- Date : 29/09/2022
- Read: 4 mins
Making charges on gold jewellery
Gold jewellery has always been popular, especially in India. People have been purchasing gold in various forms for over a hundred years. Gold jewellery, especially, is not only said to add grace and charm to Indians but also acts as an amazing form of investment that can bring in quite high returns. However, while buying physical gold, you have to remember that the same quantity of gold can cost you differently due to its making charges. This is because the making charges of gold jewellery vary from one ornament to another.
Gold jewellers usually charge the making cost at a flat rate per gram of gold or as a percentage of what the ornament costs. For instance, if the cost of a 10-gram gold chain is Rs. 52,000 and the making charges are 10%, then the total amount that you will have to pay is Rs. 57,200 + GST. Currently, the valuation of gold is on the rise. Naturally, the price of gold jewellery is also increasing. Thus, if you are planning on buying gold, you must be aware that the different types by which making charges are levied can affect the total cost of the jewellery to a huge extent. The price is much more affected during sudden and drastic jumps in the price of gold. Thus, be aware of the charge levied as it will constitute a substantial part of the total bill.
Related: Gold ETF Vs Gold Saving Fund: Which one is right for you?
Making Charges on Gold jewellery
Making charges can significantly impact the total cost of the jewellery you must pay. There is no practice in generating a standard invoice among gold jewellers in India. Thus, asking for the final price breakup is always a smart decision. This is a very good practice as the jewellers' billing system is not the same. Also, there are jewellery associations in cities that decide the rate of gold per gram for each day. Thus, our final bill includes the price per gram for that specific day for the total weight of the ornament, making charges, and also the GST.
Related: Top 5 Gold ETFs in India
Things to keep in mind while buying gold jewellery
Here are two things that you must keep in mind:
1. Purity - While buying gold jewellery, one should always remember to check its purity. You can easily check the purity of the gold from the hallmark. A hallmark clearly states the genuine and official proportion of the gold.
2. Cross-checking - As we already mentioned before, the price of gold changes each day depending on the current market rate. You will easily know the market bullion rate, which is displayed at all jewellery stores. To know the process for price calculation, you can discount the bullion price depending on the purity of the gold.
Making Charges on different Gold ornaments
Different ornaments have varied making charges. Gold bangles and chains attract the least charge, between 6% and 14% of the cost of gold. You must be wondering why only bangles and chains have the least making charges. This is because several designs in bangles, and chains are machine-made, thus mass production. There is no added individual labour charge. Thus, compared to other ornaments or other jewellery categories, making bangles and chains requires less labour. Hence, the least making charges are levied on purchasing gold bangles or chains.
The more intricacy involved in gold jewellery, the more your bill will be. So if you wish to buy a very intricately designed pair of gold earrings or necklace, it would attract a very high charge. You could be charged as much as 20-25% of the cost of gold as the making charge for a lightweight gold ornament with intricate work. There is, however, a silver lining. The making charges differ from jeweller to jeweller. Thus, you would not be able to bargain on the price of gold, but independent making charges provide you with the opportunity to bargain with the jeweller. If the company accepts, you can request a discount as low as 5-10%. However, this discount is solely on the making charges and not the overall bill you pay.
Therefore, while buying gold, you should always look out for the making charges as it can lead to quite a hike in the total amount you have to pay.
Related: What makes a better wedding gift: Gold Jewelry or Gold Bonds?
