Practical Guide to Selling Used Gold in Sham Shui Po: Four Transparent Steps—Authentication, Quotation, | Gu Jin Jian Bao

Sham Shui Po District has a high density of gold shops, but the process and price transparency for selling old gold vary. Some quotes include"fire assay"deductions, some use different weighing standards, and some charge extra fees under the guise of"appraisal fees."Below is a transparent four-step process to help you find the most reasonable buyback price in Sham Shui Po District.

[Phase 1] Appraisal: No burning, no washing, use instruments to determine purity

The first step in old gold Buyback is to confirm the item's"identity"– gold purity and authenticity. This step directly determines the subsequent quote, so it cannot be overlooked.

1. Differences in gold purity and types

Gold purity is usually calculated in "Karat" (K gold), with pure gold being 24 parts.

• Pure gold (24K): Purity 999.9 or 999, commonly known as "four nines" or "three nines."
• K gold (e.g., 18K): Contains 75% pure gold, with the remaining 25% being copper, silver, nickel, etc. Market 18K yellow gold, 18K white gold, and 18K rose gold all have this 75% content; the difference lies only in the combination of other alloys.
• Gold-plated (GP) / Gold-filled (GF):Has a gold layer on the surface, but the body is not gold. The gold content in these items is extremely low, and their buyback value differs significantly from K gold. For differentiation methods, refer toHow to distinguish between gold-plated, gold-filled, and pure gold.

2. Non-destructive testing: XRF Fluorescence Spectrometer

Traditional appraisal methods sometimes involve burning with fire or scratching with a touchstone for acid testing – the former is highly destructive, and the latter is highly subjective. Professional recyclers now commonly use XRF fluorescence spectrometers:

• XRF Fluorescence Spectrometer: Non-destructive. The instrument's probe is pointed at the item for a few seconds, and the screen instantly displays the percentages of elements such as Au (gold), Ag (silver), Cu (copper). The entire process is conducted in front of the customer, and everyone observes the numbers together.
• Specific gravity as a supplement: The density of pure gold is approximately 19.3 g/mL, much higher than most alloys. If the instrument's reading is questionable, specific gravity testing will be used for cross-verification.

If the item is K gold, it will accurately read out gold content percentages like 75%, 58.5%, etc. If it is gold-plated or gold-filled, the instrument will also show this, at which point the seller can choose – to proceed with the transaction at the lower purity or take it back. Customers in Sham Shui Po District are most concerned about this part: "How real is my item?" The answer is completely laid bare on the table.

[Phase 2] Quoting: Lay out the formula, don't just listen to a total sum

After the appraisal is completed, it's time for quoting. The gold buyback price is not determined by a single number but by a transparent formula:

buyback price = Daily Gold Price × Weight × Purity Ratio − (Potential Fees)

1. Daily International Gold Price

Gold prices fluctuate daily, influenced by factors such as the US dollar exchange rate, inflation, geopolitical risks (wars, sanctions), and changes in central bank reserves. In practice, professional recyclers refer to the latest international market quotes and the daily gold jewelry purchase price, converting the international gold price, originally quoted in US dollars, into Hong Kong dollars based on the daily exchange rate for calculation. When comparing prices, you can ask the shop to show you their gold price source (e.g., London Gold, Shanghai Gold Exchange, or real-time quotes from a major bank).

2. Hidden Costs: Commission and Fire Assay Loss

Traditional gold shops or jewelry stores often deduct "fire assay loss" or "commission" in addition to their quoted price. Fire assay loss originally referred to the material loss from melting to remove impurities, typically ranging from 2% to 5%. The problem is that modern recyclers usually accumulate a certain amount of gold before sending it to a refinery, and the actual physical loss is already covered by the refinery – the "fire assay loss" claimed by recyclers is essentially a way to disguise their profit as a cost.

Practical approach: Directly ask if there are"fire assay deductions for 999.9 pure gold"and"how K gold purity is calculated."Our commitment for 999.9 pure gold Buyback isno fire assay or commission deductions. Pure gold is calculated based on its full weight, and K gold is calculated based on the actual purity ratio read by the XRF. This is also the key question that customers in Sham Shui Po District most frequently use to compare different shops.

Regarding fire assay traps, you can refer to How fire assay deductions can cost you ten thousand dollars for actual figures, or consult the more comprehensive Dissecting Common Gold Buyback Traps in Hong Kong.

