- Date : 29/09/2022
- Read: 5 mins
Understand the impact of gold making charges, learn about the factors that determine their cost, and find out how to make informed decisions for a cost-effective gold purchase.
With the 24-carat gold price in India reaching Rs. 59,450 per 10 grams as of August 2nd, 2023, and a likely continued upward trend due to inflation, gold buyers may find it hard to make the purchase. Further, buyers also need to take into account an additional factor of concern - the making charges associated with buying gold. Making charges are the fees that jewellers levy for their craftsmanship, labour, and design work involved in creating a piece of jewellery. These charges can vary widely based on factors like the intricacy of the design, the type of jewellery, and the jeweller's brand value.
Typically, the gold making charges fluctuate between 8% and 35% of the overall gold price. However, since the prices are not fixed, it can help to shop around and compare making charges from different jewellers to ensure you are getting the best value for your money. It is also important to inquire about making charges and negotiate with the jeweller if possible. Some jewellers might have fixed gold making charges, while others might be willing to adjust the cost based on your preferences.
Read this article to know the different factors that affect making charges on gold and buy gold the smart way!
Key highlights
-
Gold making charges are additional fees for craftsmanship and design that are added to the cost of gold jewellery
-
Making charges typically range between 8% and 35% of the total gold price
-
Making charges differ for various gold ornaments, with intricate designs incurring higher making charges for gold jewellery per gram
Related: Gold ETF Vs Gold Saving Fund: Which one is right for you?
Making Charges on Gold jewellery
Gold making charges per gram can significantly impact the total cost of the gold jewellery. 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:
-
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.
-
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 gold making charges per gram. 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. Gold 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 gold making charges per gram as they 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?
Gold। How to calculate while buying gold jewellery
Read latest articles on Gold.
With the 24-carat gold price in India reaching Rs. 59,450 per 10 grams as of August 2nd, 2023, and a likely continued upward trend due to inflation, gold buyers may find it hard to make the purchase. Further, buyers also need to take into account an additional factor of concern - the making charges associated with buying gold. Making charges are the fees that jewellers levy for their craftsmanship, labour, and design work involved in creating a piece of jewellery. These charges can vary widely based on factors like the intricacy of the design, the type of jewellery, and the jeweller's brand value.
Typically, the gold making charges fluctuate between 8% and 35% of the overall gold price. However, since the prices are not fixed, it can help to shop around and compare making charges from different jewellers to ensure you are getting the best value for your money. It is also important to inquire about making charges and negotiate with the jeweller if possible. Some jewellers might have fixed gold making charges, while others might be willing to adjust the cost based on your preferences.
Read this article to know the different factors that affect making charges on gold and buy gold the smart way!
Key highlights
-
Gold making charges are additional fees for craftsmanship and design that are added to the cost of gold jewellery
-
Making charges typically range between 8% and 35% of the total gold price
-
Making charges differ for various gold ornaments, with intricate designs incurring higher making charges for gold jewellery per gram
Related: Gold ETF Vs Gold Saving Fund: Which one is right for you?
Making Charges on Gold jewellery
Gold making charges per gram can significantly impact the total cost of the gold jewellery. 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:
-
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.
-
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 gold making charges per gram. 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. Gold 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 gold making charges per gram as they 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?
Gold। How to calculate while buying gold jewellery
Read latest articles on Gold.
