How Gold Price is Calculated: Dhanteras is coming. Many people buy gold on this occasion. It has a tradition. However, they are also confused about the price of gold, why the price of the same weight jewellery is different everywhere. For example, if you liked any jewellery of 10 grams and if you know the prices in many markets about it, then they get different prices. In such a situation, you must know how their prices are fixed, because when you are going to sell it in an adverse situation, you will be able to estimate how much it will get. Based on this, you will be able to take the right decision.
Price is not decided only by the price of gold
The price of jewellery is not just determined by the price of gold, but more factors work in it. Financial Express talked to Vinod Mutha of Mutha Jewelers about this. They gave information about how they decide the price of these jewels.
- Suppose you liked a gold chain. Suppose its weight is 12 grams.
- Gold is applied on the basis of how much purity of gold is put in that jewellery. The purest gold is of 24 carats but its jewellery is not made. So let’s assume that the chain you liked has 22-carat gold in it.
- The price of 22-carat gold is around Rs 51500 per 10 grams.
- Now you find the value of the chain you like. That would be around Rs 61,800.
- After this, add the charge of how hard it took to make this chain. It depends on how its design is. It can range from 2 per cent to 20 per cent. Let’s say the making charge on the design of the chain you liked is sitting at 10 per cent, now the value of the chain has become 67,980 (61,800 + 61,800 * 10%). One more thing, no guidelines have been issued by the government regarding the making charge, the goldsmiths decide it according to their cost.
- After this GST will also have to be given on this, which is 3 per cent. This means you will have to pay around Rs 70109.4 (67,980 * 3%) for the 12 grams of the favourite chain.
Keep in mind while buying jewellery
When you buy such gold ornaments which have gemstones, care should be taken in buying them. The biggest reason for this is that the price of the gem also has to be equal to that of gold. However, when we go to sell our jewellery back to the goldsmith, the gold is removed and the remaining gold is applied.
How much money do I get for selling back
If you sell your jewellery back to goldsmith during an economic crisis, you do not get the same amount. You get money by cutting 30-40 per cent of the gold. The biggest reason for this is that the goldsmith charges you as a making charge to make that jewel as any other jewel.