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Gold Making Charges: The Ultimate Calculation Guide

Gold has been valued for thousands of years. In ancient times, kings and queens wore gold crowns and ornaments to show their power and wealth. Temples were decorated with gold, and families passed down from one generation to the next as a symbol of prosperity. 

Even today, gold remains one of the most loved and trusted metals. People buy gold jewellery not only as an investment but also because it holds emotional value. It has become a part of our lives, from small gifts to wedding ornaments. 

But when we buy gold, we often notice that the price changes from one jewellery store to another. Even if the gold purity and weight are the same, the final price can still differ. The reason for this difference is something known as gold making charges. 

These charges are added to cover the cost of the work, skill, and time it takes to turn raw gold into a piece of jewellery. Understanding these charges helps you know what you are really paying for. Let us look at what they are and how to calculate them. 

Understanding Gold Making Charges in Jewellery

When you buy gold jewellery, you are not only paying for the gold itself. You are also paying for the workmanship that gives it design and shape. This extra cost is called gold making charges. Making charges cover the process of melting, cutting, shaping, and polishing the gold to create a finished ornament. They represent the labour and skill of the craftsman who made the jewellery. 

What are Making Charges

Making charges are the amount jewellers add to the gold price to cover the cost of making the jewellery. It includes the labour work and artistic effort that goes into making each piece. The more complex and detailed the design, the higher the making charges will be. Simple designs, on the other hand, usually have low making charges.

Different Types of Making Charges on Gold

Jewellers calculate gold making charges in  a few different ways. The method they use affects the final price of your jewellery. 

1. Fixed Making Charges

Some jewellers charge a fixed amount for a jewellery piece, no matter how much it weighs or how simple or complex it is. 

For example, a pair of earrings may have a fixed making charge of ₹2,000

2. Percentage-Based Making Charges

In this method, the jeweller calculates making charges as a percentage of the total gold value. For example, if your gold chain is worth ₹50,000 and the making charge is 10 percent, you will pay ₹5,000 as the making charge. 

3. Per Gram Making Charges

In this method, the jeweller charges a specific amount for every gram of gold. This is known as the gold making charge per gram. 

For example, if the rate is  ₹300 per gram and your ring weighs 10 grams, the making charge will be ₹3,000.

This method is easy to understand and commonly used for plain gold jewellery. 

How to Calculate Making Charges for Gold

Now that you know the types, let us see how to calculate gold jewellery price based on the making charges. There are two main ways – cost  per gram and percentage based. 

1. Cost per Gram Method

In this method, you multiply the making charge per gram by the total weight of gold.

Formula: 

Making Charge = weight of Gold × Making Charge per Gram

Example:

If the making charge is ₹250 per gram and your bracelet weighs 12 grams,

Making charge = 12 × ₹250 = ₹3,000

2. Percentage- Based Method

Here, the making charge is calculated as a percentage of the total gold value.

Formula:

Making charge = (Percentage Rate ÷ 100) × Value of Gold

Example: If the gold value is ₹60,000 and the making charge is 10 percent,

Making Charge = 10 ÷ 100 × ₹60,000 = ₹6,000

Always check with your jeweller which method they are using before you make a purchase. 

Also read: How to Check Gold Purity: Essential Tips for Jewellery Buyers

Factors That Affect Gold Making Charges 

The cost of making gold jewellery depends on several factors.

1. Design complexity

 The more detailed and decorative the design, the higher the making charge. Simple gold bands or chains have lower charges compared to designs with intricate patterns or gemstones.

2. Craftsmanship

Handmade jewellery costs more to make because it takes more time and skill. Machine made jewellery usually has lower charges. 

 3. Weight of the Jewellery

Heavier jewellery requires more work and time to polish and finish, which increases the cost.

4. Market Trends

During the wedding or festive seasons, demand for gold increases, and so do the making charges.

5. Brand Value

Established jewellery brands charge more because of their quality, trust,and exclusive designs. 

Other Hidden Costs to Know

Apart from the gold making charges, a free other costs may also be added to your bill. It is important to be aware of them.

  • Wastage Charges: For the small amount of gold while making the jewellery
  • Hallmarking Charges: For testing and certifying the purity of gold
  • Stone Setting Charges: For jewellery that has diamonds or gemstones
  • Polishing and Finishing Charges: For the final touch and shine of the jewellery
  • Goods and Service Tax (GST): Currently, a 3 percent tax on the total value, including making charges

Tips to Save Money on Making Charges

  1. Ask for a Detailed a Bill: Always ask your jeweller to list gold weight, price, making charges, wastage, and tax separately
  2. Compare Prices: Visit a few jewellers before buying. This helps you understand the market rate and choose the best deal
  3. Negotiate the Making Charges: Many jewellers allow some flexibility especially for  large purchases
  4. Buy Hallmarked Gold: It ensures purity and protects you from fraud
  5. Understand the Exchange Policy: check how your  jeweller handles returns or exchanges before buying 

How to Calculate Gold Jewellery Price 

Here is a simple formula to find the final price of your jewellery:

Final Jewellery Price =  (Gold Rate × Weight) + Making Charges + GST

Example:

Gold Rate = ₹6,000 per gram

Weight = 10 grams 

Making Charges = 10 percent of gold value

Gold Value = ₹6,000 × 10 = ₹60,000

Making Charge =  10 percent of ₹60,000 = ₹6,000

Subtotal =  ₹66,000

GST (3 percent) =  ₹1,980

Final Jewellery Price = ₹67,980

Gold has been valued for its beauty and purity for centuries. From ancient times to today, it has held a special place in our lives as a symbol of wealth, love, and celebration. Knowing how to calculate making charges for gold helps you make wiser choices when purchasing jewellery and ensures that you understand what you are paying for. 

