail customers—either as an exchange towards new jewellery or as direct cash/bank purchase transactions.

While old gold intake is lucrative and essential for maintaining raw metal reserves, it carries substantial risks: - Stolen jewellery risks: If an undocumented ornament turns out to be stolen property, police inquiries and asset seizures can disrupt your showroom. - Tax compliance audits: Income tax authorities closely examine old gold purchases, requiring evidence that transactions were genuine and backed by verified seller identities. - Purity discrepancies: Buying scrap gold without clear melting deduction documentation often causes disagreements between staff and customers.

Standard Operating Procedure for Old Gold Intake

To safeguard your business, your counter team should follow a standardized 4-step procedure:

1. Mandatory Identity Verification (KYC) Before taking possession of old gold, capture: - Seller's government photo ID (Aadhaar, Voter ID, Driving License, or PAN). - Current residential address and verified mobile phone number. - High-resolution photograph of the ornament as received.

2. Transparent Testing & Deduction Recording Clearly record: - Initial Gross Weight on a calibrated scale. - Stone, enamel, and lacquer deduction. - Melted/tested net gold weight. - Tested purity rating (e.g. 88.0% or 21 Karat). - Deductions for melting loss (if agreed with the customer).

3. Legal Seller Declaration The generated voucher must contain a clear declaration statement signed by the seller: > *"I hereby confirm that I am the lawful owner of the gold ornaments listed above, that they are free from any pledge or encumbrance, and that I have surrendered them willingly at the agreed purity and market rate."*

4. Transparent Payout Records Document the exact mode of settlement: - Deduction from new jewellery invoice. - Cash payout (strictly keeping below statutory cash limits). - Direct NEFT / RTGS / IMPS bank transfer reference number.

Digitalizing Old Gold with Jexo

Jexo's dedicated Old Gold Purchase Management module eliminates loose handwritten paper slips. In less than 60 seconds, staff create a digitally numbered Old Gold Voucher with seller KYC attached, photo proof embedded, and full payout accounting logged in your store records.