How jewellers actually calculate your payout
The working happens in steps. First, your piece is weighed. Stones and pearls are taken out and set aside, because you are paid for gold only. Then comeskaat, the deduction. Then the remaining gold is valued at the rate for its karat, based on the day's 24K rate.
What kaat really is
Kaat literally means a cut. Your 22K jewellery is 91.6 percent gold and about 8.4 percent other metals, added for strength and soldering. When a shop buys it back, part of the kaat covers that non-gold share, and part covers the shop's testing cost and margin. On 22K and 21K pieces, a total deduction around 10 to 12 percent is widely considered fair. Where it grows beyond that, or where a second deduction hides inside a lowered karat, is where sellers lose serious money.
The three deductions to watch
Masha kaat. The traditional form: 1 masha deducted per tola is the commonly quoted standard, meaning a 1 tola piece is paid as 11 masha. Some shops deduct 2 masha per tola, and a few pay for as little as 9 or 10 masha per tola. Always ask the number before you hand over the piece.
Percentage kaat. The same idea expressed as a percentage: 10 to 12 percent on 22K and 21K, rising to 25 to 30 percent on 18K or heavily soldered ("tank wali") gold, where more non-gold material sits in the joints. Some jewellers phrase the same deduction as 1 ratti per masha, which is 12 ratti per tola, or 12.5 percent. Different words, same cut, so always translate it into a percentage before you agree.
Karat adjustment. The quietest deduction. The shop tests your 22K piece, announces it is really 20K, and pays the 20K rate on top of the kaat. Solder can genuinely pull a surface reading down, which is exactly why an independent test report matters.
Protect yourself before you sell
Keep your original purchase receipt safe: it records the karat, weight, stones and making charges, and it is your strongest document. Show shops a photocopy, not the original. If a piece is valuable, get it tested at a computerised XRF lab before selling and carry the report with you. Get quotes from two or three shops, and never feel rushed into a same-visit decision.
Frequently asked questions
Is kaat legitimate or a scam?
Partly legitimate. The alloy in your jewellery is genuinely not gold, and testing and refining cost money. A deduction around 10 to 12 percent on 22K covers that fairly. Where it becomes exploitation is double counting: a heavy kaat plus a lowered karat plus a low rate, all on the same piece.
Should I sell back to the shop I bought from?
Not automatically. Some shops honour their own pieces fairly; others rely on your loyalty to offer less. Compare at least one outside quote, receipt in hand, before deciding.
What about the making charges I paid?
Making charges are not returned at buyback. You are paid for the gold content only, which is why heavy making charges on a piece you may sell one day are worth thinking twice about.