Making and Wastage Charges of Gold Jewellery
While purchasing gold jewellery, you consider the stunning patterns, exquisite designs, or subtle elegance as well as the ones that meet your price range. However, a majority of individuals are unaware of the process involved in making pure gold your favourite piece of jewellery. Therefore, before purchasing gold jewellery, you should be aware of the numerous aspects that determine the final price you pay.
Process of Making Gold
When you purchase gold jewellery, you are paying for more than just the design created by the jeweller or the gold item's weight. The price you pay includes the purity of gold as well as the artisans' craftsmanship who moulded, polished, cut, and sculpted that gold into intricate designs.
Price of gold jewellery = gold price per gram of a specific purity x weight of gold jewellery x making charges per gram + GST.
The price of gold jewellery is based on all these factors and can vary amongst jewellers. However, the gold price per gram is constant in a city and mostly similar all over India.
What are Making Charges of Gold
The cost of the procedure involved in developing and designing each item of gold jewellery that you purchase is referred to as the making charge. It is nothing but the cost of making jewellery from raw gold. To calculate the making charges, gold's purity plays a key role. If gold is hard and durable, it can be shaped into exquisite designs.
For every item of gold jewellery, the making charge is different. Similarly, making charges may differ from jeweller to jeweller. A variety of methods are used by jewellers to calculate the making charges. While some jewellers charge a flat amount per gram of gold, others charge a percentage of the overall weight of the jewellery. Making charges for machine-made jewellery that is mass market such as simple gold chains, often vary from 3% to 25%.
What are Wastage Charges of Gold
The process of making gold jewellery includes melting, cutting, and moulding it, which may result in some waste when the pieces are linked together to produce a single piece of jewellery. Thus, traditional jewellers levy wastage charges for the gold wasted in the process of making the jewellery. The concept of wastage charges arose from the fact that jewellers used their hands to make jewellery during the olden times, leading to some gold wastage. Similarly, machine-made jewellery includes wastage charges.
Tips to Buy Gold Jewellery
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 on the same.