It’s a common practice in India that people tend to monetize their gold jewellery in dire needs of cash.
In India, we have lot of options available to buy any ornaments and same when it comes to pledge our gold, but when the situation arise to sell your scraps for any reason, may be to fund your children fee, buy a new flat/plot or for buying new ornaments the available options are very limited and are not transparent. Banks sell the gold bullion, bars or coins to individuals but they never buy back from them. So people have no choice but to sell their gold to the craftsmen or jewel smith. They take the advantage of situation and deduct the hefty amount as wastage charge, melting charge, etc from customers and pay maximum 60-65% of gold value which is not worth for customers.
It is observed that money en-cashed on selling gold leads to disappointment if you do not research following things properly before selling gold