Gold Prices In Big Cities Fall By Rs 27,200 In 2 Days; How Does Gold Making Charges Impact Price Of Jewellery?
Gold prices in India extended their downfall with 24K gold in 100 grams falling by Rs 9,800 on Saturday, April 5. The same 100 grams has plunged by a massive Rs 27,200 in two consecutive days now.
The profit booking in gold is because of yellow metals consistently breaking new records in most days of April. Although the price of gold is down, there are other factors that impact buying gold jewellery. One of them is making charges!
Gold Prices In India:
24K gold price dropped by Rs 9,800 to Rs 9,06,600 in 100 grams, while 10 grams gold is down by Rs 980 to Rs 90,660. Meanwhile, 100 grams and 10 grams of gold are down by Rs 7,400 and Rs 740 on Saturday in 18K to Rs 6,79,900 and Rs 67,990 respectively.
22K gold price is at Rs 8,31,000 in 100 grams, down by Rs 9,000, and that of 10 grams gold price has plunged by Rs 900 to Rs 83,100.
Gold Prices In Big Cities:
Gold Prices In Chennai:
24K gold price is at Rs 90,660 per 10 grams, while 22K and 18K gold prices are at Rs 83,100 and Rs 68,450.
Gold Prices In MumbaiGold Prices In KolkataGold Prices In BangaloreGold Prices In HyderabadGold Prices In Kerala and Gold Prices In Pune:
18K gold price is at Rs 67,990 per 10 grams. On the other hand, gold prices are at Rs 83,100 and Rs 90,660 per 10 grams in 22K and 24K.
Gold Prices In Delhi:
In the national hub, gold price is at Rs 90,810 per 10 grams in 24K, Rs 83,250 per 10 grams in 22K, and Rs 67,990 per 10 grams in 18 K.
Gold Prices In AhmedabadGold Prices In Vadodara:
In these two cities, gold price is at Rs 90,710 per 10 grams in 24K, at Rs 68,040 per 10 grams in 18K, and at Rs 83,150 per 10 grams in Ahmedabad.
Gold Price Outlook:
Gold is seen to be a natural beneficiary of Trump’s reciprocal tariff, since it will create trade war concerns, and demand for safe haven is high in uncertainties.
Elara Capital is bullish on Gold. The brokerage said, “We do not rule out some near-term profit booking if hints on tariff negotiation/leniency emerge but given structural factors – High US fiscal deficit, elevated policy uncertainty, and central banks’ demand – the bull case for gold stays. Gold’s safety demand is now complemented by outperformance vs equities CYTD; thus, emerging as a strong capital enhancing along with haven instrument.”
Gold Making Charges:
Here’s How Gold Making Charges Will Impact Your Gold Jewellery Prices:
Formula To Calculate Gold Jewellery Prices:
Gold Jewellery Purchase Price = Gold rate x weight of gold in grams + Making charges + GST.
CaratLane’s website gives an example:
If your jeweller quotes Rs. 47,300 for ten gms of 22K gold, and if you are buying a gold bangle that weighs nine grams, the jeweller will calculate the price of the item by:
Rate of 1gm of gold = 4730
Price of the bangle weighing 9 gms = 4730 * 9 = 42,570.00
Making charges = 8% of 42,570 = 3405.60
Total price = 45,975.6
GST (calculated on total price) = 3% of 45,975.6 = 1379.00
Total billing amount is 42,570 + 3405.6 + 1379 = Rs. 47,354.6
Notably, the price of gold prices are driven by the demand and supply globally, currency fluctuations and geopolitical events. However, gold prices in the market are just one key component to decide the final value of physical gold that is available at jewellery stores.
Apart from gold price trends, the second most important factor is making charges which is decided by the companies and based upon a host of criteria. Other factors are GST, weight, size and design type.
How Gold Making Charges Impact Gold Price? Gold-making charges refer to the rates jewellers charge for the processing of gold to turn it into jewellery. These charges are caused because of the labour of the artisan and other overheads in changing raw gold bars into fine ornaments, as per Aditya Birla Capital’s website.
Currently, in India, charges range from 5% to 30% depending upon the brands. Formula for calculating making charges are — Total Cost = (Gold Weight × Present Gold Rate) + (Gold Weight × Making Charge per Gram) + Wastage Charges
Factors To Consider Before Buying Gold? As per CaratLane’s blog, One of the factors that you must be aware of is that the price of gold will depend on the quality and location. First, the price of gold varies in terms of quality as there are different grades ranging from 9K to 24K. If the gold is of higher karats, the gold will cost more.
CaratLane highlighted that there are two ways the jeweller can calculate the marking charges. One way is to have a fixed rate per gram, and the other is to add a specific percentage of the total weight of the item. You may be able to save some money if you buy the jewellery that levies low making charges. If the jeweller is using the latter method, you can save even more money with them if you are looking to exchange old jewellery for new.
