Calculating Price of your Gold Jewellery
Indian people love buying gold in the form of designer jewellery
or coins for propitious reasons around special festivals as well as for investments. You may get gold funds at same cost across the same platform throughout the country; but, you will not get gold ornaments at the same price. This is because there is no standard rule for pricing and invoicing gold jewellery across the nation. The billing system varies from one jeweller to another.
Usually, every city has its own gold jewellers association, and the live gold rate
is declared by these associations every morning. And which is why the gold prices are not the same, even in each town. You should also know that several factors affect the final amount that you pay, such as gold rate, making charges, the value of gems, taxes, etc. So how do jewellers fix gold jewellery prices and how to make sure they are not cheating you? Let us find out how to calculate the gold price for jewellery.
The final price of any gold jewellery piece is based upon the below formula:
Final Jewellery Price = Price of (24 Karat 22 Karat or 18 Karat) gold per gram X (Weight of Gold to be bought in grams) + Jeweller’s Making charges + GST at 3% on (Jewellery Price + making charges)
Let’s understand this calculation through an easy example so that you get some more idea:
Suppose, you wish to buy a 22 karat gold chain
of weight 10.5 grams and the price of 22 Karat Gold listed by the jeweler on that day is Rupees 43,000 per 10 grams and the jeweler’s making charges are 15%; then the final jewellery price will be calculated as below:
- Price of 10 grams of 22 Karat Gold = Rs. 43,000
- Price of 1 gram of 22 Karat Gold = Rs. 43,000/10 = Rs. 4,300
- Price of 10.5 grams of 22 Karat Gold Chain = Rs. 4,300 * 10.5 = Rs. 45,150
- Making charges = 15% of Rs. 45,150 = Rs. 6,772
- So, the total value of gold chain excluding tax = Rs. 45,150 + Rs. 6,772 = Rs. 51,922
- GST @ 3% on the total price = 3% of Rs. 51,922 = Rs. 1,558
- And, finally the total price with tax becomes = Rs. 51,922 + Rs. 1,558 = Rs. 53,480
So, the final bill amount of your gold chain is Rs. 53,480
Moreover, there are certain things you should be aware of while buying gold to avoid being tricked. While buying any gold jewellery item studded with artificial diamonds or semi-precious stones, make sure that the value of gold in the piece is calculated based on the entire weight of that jewellery minus the weight of those studded diamonds or gemstones. The cost of diamonds and gemstones must be added separately.
Also, other factors like making charges or wastage charges may vary from one jeweller to the other. Hence, you need to check these charges along with other things before buying. To know more about these things to check before buying gold jewellery
, have a look at our article on the same topic.
Also, if you like you can explore our collection of gold coins online
and invest in this yellow metal in the pure form.