How Gold Jewellery Price Is Calculated
The price of a gold necklace is not just today’s gold rate multiplied by its weight. Here is every part of a jewellery bill, so you know exactly what you are paying for.
The basic formula
Price = Gold value + Wastage (VA) + Making charges + Stone value + 3% GST
- Gold value = net gold weight × today’s rate per gram for that purity
- Wastage or VA (value addition) = a percentage of the gold value
- Making charges = usually a rate per gram, or a fixed amount
- Stone value = diamonds, polki, rubies, emeralds and other stones, charged separately
- GST = 3% on the total
Gross weight vs net weight
Gross weight is the full weight of the piece. Net weight is the weight of gold only, after removing the weight of stones, beads or wax. Gold value should always be calculated on net weight. Check that both are written on your bill.
What is wastage (VA)?
When a karigar makes jewellery, a small amount of gold is lost in cutting, filing and polishing. Wastage, also called VA or value addition, covers this loss. It is charged as a percentage of the gold value and depends on the design. Intricate handmade pieces usually carry higher wastage than simple machine-made chains.
What are making charges?
Making charges pay for the craftsmanship. They are usually quoted per gram, sometimes as a flat amount per piece. Some jewellers combine wastage and making into one VA percentage. Ask how your jeweller charges so you can compare fairly.
A worked example
These numbers are only an example to show the method. Use today’s live rate on our homepage for real prices.
| Item | Amount |
|---|---|
| 22K chain, net weight 10 g × ₹13,500 per gram | ₹1,35,000 |
| Wastage 10% of gold value | ₹13,500 |
| Making charges ₹300 per gram × 10 g | ₹3,000 |
| Stone value | ₹0 |
| Subtotal | ₹1,51,500 |
| GST 3% | ₹4,545 |
| Total | ₹1,56,045 |
Questions to ask before you pay
- What is the net gold weight, and what is the stone weight?
- Which purity is it, and is it hallmarked with HUID?
- What rate per gram are you using today?
- What is the wastage percentage and the making charge?
- How are the stones valued?
At Sri Darshan Gold we explain each of these line by line before billing. With our SDG Gold Re:New scheme and our gold savings scheme, you pay 0% making charges and 0% wastage on the new jewellery (conditions apply).
Questions people ask
Is wastage charged on the full weight?
Wastage is usually charged as a percentage of the gold value, which is based on net gold weight.
How much GST is charged on gold jewellery?
GST on gold jewellery in India is 3%.
Why do two shops quote different prices for the same weight?
Gold rates, wastage percentages, making charges and stone values differ between jewellers. Compare all of them, not just the gold rate.
Visit Sri Darshan Gold, Somajiguda
Vista Grand Tower, 4th Floor, Somajiguda, Hyderabad. Open every day, 10:30 am to 7:30 pm. Our team explains purity, weight and every charge line by line before you buy.
Ask us on WhatsApp See today’s gold rateTurn your old gold into something new.
Give your old gold today. After 6 months, redeem it for new jewellery.
*Conditions apply
Pay 11 months. Get jewellery with no making charges.
Every monthly payment turns into gold at that day’s rate. In the 12th month, take your jewellery with zero making charges and zero wastage.
Your budget, our jewellery.
Tell us how much you want to spend and what you have in mind. We design a piece that fits your budget, in 22K, 18K, 14K or 9K gold.