Simplifying gold purchases: A look into making and wastage charges

Trivia 05 Sep 2017

Gold jewellery sets the tone for major occasions such as festivals, weddings, birthdays, and other such occasions. When we set out to buy gold jewellery, there are quite a few things that we need to consider. Here is everything you need to know about making charges and why they are important!

Making Charges

- Definition

Making charge includes the cost of the process involved in producing and designing the gold jewellery in question. The conversion of raw gold into a piece of jewellery is what brings about such a charge. So, this is usually the labour that goes into creating that piece of jewellery.
 

- Calculation

There are different ways of computing these charges.
Some jewellers offer fixed making charges if you shop in bulk . You could avail this benefit in case of large purchases on special occasions such as weddings or any of these auspicious days to buy gold.  

Usually, however, the making charges range from 3% to 25% for mass market machine-made jewellery such as chains.
These charges could go up to almost 25% in case of very intricate designs that require skilled craftsmanship , such as temple jewellery .
Studded jewellery pieces usually involve very intricate work and thus you would incur higher making charges than pure gold jewellery. However, you can bargain with the jeweller to get a 5% to 10% discount on such charges.

Wastage Charges

The creation of gold jewellery including melting, cutting, and shaping gold. This leads to some amount of wastage as the perfect pieces are joined together for a single piece of well-designed jewellery. The concept of wastage charges originated because jewellers used their hands, but even modern machine-made jewellery has a wastage charge component. Pieces that are embellished with stones will usually cause a little more wastage than plainer pieces like gold bands. Hence, the charges differ accordingly. Wastage charges range anywhere between 5-7%.

The next time you are buying gold jewellery, follow these steps to make gold buying a fool-proof process.

 
Sources:

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Gold Glossary

Sovereign Gold Bond

Sovereign Gold Bonds are issued by the Reserve Bank of India on behalf of the Government of India. As investors get returns that are linked to gold price, the scheme offers the same benefits as physical gold. They can be used as collateral for loans and can be sold or traded on stock exchanges.

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