[Phase 3] Weighing: Standard electronic scale, operation on the counter throughout

In gold transactions, the accuracy of weight directly affects the final amount received. This step should be conducted entirely on the counter.

1. Hong Kong's Sima System Units

Gold trading in Hong Kong commonly uses the Sima system units of "liang, qian, fen, li". The conversions are as follows:

Unit	Conversion Relation	Approximately in grams (g)
One Tael	10 Qian	37.429 grams
One Qian	10 Fen	3.7429 grams
One gram (g)	Approx. 0.2666 Qian	1.000 gram

A point to be careful about: Quoting in "grams" and weighing in "qian" (or vice versa), the rounding in between can result in a small loss of weight. The safest approach is to request the shop to use the same unit from start to finish.

2. Three actions for transparent weighing

• Standard electronic scale: Use an electronic scale that complies with Hong Kong government metrology standards, with an inspection sticker and serial number on the scale. Some old shops in Sham Shui Po District use scales that haven't been calibrated for decades, which is a potential source of error.
• On-counter operation: The weighing process must be carried out in front of the customer, with the display facing the customer, and everyone observing the numbers together.
• Pre-removal of non-gold parts: If the jewelry has diamond or gemstone settings, these non-gold weights should be weighed beforehand and then deducted. The practice of directly "deducting 5% proportionally" usually over-deducts for small gemstones.

[Phase 4] Cash handover: ID card, FPS, compliant records

After confirming the quote and weight are correct, the final step is to safely and quickly complete the payment handover. Customers in Sham Shui Po District often prefer cash, but for large transactions, electronic methods are actually more secure.

1. Payment methods

• Cash counted on site: Suitable for small to medium-sized transactions (usually below HKD 50,000). Shops will use a cash counting machine to verify the authenticity of banknotes.
• Bank transfer / Faster Payment System (FPS): Suitable for large transactions. Funds are credited instantly, and there's no need to carry cash on the street.

2. Transaction records under Hong Kong law

Precious metals trading in Hong Kong must comply with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615):

• Customer identification: To sell gold, you need to present your original Hong Kong identification document (permanent resident identity card) for the dealer to keep basic records.
• Due diligence for large transactions: For single or a series of related transactions amounting to HKD 120,000 or more, Class B registered dealers will conduct additional customer due diligence. This is a legal requirement and does not imply that the transaction is problematic.

Throughout the entire process, the gold will never leave your sight until you confirm receipt of payment. If you wish to understand the practical procedures in other areas after completing the transaction, you can refer to the Wan Chai Gold Selling Practical Guide and Tsuen Wan Gold Buyback Process. The procedures in the three areas are essentially consistent, with differences primarily in the transportation arrangements for on-site purchases and appointment methods.

Common Questions from Sham Shui Po Residents

Q1: My gold jewelry has been stored for decades and is very dull and dark. Should I clean it before selling?
No need. Recyclers will eventually melt it down, and surface darkness does not affect purity. Excessive cleaning might even remove some identification marks, adding an extra step to the appraisal. Bringing it as is is the most straightforward.

Q2: Can I still sell a broken necklace or a deformed ring?
Yes, they are accepted. Physical deformation does not affect gold purity and can be weighed at full weight.

Q3: Is there a pick-up service in Sham Shui Po District?
Yes, free home pick-up is available across Hong Kong, Kowloon, and the New Territories. First, WhatsApp a clear photo and indicate the approximate weight and quantity, then schedule a pick-up time. For elderly customers or single female customers, arrangements can also be made for transactions in public spaces such as outside banks or in mall lobbies in the area.

Q4: Besides gold jewelry, what else do you buy?
Buyback items include gold bars, gold nuggets, K gold ornaments, gold coins, old silver dollars, and old banknotes. For a complete monetization process, you can refer toHow to Monetize Unused Gold Jewelry and Gold Bars: A Complete Guide to Buyback Practices in Hong Kong, or directly view common categories in the Buyback Gold Jewelry series.

Contact Information

For residents in the Sham Shui Po area (including nearby neighborhoods such as Cheung Sha Wan, Shek Kip Mei, and Yau Yat Chuen) looking to monetize old gold jewelry, you can get a free appraisal first. Gukin Appraisal offers on-site XRF appraisal, standard electronic scale weighing on the counter, and instant cash or FPS settlement:

• WhatsApp: 98342057
• WeChat: john19998
• Phone: 852-98342057

Send a clear photo, and we'll reply with a reasonable price range within half an hour.