Once you see the three parts of a jewellery price, quotes become easy to compare.
Last reviewed: 13 November 2026
Almost every gold jewellery price is built from the same three parts, even if the shop does not show them separately. The first is the value of the gold itself. The second is the making charge, which pays for design, labour and wastage. The third is tax. Knowing the parts lets you test a quote, compare two shops, and see where a negotiation can help.
The gold value is the weight of the piece, times its purity, times the price of pure gold. Purity is the karat divided by 24. For a 22K piece, that is 22 ÷ 24, or 0.9167. The price of pure gold per gram is the international price per troy ounce divided by 31.1035, converted to your currency. Our country pages show this live.
Shops use their own daily rate for each karat, often written on a board. It should be close to the live market value for that karat. If a shop's rate for a karat is well above the calculated value, ask what is included, since a few shops build a margin into the rate.
The making charge, sometimes called labour or wastage, covers the cost of turning gold into a finished item. It varies a great deal. It can be quoted as a percentage of the gold value, or as a fixed amount per gram, or as a flat fee for a piece. Simple chains and plain bangles tend to carry low charges. Handmade, intricate or branded designs carry higher ones. Some shops also include "wastage," the small amount of gold lost during crafting, as a separate percentage.
Making charges are the most negotiable part of the price. Shops sometimes reduce them for large purchases, for returning customers, or during promotions. They are also the part you will generally not recover if you later sell the piece, because a buyer pays for gold weight and purity, not for craftsmanship.
Many countries charge VAT, GST or sales tax on jewellery, and the rule differs by place. In many systems the tax applies to the gold value plus the making charge. Some countries tax jewellery and investment bullion differently, and import duty also affects what a jeweller pays for gold. Because of this, the same piece can cost different amounts in two countries even when the gold price is identical. Check the rate that applies where you are buying.
Suppose a bangle weighs 10 grams, is 22K, and the price of 24K gold is 100 per gram in your currency. The making charge is 8% and tax is 5%.
| Step | Working | Amount |
|---|---|---|
| Pure gold content | 10 g × 22 ÷ 24 | 9.167 g |
| Gold value | 9.167 g × 100 | 916.67 |
| Making charge | 8% of 916.67 | 73.33 |
| Subtotal | 916.67 + 73.33 | 990.00 |
| Tax | 5% of 990.00 | 49.50 |
| Total | 990.00 + 49.50 | 1,039.50 |
The numbers are only an example. You can enter your own weight, karat, making charge and tax in the jewellery price calculator and get the same breakdown at today's live price.
A common surprise is how much less a piece sells for than it cost. When you buy, you pay gold, making charge and tax. When you sell, a buyer usually pays for the gold only, at or slightly below the live rate, after testing and sometimes a deduction. This is the reason many people who buy gold mainly as savings prefer bars and coins, which have smaller premiums. If you want jewellery, think of the making charge as the price of the design and wear, not as part of the investment.
Usually not. A buyer normally pays for the weight and purity of the gold, not for the craftsmanship. Some shops offer exchange schemes with a reduced deduction, so ask about the terms before you buy.
Shops set their rate at certain times of day, round it, and may include a small margin or local factors. A small difference is normal. If the gap is large, ask what it covers and compare with the live value on our gold calculator.
No. Stones, pearls and enamel are priced separately and weighed out of the gold weight. Check that the invoice lists the gold weight and the stone value on separate lines.
Often, yes. The making charge is the most negotiable part, particularly on larger purchases. The gold value itself follows the market and rarely moves.
