Seller’s guide · reviewed 11 September 2026
What you need to
To sell gold in South Africa, bring three things: your original ID or passport, proof of your residential address, and any receipts or certificates for the item. You do not need a licence to sell your own personal jewellery. The one part that is not optional is selling to a buyer who is licensed to buy, and letting them record the sale.
Original ID or passport
Required · copy kept 5 years
Bring the physical document, not a copy. The general requirement under the Second-Hand Goods Act 6 of 2009 (section 21), read with the Regulations GN R285 of 2012, is that the buyer records who they buy from and keeps a copy of your identity document, with the sale record, for at least five years.
Proof of residential address
Required
A recent utility bill, bank statement or municipal account. A dealer must record your details, including where you live, so expect to give a current residential address.
Receipts or certificates
Recommended
Original purchase slips, a valuation or an assay certificate are not compulsory, but they support what the item is and help you hold the line on carat and weight.
Do you need a licence to sell your own gold?
For your own personal gold jewellery, the general position is that you, the seller, do not need a licence. The licensing regime in the Precious Metals Act 37 of 2005 is aimed at the businesses that deal in gold, not at an ordinary person selling a chain or a ring they already own.
The form of the gold matters, though. Scrap, broken or melted gold can fall within “unwrought” or “semi-fabricated” precious metal, which the Precious Metals Act treats differently from a finished, manufactured article (sections 1, 4 and 5). Because the precise treatment depends on the form of the metal, the safe rule is simple: do not try to read the Act against your own situation, and sell only to a buyer who is licensed to buy. Confirm the buyer’s status before you hand anything over, and check the current position with the SADPMR if you are unsure.
What the buyer must legally do
The paperwork you meet at the counter is the buyer’s legal duty, not red tape they invented. A compliant gold buyer must:
- Register the transaction and record your details. The general requirement under the Second-Hand Goods Act 6 of 2009 (section 21), read with the Regulations GN R285 of 2012, is that a dealer records who they buy from and a description of the item at the time of the sale.
- Keep the records. The register and the copy of your ID must be held for at least five years.
- Report large cash payments. Physical cash of R50 000 or more is reported to the Financial Intelligence Centre as routine compliance, not suspicion (FIC Act section 28; the prescribed amount in regulation 22B is R49 999,99). An EFT or cheque is not cash for this purpose.
This is why a buyer asks for your ID and your address. It is also why a buyer who wants no ID and pays untraceable cash is the warning sign, not the convenience.
Why the paperwork lands on you
The identity check can feel like being treated as a suspect for selling your own chain. It is worth knowing what it is actually for, because the honest answer is not flattering to the system that imposes it.
In its 2026/27 annual performance plan, the South African Diamond and Precious Metals Regulator stated that it lacks oversight of scrap jewellery, describing it as a major channel through which illegally obtained metals can be legitimised
. The Precious Metals Act that governs the trade came into force on 1 July 2007 and its own sections have never been amended, though the regulations made under it, which the Act treats as part of itself, were amended in 2008 and 2014. Those are the regulator's own words about its own remit, not our characterisation of anyone.
The consequence is worth sitting with. The least supervised point in the whole chain is the exact transaction you are about to do: someone walking into a shop with unmarked gold and walking out with cash. That is why the burden sits at the counter, on your ID and the buyer's record of the sale, rather than further up the chain where the volumes are.
It also reframes what it means when a buyer skips those steps. A dealer who waves off your ID is not being relaxed or doing you a favour. They are operating in the one part of the chain the regulator has said it cannot see into, and you would be the person whose gold went through it with no record that it was ever lawfully yours. Insist on the paperwork. It protects you considerably more than it protects them.
What to expect at the counter
A compliant buyer weighs and tests your gold in front of you, not out of sight, and gives you a written breakdown of the weight, the carat, the melt value and the price. Weighing done where the customer cannot see it is the single most common money complaint in our study of 4 295 reviews across 34 SA gold buyers. If that does not happen in the open, that is the moment to stop. Once you are ready, and you have found a buyer who is licensed to buy, two things are left: confirm the buyer is legitimate before you sell, and understand what percentage of the melt value they actually pay. That is where verifying the buyer and what buyers actually pay come in.
The Goldza Project Team
General information, not legal advice. Legal references: Precious Metals Act 37 of 2005 (SADPMR), Second-Hand Goods Act 6 of 2009 and Regulations GN R285 of 2012 (SAPS), Financial Intelligence Centre Act 38 of 2001 (FIC). Confirm current requirements with the SADPMR, SAPS and FIC.
Common questions
Selling gold requirements, answered
- What do I need to sell gold in South Africa?
- Three things: your original ID or passport, proof of your residential address, and any receipts or certificates for the item. You do not need a licence to sell your own personal jewellery, but you must sell to a buyer who is licensed to buy. Expect the buyer to take and keep a copy of your ID, weigh and test the gold in front of you, and give you a written breakdown of weight, carat, melt value and price.
- Why does a gold buyer need my ID?
- Because the law requires it. Under the Second-Hand Goods Act 6 of 2009 a dealer must record who they buy from and keep the paperwork, and for larger trades FICA (the Financial Intelligence Centre Act 38 of 2001) requires a high-value goods dealer to identify and verify its customer. A buyer who takes your ID is following the law. A buyer who refuses to take it is the warning sign.
- Do I need a licence to sell my own gold jewellery?
- As a general position, no. The licensing rules in the Precious Metals Act 37 of 2005 target the businesses that deal in gold, not an ordinary person selling their own finished jewellery. The form of the gold matters, though: scrap or melted gold can fall within “unwrought” or “semi-fabricated” precious metal (sections 1, 4 and 5), which is treated differently. The safe rule is to sell only to a buyer who is licensed to buy, and to confirm the current position with the SADPMR if you are unsure.
- Is a large cash payment for my gold reported to anyone?
- Yes, but only physical cash. Notes and coins of R50 000 or more are reported to the Financial Intelligence Centre as a routine Cash Threshold Report, not because you are under suspicion (the prescribed amount in regulation 22B is R49 999,99, and reporting is triggered above it). An electronic transfer or a cheque is not "cash" for this purpose and is not reported under that section. It is one of the controls that keeps stolen and illegal gold out of the legitimate market, and it is why large cash payouts are visible to the authorities.