When you walk into a jewellery store and check prices, you’ll notice that the final bill is much higher than the gold rate advertised that day. That’s because the selling price of gold jewellery includes several components beyond just the metal's cost.

Here’s a full breakdown of how the price is calculated:

1. Base gold Value

The first component is the gold rate per gram, which changes daily based on international market trends and import duties.

  • Most indian jewellery is made from 22KT gold (91.6% pure).

  • Pure 24KT gold is typically used for coins or bars, not jewellery (too soft).

  • The jeweller will calculate:

    Gold Rate x Weight (in grams)

 2. Making Charges (Labour & Design)

This covers the manual and machine work involved in creating the piece. It includes casting, finishing, polishing, and sometimes hand-crafting.

  • Fixed or percentage-based: Typically 8% to 35% of gold value.

  • Intricate designs or branded jewellery often have higher charges.

 Tip: Always ask if the charge is a fixed amount or a percentage.

 3. Hallmarking Charges

Hallmarking certifies that the gold used is of stated purity.

  • The Bureau of indian Standards (BIS) manages hallmarking.

  • As of 2024, hallmarking is mandatory in most parts of India.

  • Charges are minor—around ₹35 to ₹100 per item.

 4. Cost of Stones or Additional Elements

If your jewellery contains:

  • Diamonds

  • Precious/semi-precious stones

  • Enamel work

  • Other metals (platinum, silver)

Then those materials are priced separately, based on weight, quality, and market value.

 5. GST (Goods and services Tax)

The government applies 3% GST on the entire cost, including:

  • Gold value

  • Making charges

  • Hallmarking

  • Stones (if applicable)

 Example Calculation

Let’s say you buy a 10-gram gold chain on Akshaya Tritiya:

  • Gold rate: ₹6,000/gram
    → ₹60,000 for 10g

  • Making charges: 15% → ₹9,000

  • Hallmarking: ₹45

  • GST (3%): ₹2,077 (on ₹69,045)

 Final Price = ₹71,12 Tips to Save When Buying Gold

  • Compare making charges across jewellers.

  • Buy plain gold if you're investing, not designer pieces.

  • Keep the invoice and purity certificate for resale or exchange.

  • Check for BIS hallmark (6-digit HUID code).

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Sindujaa D N

30/04/2025 11:02 PM