In our country the most common way of buying gold is through jewellery. Indians buy it for various occasions and purposes. Our tradition promotes gold jewellery, making it an item of status. While this, we also find that prices vary from place to place. Apart from this, people also purchase gold in the form of investment. It has always been profitable to invest in gold as price increases with time and we find profit in gold.
Gold is the common wealth of people in our country. The gold market is more transparent than others and its price is more stable too. But it doesn’t have a unique exchange rate. In fact, there are no fixed ratios between their prices of gold and silver or that between gold and currency in India. Here we’re going to discover how gold rate calculation works!
How to Determine the Price of Gold?
Final price of the jewellery = price of (22 ct or 18 ct) gold X (Weight in grams) + making charges + GST on (Price of jewellery + making charges).
The gold rate calculation formula is the one that is used by jewellers to calculate the total gold prices. While using this formula in order to calculate the price of gold, there are many other factors that need to be considered like purity and GST charges.
People in India buy and sell gold. They use the formulas to determine how much money they should get in return for their old jewellery. Gold dealers (pandas) will give us the price of new jewellery made from our old items.
How Do Jewellers Calculate Gold Jewellery Rates?
The price of gold as per the formula is calculated by taking a purity percentage, weight and adding GST. However, jewellers differ in charging rates and make it a challenge for customers to find an honest jeweller that charges a reasonable price.
Final price of the jewellery = Price of (22 ct or 18 ct) gold X (Weight in grams) + Making charges + GST on (Price of jewellery + making charges).
Jewellery is always a good investment. But the number of factors that affect the price of gold, like purity and mixed metal price, makes it hard to get the exact cost of gold. Muthoot GoldPoint helps you buy and resell your jewellery with ease by offering safe, secure ways to buy or sell gold at competitive rates.
Factors Affecting Gold Rate Calculation
When you buy gold jewellery, one usually asks about the carat. The purity of gold is measured in a term called carats. When it comes to jewellery, 24 carat gold is the purest form. However, this kind of purity is not suitable for making jewellery so we use 22 carats of gold instead. The addition or other metals like silver, zinc and copper is what determines the colour and shine of the gold with its durability.
2. Gold Pricing:
Gold jewelry is popular today because it looks good and can be worn daily. Jewellers use purity and types of metals, due to different reasons that may include their own personal experience, or information they have been given by other jewellers. These are the only two main factors determining price. Gold jewellery price today are announced in the newspapers and websites, and gold is traded daily.
3. Making Charges:
Making charges are a significant part of the total cost of the jewellery, and affect the gold rate calculation. Making charges vary for every customer, depending on the bargaining power he possesses. The making charges are set by different jewellers and can differ from place to place. Some jewellers charge fixed rates for making, whereas others charge percentages of their total cost as making charges. If a customer wishes to buy a diamond studded ring, he may find that the making charges vary from 1% to 10%, depending on which jeweller he selects.
4. Studded Jewellery:
Nowadays, studded jewellery of gold is the trend. For highlighting and glittering, people fix gems in the gold jewellery. When we purchase it, our profit will differ if we take the price as per the weight. It is better to be aware of the cost in that case if we purchase them and resell them later. We get a loss on it. You need to deduct the price of the stone, gem or any affixed item in jewellery from the total price so that you can find out what is actual gold price
The gold rate is calculated in different ways. The main factor affecting the gold price today in Vijayawada is purity of the metal. This means that if a purer grade of gold is used in jewellery, then it will cost higher than the one with impure gold. For example, 22 carat gold is considered to be pure whereas 18 carat gold does have impurities. However, mixed alloys do not affect the price much as per its ratio. In determining the gold rate, you must get your jewellery weighed in grams so that you know how much pure gold costs or how much impure gold costs per gram of jewellery that you want to purchase.