TomorrowMakers

The festive season is here as Akshay Tritiya, Dhanteras, and Diwali are around the corner. This ups the demand for gold jewellery among households, causing a spike in gold prices. In the last week of October 2023, gold prices jumped to ₹61,845 per 10 grams. Besides the gold rate, a making charge and a GST of 3% is also levied on gold jewellery which increases the overall cost of buying gold. While the GST and the gold rates are

• Gold demand surges during the festive season, and this year, gold prices have already soared to ₹61,845/10 gram

• Making charges are also levied on gold jewellery either on a per-gram basis or on the total cost.

• You can reduce the making charges by comparing them across jewellers and looking for festive offers

• Compare the charges under the per gram and total value methods and choose the method where the cost is the lowest

Also Read – Check out some gold gifting options this festive season

Methods of Levying Gold Making Charges 

There are two primary ways in which sellers levy making charges on gold jewellery. They are as follows –

• Per Gram Rate

Under this method, the charge is levied per gram basis, like ₹200 per gram.

• Value-Based Rate

Some jewellers charge a flat percentage on the overall value of the gold you buy, like 12% or 10%. So, if you buy jewellery worth ₹1 lakh and the making charge is 12%, you pay ₹12,000 in absolute terms.

Tips to Reduce Gold Making Charges

If you are looking to save on the making charges of gold jewellery this festive season, here are some tips that you can use –

• Look for festive offers wherein many jewellers offer discounted or lower making charges to incentivise customers to buy gold jewellery.

• If you are buying jewellery with intricate designs, paying on a per-gram basis would be better, as the gold’s weight wouldn’t change much due to the design.

• If gold prices are rising, per-gram-based charges would give lower costs.

• Compare the making charges across jewellers and choose a seller whose rates are the lowest.

• Compare the difference in cost by calculating the making charges using both methods. Choose the method that gives the lowest cost.

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The Bottom Line

While you put your savings into buying a beautiful piece of gold jewellery, some simple tips can help you save on the making charges. Use these tips to buy the jewellery within your budget.

Also Read – Should you buy digital gold? Know here