How to Calculate Gold Making Charges?

Gold Investment
1

I want to know about gold making charges and how do jewellers calculate it? Is there a formula I can refer to?

2

Making charges are nothing but the cost of crafting raw gold into finished jewellery. Since every design requires labour and skill, jewellers add these charges on top of the gold value. You usually see this calculated in two ways.

  • Percentage of Gold Value: Most jewellers apply a rate of the gold’s worth. For example, if the gold price is ₹5,000 per gram, a 20% making charge adds ₹1,000 for every gram.
  • Fixed Rate Per Gram: Some jewellers keep it simple and charge a fixed rate per gram regardless of design.

I also learnt to ask for a breakdown of the bill. A transparent bill clearly shows gold weight, current market rate, making charges, and GST. Once you see the numbers, it is easier to decide whether the design is worth the total cost.

Over time, I realised that bargaining works too. Many jewellers reduce the percentage if you ask, especially during festive sales.