Gold Jewellery Making Charges: Things to Know

by Francis Alukkas | 30 September 2021 | GOLD JEWELLERY,GOLD PRICE


India is one of the biggest consumers of gold. When it comes to gold jewellery, buying gold around Dhanteras, Diwali, is considered auspicious. Jewelry purchases are a very popular means of investing in gold across the country. A jewellery investment also serves as a long-term ornament since it appreciates in value over time. However, along with the rising gold rate, the gold jewellery making charges plays a prominent role in the total spend and final price of gold jeweller

When buying gold jewellery, you need to keep in mind the gold jewellery making charges, as it makes up a substantial chunk of your total invoice. Some jewelers make charges that are based on a fixed percentage of the total weight of the jewelry, or they may make charges based on a fixed rate per gram of gold.

How is Gold Jewellery Making Charges Calculated in India

Gold jewellery making charges can make all the difference between buying jewellery from one place and another. It is difficult to avoid paying extra money as a making charge if you negotiate hard. In the case of a low making charge, you may be able to exchange the jewellery after using it for a few years, if you would be prepared to bear the loss to that extent, but with a high making charge, you may want to think twice.

If you want to avoid being taken advantage of, it is important to know how your local jeweler sets their price of gold jewellery. Additionally, a great deal of consideration must be given to the purity of gold jewellery when buying it.

There is no standard invoicing pattern within the country at the moment, and jewelers charge their customers differently. Neither the invoicing pattern nor the billing system are standardized in the country. Each jeweler uses a different system. There is a jewellery association in every city. Each jewellery association announces the gold rate in the morning, so the gold rate varies from one town to another. The gold jewellery making charges are determined by several factors like the type of jewellery and the kind of design as well as how it is made. Man-made jewellery tends to have higher gold jewellery making charges than machine-made gold jewellery. Also, read: Things to Know Before Buying Gold Online

Price of Gold Jewellery and the Role of Making Charges

In India, the jeweller has no standard billing practice, so a smart customer always needs to ask the jeweller to break down the final price. Each jeweller has a different billing system. Furthermore, some cities have also formed their own gold associations that determine the rate at which gold would be sold on a given day. Gold articles/jewellery are priced as follows:

Weight of the article (in grams) x Price of gold (22KT or 18KT) for the day + GST at 3% on the price of gold and gold jewellery making charges. Jewelry that has stones or gems added to it should have the weight of the gold article reduced by the weight of those stones or gems. The price of these stones or diamonds is different because they are separate gems.

As gold prices have risen beyond Rs 50,000 per 10 grams, flat-rate making charges will result in a significantly higher overall rate than percentage-based charges. Also, read: Gold Price 2021: Good Time to Buy?

Purity Check:

You should always check the purity of your gold jewellery before you purchase it. You might be confused about how to check the purity of gold. Look for hallmarking to determine purity. It is only through the hallmark that you can determine the metal’s proportion. As the official accreditation agency for gold jewellery, the Bureau of Indian Standards (BIS) certifies and hallmarks them.

Comparison of Gold Prices:

Gold prices are determined by gold purity. Gold’s price is determined by the market rate each day. Consumers can find the daily bullion rate displayed at all jewellery stores. In order to understand how gold is priced, you should first look at gold’s bullion price and discount it according to its purity. Also, check:Gold Investment scheme

No matter whether you are making your next gold purchase online or offline, it is always important to know in detail about the gold jewellery making charges to avoid paying excess money. From the purity of gold to the quality of designs, you deserve the best. Have any more doubts? Do ask in the comments.

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