How Jewelers Calculate The Price Of Gold Jewelry

Gold is one of the most cherished precious metals all across the world. Both men and women are fond of wearing this metal jewelry. To buy a gold jewelry, it is important to learn about the latest making charges in jewelry. There are a few factors that determine the jewelry price that is charged by a jeweler.


When considering gold jewelry online shopping India, Karat is a unit that measures the gold purity. A gold piece that has 24Karat is considered to be pure gold. It is very soft and can easily be casted into any shape to form jewelry. Metals such as silver, copper, cadmium etc. are added into it to make it radiant and strong with the desired shade.

Depending on the extent of addition of extra metals in the gold, its Karat value can reduce from 24 Karat to 22 Karat, 18 Karat, 14 Karat or 10 Karat. For making gold jewelry, 18Karat gold is 75% pure. 22Karat gold is considered to be the most significant for making jewelry. It has 91.6% purity.

Understand making charges

To understand making charges for gold jewelry, you must know that certain metals are added to a pure gold piece to make it sturdier and tougher. This addition of gold jewelry makes it strong enough to mold it into any shape. This is 1st level of cost that increases the actual price of gold.

Making charges depends on the level of artistic work and skill required to give beautiful patterns to your gold jewelry. This charge is expressed in the form of rupees/gm. It is the actual cost that is incurred to convert raw form of gold into jewelry.

The basic formula for calculation of a 1 gram gold jewelry is:

Price of (22Karat or 18Karat) gold X (Wt in grams + wastage) + VAT + making charges.

Understanding gold wastage

When calculating the price of gold jewelry designs with price and weight, you need to consider its wastage too. The process of jewelry making involves different processes like smelting, shaping, cutting, embossing the gems, and joining. While the gold metal is subjected through these processes by the goldsmiths, a certain percentage of gold will be wasted. Jewelry that is made for daily wear use such as bangles and chains lead to less wastage.

Studded jewelry is crafted with the help of casting method that results in a high wastage of gold. This gold is not completely wasted. Goldsmiths will collect or retrieve a lot of this wasted gold to reduce the actual wastage!

‘Wastage’ is mostly expressed by traditional jeweler as a cost. This cost is referred to as ‘percentage’. This wastage charge varies from 3% – 35% with most of the Indian traditional jewelers. Along with this, if your jewelry has got any valuable pearls or precious stones in it, then it will cost more.


These are the factors that would help in getting a better understanding of gold making charges and wastage.

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