Now, when you buy gold jewellery, you will know how the price is calculated, from the daily gold rate to the gold making charge per gram. By staying informed and comparing prices, you can make confident decisions and invest in jewellery that truly reflect both value and craftsmanship. Understanding these details allows you to appreciate the true value of every piece you own.

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Among various forms, the 24-karat gold of 99.9% gold is the purest followed by 22K, 18K and 14K gold in decreasing purity.  24K: Pure gold, or 99.9% pure. 22K: 91.6% pure, often seen in jewellery. 18K: 75% pure, popular for durability. 14K: 58.5% pure, common in affordable jewellery. 10K: 41.7% pure, used for everyday jewellery. 2. Fineness Fineness measures gold purity on a scale of 1,000. You may have heard the term ‘916 gold’ at some point in your life. It indicates the purity of 22K gold, while 999 refers to 24K gold. This measurement is commonly used to represent the purity of gold in international markets.  3. Gold Alloys The adornments that we wear is not 100% gold, it is a mix of alloys such as copper, silver or nickel. Besides, pure gold (24K) is very soft, so alloys are added to make it suitable for jewellery and everyday use. Also, the gold purity depends on the gold ratio in the composition. For example, 18K rose gold is 75% gold, mixed with the right proportion of copper and silver. Also Read : How to Check Hallmark on Gold Jewellery Methods to Check Gold Purity 1. BIS Hallmarks In India, there are certain criteria that need to be met when you buy jewellery. The BIS hallmark is a certification issued by the Bureau of Indian Standards (BIS) to verify the purity of gold and silver jewellery. Reputable jewellery brands across the country typically stock only BIS-hallmarked jewellery to ensure purity and authenticity. It features three distinct marks namely BIS logo, Purity/Fineness grade and Hallmark Unique Identification(HUID). If you identify all three hallmarks on the jewellery you purchase, then you can confidently buy it. 2. Acid Test The acid test in jewellery is a traditional method used to check the purity of gold. The process involves applying drops of specific acids such as nitric acid on to the gold and observing the changes that occur upon adding them. If there is no reaction, the gold is of the claimed karat; but if the color changes or a reaction occurs, it indicates that the gold is less pure or mixed with other metals 3. Magnetic Test The magnetic test is the simplest method to identify whether a gold is real or fake. Gold is a non-metallic element. Therefore, when a magnet is placed near it, gold does not respond to a magnet. And if it is attracted to a magnet, it is a clear indication that the jewellery contains other metals, particularly magnetic ones, mixed with gold. 4. Density Test Because gold has a high density, its purity can be ascertained by measuring its weight and volume. After weighing the gold, measure its displacement by immersing it in water. To find the density, divide the weight by the volume. Pure gold is suggested by a density of around 19.3 grams per cubic centimeter. 5. X-Ray Fluorescence (XRF) Test This test uses X-Rays to measure the proportion of metals in the gold. It is a common method followed by professionals in the jewellery business. 6. Electronic Gold Testing Electronic testers use electronic conductivity to determine the gold purity of the jewellery. It provides a fast, reliable and accurate assessment of an item's karat value while also verifying whether it is made of gold or just a gold-plated imitation.   7. Ultrasonic Testing Ultrasonic testing employs sound waves to assess the density and structure of gold, helping jewelers identify counterfeit or hollow pieces. 8. Fire Assay Method This is a traditional method to identify the gold purity which involves melting the gold sample and separating it from impurities to precisely measure its purity.  Best Practices for Verifying Gold Purity There are several hacks to examine how to check gold purity. Start by checking for a hallmark or BIS stamp which provides assurance of authenticity and opt for other testing such as acid test or density check to further validate the gold purity check. However, a quick and easy approach to test gold at home is to purchase a tiny gold purity tester which can confirm its authenticity. Also, having an understanding of the carat values such as the 22 carat gold purity or 24 carat gold purity percentage, can provide insights about the purity level of the jewellery and be helpful in making informed decisions. For the most reliable results and to avoid any risk of damaging your jewellery, it is wise to seek professional help and ensure damage-free purity testing results. Conclusion Determining the gold purity of the jewellery is as important as preserving the quality of your collection. Therefore, understanding how to verify gold purity is a key aspect even if you are purchasing, selling or ensuring your jewellery is genuine. Applying any of the above mentioned techniques can prove beneficial in the long run and help you stay mindful of the potential challenges. At Jos Alukkas, we surpass merely offering exceptional designs by ensuring every product we offer carries all the necessary certifications, is tested, and verified before being dispatched to our customers. Our certified jewellery collection reflects our commitment to excellence, authenticity and trust.
October 6, 2025