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.
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
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.
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.
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?
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.
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.
sudhirseetharam
Many of the jewellers are charging wastage between 9 to 13% is it correct, are we to pay it.
Raviraj Parekh
Dear Sudhir, I don’t think you should pay any wastage charges.Hope you are purchasing 22k Gold.
Dnyanesh
I want purchase 50 gm gold so plz give estimate for that
Francis
I was charged 14% VAT on 31/01/2017 for 916 gold purchase from a reputed gold dealer.
Can someone justify and coment.
Raviraj Parekh
VAT applicable on Gold is 1% and not 14%.Kindly contact jewller and ask him for justification.
Dr s.verma
Sir pls tell me tht is there any fix prize 4 making chg of hallmark gold.
Raviraj Parekh
No fixed price for making charge.It varies from vendor to vendor.
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.
Raviraj Parekh
Hello, Making Cost is not fix.It varies from shop to shop.
Sravani
Sir wastage charges we should give or not on gold… Why jewellery shop are collecting 14-16 on small things plz fly me
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.
Raviraj Parekh
VAT applicable on gold is 1%. Please ask for justification about 2.1% tax.
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
Rakesh
Why any charge on gold item for Hallmark .