Gold Price Calculator – Know the Real Cost of Your Jewellery
Gold is more than just a metal in India; it's an emotion, a tradition, and a safety net. However, the excitement of buying jewellery often fades when you see the final bill, loaded with hidden charges and confusing calculations.
Our Gold Price Calculator is your personal shopping assistant. It breaks down the cost of your jewellery into clear components—metal value, making charges, and GST—so you know exactly what you are paying for. No more surprises at the billing counter.
Understanding Your Gold Bill
Don't let the glitter blind you. Here is what actually goes into the price of that necklace or ring:
Purity Matters
Gold is sold in Karats (K). 24K is pure gold, but jewellery is made of 22K (91.6% pure) or 18K (75% pure). Ensure you are paying the rate corresponding to the purity of the item.
Making Charges (Wastage)
This is the labor cost for crafting the design. It is often expressed as a percentage of the gold weight. Intricate designs command higher making charges.
GST Impact
A flat 3% Goods and Services Tax (GST) is applicable on the total value of the jewellery. This is a mandatory government levy.
Stone Deductions
When exchanging or selling old jewellery, stones (like rubies or emeralds) are often valued at zero or a fraction of their cost. Be aware of this depreciation.
Frequently Asked Questions (FAQs)
What is Hallmark gold?
Hallmarking is a certification of purity by the Bureau of Indian Standards (BIS). A Hallmarked piece will have a laser inscription detailing the purity (e.g., 22K916), the assay center's mark, and the jeweler's ID. Always buy Hallmarked gold for guaranteed purity.
Why is there a difference in buying and selling rates?
Jewelers sell at a higher rate (including their margin) and buy back at a slightly lower rate. Additionally, when you sell, you lose the making charges and GST paid during the purchase, which is why gold jewellery is often considered a consumption item rather than a pure investment.
How are stone weights calculated?
The weight of precious stones and gems should be deducted from the total gross weight to arrive at the net gold weight. You should only pay for the net gold weight at the prevailing gold rate. Stones are charged separately.
What is 18K gold used for?
18K gold contains 75% gold and 25% other metals like copper or silver. It is harder than 22K gold, making it ideal for diamond and stone-studded jewellery where the metal needs to hold the gems securely.
Can I buy gold coins instead of jewellery?
Yes, if your primary goal is investment, gold coins or bars (24K) are better as they have lower making charges compared to jewellery. Alternatively, Sovereign Gold Bonds (SGBs) are the best for pure investment as they offer interest and tax benefits.