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?