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Gold
How to calculate Gold Ornament Price?

How to calculate Gold Ornament Price?

Raviraj Parekh June 21, 2020

Gold ornament price

My friend today shared with me one mouth-watering offer of purchasing gold ornament at lowest rate. He heard about this offer on radio. At initial stage I was excited with this offer. After interaction with shop keeper I could make out that gold ornament sold by his jewelry shop is 18 Karat that’s why they are offering gold ornament at lowest rate. Lower karat jewelry 18 K contains more impurity hence it is lower in rate. So beware of such offers. Make sure to check these 5 signs before purchasing gold. Suitable gold karat for gold ornament is 22K.

5 Signs for checking purity of Gold

How to calculate Gold Ornament Price?

Calculate gold ornament price with simple formula given below.

Gold jwelry price = (Gold price per gm)* (Weight in gm) + (Making charges)*(Weight in gm) + GST

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Let’s try to understand from one example:-

  • If 22 K Gold rate per gram is 2530 Rs/-
  • Purchase weight  – 2 gm
  • Making charges – 200 Rs/- per gm

Price of Gold ornaments =2530* 2+200*2 =5660 +GST (3%) = 5828 Rs/-

One important point you need to remember gold price which you see online is of 24 K pure gold and for gold ornaments 22 K gold is used.

5 Best Reasons to Own Gold

Why Gold ornaments price is different at different shops?

Although same formula is applicable for calculating gold price, still you find difference in gold price from shop to shop. You might be wondering why gold ornament price is different in different shops. I am herewith answer.

  • Gold Rate: – Gold ornament price variation is mainly due to difference in gold rate. Many shop keeper purchase gold in bulk when price is low. They might be selling gold at lower rate compare to market to clear the stock. Reduction in gold price like this makes gold jewelry cheaper in that shop.
  • Making Charges: – Another reason of price difference in gold ornaments is change in making charges. Making charges varies between 150 Rs/- per gm to 300 Rs/- per gm.
  •  Discount:-  Sometime to clear stock gold shop keeper make various offers like reduction in making charges or flat discount this could be another reason for gold price variation.

gold price diffrence

Note – VAT (1%) on Gold is now changed to GST (3%).

In India huge demand in gold ornaments made gold market unorganized and unregulated. Common man always wonders where to purchase gold from Branded jewelery shop like TBZ, Tanishq or from family jeweler shop?

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Tags:gold gold before purchase gold jewellery Gold ornament gold ornament price gold rate difrence price of gold

About The Author

Raviraj Parekh

Raviraj is the man behind moneyexcel.com. He is PGDBA, engaged in blogging for 10 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

16 Comments

  1. Arun

    Hi sir

    your articles are very much interested and useful for reading. i learned many new things from your articles. Thank you very much and keep going.

    March 24, 2015
  2. wasim shaikh

    hi sir,

    thank you very much to give us this valuable and reliable information.after reading your article i feel myself more confident to purchase gold ornaments without any cheating by jwellers.

    July 26, 2015
  3. sudhirseetharam

    Many of the jewellers are charging wastage between 9 to 13% is it correct, are we to pay it.

    December 25, 2015
  4. Raviraj Parekh

    Dear Sudhir, I don’t think you should pay any wastage charges.Hope you are purchasing 22k Gold.

    December 29, 2015
  5. Dnyanesh

    I want purchase 50 gm gold so plz give estimate for that

    April 9, 2016
  6. Francis

    I was charged 14% VAT on 31/01/2017 for 916 gold purchase from a reputed gold dealer.
    Can someone justify and coment.

    February 1, 2017
  7. Dr s.verma

    Sir pls tell me tht is there any fix prize 4 making chg of hallmark gold.

    February 2, 2017
  8. kamal kumar

    Hi,
    Very good morning sir.I want to buy 40 grm gold neclace for my doughter.So please tell me.What is the actually making cost pay for this.

    February 26, 2017
  9. Raviraj Parekh

    Hello, Making Cost is not fix.It varies from shop to shop.

    February 26, 2017
  10. Sravani

    Sir wastage charges we should give or not on gold… Why jewellery shop are collecting 14-16 on small things plz fly me

    March 26, 2017
  11. Vikas S Thite

    Sir ,

    I have purchased 50.5gm necklace , gold shop person charging 1+1.1=2.1 percent tax on total value in Maharashtra, shall I pay 2.1 percent tax or only pay 1 percent tax.

    April 4, 2017
  12. Raviraj Parekh

    VAT applicable on Gold is 1% and not 14%.Kindly contact jewller and ask him for justification.

    April 5, 2017
  13. Raviraj Parekh

    No fixed price for making charge.It varies from vendor to vendor.

    April 5, 2017
  14. Raviraj Parekh

    VAT applicable on gold is 1%. Please ask for justification about 2.1% tax.

    April 5, 2017
  15. shweta

    ji hmne kan k earring kharide h..jiska vajan6.466grm h.. or rate total 26thousand pay kiya h…jisme gst or making charge bhi samil h…gst ka do bill h …or sme prize h.. pr making charge 5000 h ….kya ye rate shi h.. plz sure me

    January 14, 2018
  16. Rakesh

    Why any charge on gold item for Hallmark .

    September 19, 2018

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