How do lenders verify the authenticity of gold coins versus jewellery?

When approving your gold loan, lenders often assess gold coins and jewellery a little differently because their form and purity standards are not the same. For jewellery, the first step is a purity check using tools such as XRF machines or spectrometers. If the ornament carries a BIS hallmark, it is reviewed, but the final decision for gold loan approval is based on the test reading, not the stamp alone. The appraiser then calculates the net gold weight by deducting stones, enamel, hooks, or other non-gold components. Valuation is done using the prevailing market rate for the relevant purity, such as 18K or 22K.

Gold coins are generally more straightforward to assess when approving a gold loan. They usually come with a BIS hallmark and, in some cases, a mint certificate. Even so, lenders still test the coin to confirm purity and rule out inconsistencies. Since coins do not generally contain stones or alloys, the full weight is typically considered for valuation. Pricing is linked to the applicable market rate for standard, high-purity gold coins, keeping resale liquidity in mind.