Indian people love buying gold in the form of designer jewellery or coins for propitious reasons around unique festivals as well as for investments. You may get gold funds at the exact cost across the same platform throughout the country, but you will get gold ornaments at different prices. This is because there is no standard rule for pricing and invoicing gold jewellery nationwide. The billing system varies from one jeweller to another.
Usually, every city has its own gold jewellers association, and these associations declare the live gold rate every morning. This is why gold price calculators are different, even in each town. Several factors affect the final amount you pay, such as the gold rate, gold-making charges, the value of gems, taxes, etc. So, how do we calculate gold jewellery prices online? Let’s find out.
How Do Jewellers Calculate Gold Jewellery Price?
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 + gold making charges)
Calculating the price of gold jewellery involves several factors, including the current gold market price, the weight of the jewellery, and the purity of the gold used in the jewellery. Here are the steps to follow to calculate the gold price for jewellery:
Determine the purity of the gold: The purity of gold is measured in karats. The karat rating of the gold will be stamped on the jewellery. Pure gold is 24 karats, but gold used in jewellery is usually:
Weigh the jewellery: You'll need to weigh the jewellery in grams.
Look up the current market price of gold: The current market price fluctuates daily, so it's essential to look up the current price to get an accurate estimate.
Calculate the gold content of the jewellery: To do this, multiply the weight of the jewellery by the percentage of pure gold it contains. For example, if the jewellery is 18 karats (which means it's 75% pure gold) and weighs 10 grams, you would calculate the gold content as 10 x 0.75 = 7.5 grams of pure gold.
Calculate the value of the gold content: To do this, multiply the weight of the pure gold by the current market price of gold. For example, if the current market price of gold is rs50 per gram and the jewellery contains 7.5 grams of pure gold, the value of the gold content would be 7.5 x rs50 = rs375.
Add any additional costs: The final price of the jewellery will include any additional costs for labor, design, and other materials used in the jewellery.
It's important to note that the price of gold jewellery can vary widely depending on the piece's design, craftsmanship, rarity, and the jeweller's reputation. Let's understand this calculation through an easy example so that you get some more idea:
If your jewellery sells a 22 karat gold chain weight 10.5 grams, for Rs. 43,000 per 10 grams, the jeweller's gold making charges are 15%. 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
*Disclaimer: Checkthe current gold rate before the calculation.
When buying gold jewellery, several essential factors must be considered to ensure you make a wise and informed purchase. Here are some key points to keep in mind:
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. You can also go though our jewellery education guide for more information and clarity.
Also, other factors like making charges or wastage charges may vary from one jeweller to the other. So, you'll need to check these charges and other things before buying. To know more about these things to check before buying gold jewellery, look at our article on the same topic. Also, if you like, you can use our gold purity calculator for easy understanding.
Purity of Gold (Karatage): Gold jewellery is typically labeled with a karatage value of 24K, 18K, or 14K. The higher the karat, the higher the gold content and the more valuable the piece. However, higher-karat gold can be softer and more prone to scratches and damage.
Color: Gold comes in various colors, including yellow, white, and rose. The color is influenced by the metals alloyed with gold. For instance, white gold jewellery is often alloyed with metals like palladium or nickel, and it's usually plated with rhodium to enhance its appearance rose gold jewellery is typically created by blending pure gold with copper, imparting rose gold's warm reddish hue characteristic—this alloying process results in a charming and distinctive color.
Hallmarks and Certification: Look for hallmarks or stamps on the jewellery that indicate its authenticity and purity. In some regions, reputable jewelers provide certificates of authenticity that specify the gold content and other relevant details.
Return Policy and Warranty: Understand the jeweler's return policy and whether the piece has a warranty. This can provide peace of mind if you're unsatisfied with your purchase or encounter any issues. By carefully considering these factors, mainly calculating gold jewellery price, you can decide when to buy gold jewellery that aligns with your preferences, style, and budget.
Buy Latest Gold Jewellery with Price at Melorra
Now that you know how to calculate gold price for jewellery, explore lightweight, durable gold jewellery in 14k, 18k, and 22k gold at Melorra. We have the best jewellery designs in categories such as:
Go ahead to explore our bestsellers jewellery staples such as:
Shop from our collection of gold coins online and invest in this yellow metal in its pure form. Calculating the price of gold jewellery items involves considering key factors such as the purity of the gold, current market rates, weight, and craftsmanship. By understanding these elements and using reliable formulas or online calculators, individuals can make informed decisions when buying or selling gold jewellery. Staying updated with market trends and consulting reputable sources to ensure fair and accurate pricing is crucial.
The price of gold jewellery is determined by the weight of the gold used, its purity (karat), and the current market price. Typically, the calculation entails multiplying the weight of the gold by its purity and then multiplying it by the current market price per gram or ounce of gold.
The percentage of pure gold in the jewellery is indicated by gold purity, generally measured in karats (e.g., 18k, 24k). The purer the gold, the greater the karat. The purity of gold influences the price of jewellery, as purer gold is more valuable. As a result, jewellery with a more excellent karat value will typically be more expensive.
The price of gold changes due to a variety of economic factors. These variations have a direct impact on the price of gold jewellery. When the market price of gold rises, so does the cost of creating jewellery, resulting in greater jewellery prices. When the market price falls, jewellery prices may fall as well.
No, the weight and value of gemstones are generally not considered when calculating the gold price for jewellery. Gemstones are priced individually according to carat weight, quality, and type. When calculating the total price of studded jewellery, the cost of the gold and the value of the gemstones are added together.