Why Your Gold Jewellery Costs More Than Just Gold Price
Gold jewellery prices go beyond the raw gold market value. As gold prices near ₹1 lakh per 10 grams, understanding how jewellers calculate jewellery prices becomes crucial—especially ahead of Akshaya Tritiya 2025, when gold buying is believed to usher in prosperity.
Key Factors in Gold Jewellery Pricing
1. Current Gold Market Rate
The base price of gold jewellery starts with the daily gold rate.
- Jewellers refer to the 24KT gold rate but apply it proportionally to the purity of the gold (e.g., 22KT = 91.6% of 24KT).
- If the 24KT rate is ₹96,500 per 10 grams, the 22KT rate becomes ₹88,394 per 10 grams.
- This adjusted rate is then multiplied by the weight of the jewellery piece.
2. Making Charges
These are the labour and design costs incurred in creating the jewellery.
- Making charges vary based on design complexity and may be charged as a flat rate or a percentage of the gold price.
- For instance, at ₹499 per gram for an 8.9g gold chain, charges equal ₹4,441.10.
3. GST and Hallmarking Charges
The Goods and Services Tax (GST) of 3% applies to the gold price plus making charges.
- Additional hallmarking charges, such as ₹45, ensure BIS certification for purity and authenticity.
Mathematical Example: Gold Chain Pricing
Here’s a simplified breakdown of pricing a 22KT, 8.9g gold chain at ₹96,500 per 10g (24KT rate):
| Component | Amount (₹) |
|---|---|
| 22KT Gold Price (8.9g) | ₹78,670.66 (₹8,839.40 × 8.9) |
| Making Charges (₹499 × 8.9g) | ₹4,441.10 |
| Subtotal | ₹83,111.76 |
| GST (3%) | ₹2,493.35 |
| Hallmarking Charges | ₹45 |
| Total Price | ₹85,650 |
Tips When Buying Gold Jewellery
1. Stones and Gemstones
- Always separate the weight and value of embedded stones like diamonds or rubies.
- Upon resale, only the gold portion is considered, and stone weight is excluded from the gold value.
2. Detailed Gold Jewellery Bill
- Request a bill that itemizes:
- Gold purity and weight
- Making charges
- Price of gemstones (if any)
- Hallmarking details
- BIS mandates transparent invoicing to help in dispute resolution.
3. Purity and Fineness of Gold
- Purity is denoted in Karat (KT) and fineness:
- 24KT = 999/995 fineness
- 22KT = 916 (91.6%)
- 18KT = 750
- 14KT = 585
- Jewellery is mostly made of 22KT, 18KT, or 14KT, as 24KT is too soft for wearables.
4. Hallmark Verification
- From April 1, 2023, all jewellery must bear a 6-digit HUID code.
- Verify HUID codes via the BIS Care App to confirm authenticity.
| Purity Level | BIS Mark | Fineness Code |
|---|---|---|
| 22KT | 22K916 | 916 |
| 18KT | 18K750 | 750 |
| 14KT | 14K585 | 585 |
5. Exchange and Resale Policies
- Check if the jeweller offers 100% value for gold on exchange.
- Clarify if stone/gem values are included during resale.
- For cash returns, jewellers may deduct up to 10% of gold’s current value.
Final Thoughts
While selecting a design may be the easiest part, understanding how jewellers calculate gold jewellery prices can help you make smarter buying decisions this Akshaya Tritiya. Ensure you assess purity, making charges, and resale terms to maximize both value and satisfaction.
