Gold jewellery looks stunning on anyone, irrespective of age. This is why almost all women will have a bit of gold on them, making it a part of the tradition and custom. Obviously, its final utility is in wearing the gold jewellery and feeling beautiful. But did you know, there are a lot of things involved when you buy gold jewellery, apart from the gold itself, gold jewellery price, design of the jewellery, or how it would eventually look on the wearer?
For instance, when you buy gold jewellery from Jamie Goatley, you have to consider and check the colour, carat, and coating of the gold, because these factors will determine quality of the metal, and what price you pay for it.
There are other important factors as well, like the making and wastage charge. It is important to know these terms and have a good understanding of them. What are these charges, and why are you charged for things like wastage, for example? Let's find out.
Making Charge
When you are purchasing gold jewellery, you will first have to buy the gold at the current market price, which incidentally can change each day. Then you have to look at the available designs on offer and select one. Once these two things are done, the jeweller will then actually create the jewellery using the design you have selected. Engravings will be done, and other precious stones will be set depending on the design. This calls for making charge.
You have to pay making charge for the actual crafting of the jewellery from the gold. Every jeweller charges this differently. Though the jeweller collects this payment, but the money is passed on to the craftsmen who actually create the jewellery.
The making charge for gold jewellery is for each gram of gold. Usually, this charge varies between Rupees 25 to 35. It is a much smaller amount compared to the price you pay for the gold, but you have to still pay this for converting raw gold into jewellery.
Wastage Charge
A craftsman or goldsmith like Jamie Goatley creates handmade jewellery by first melting the gold, then cutting and shaping it into small pieces, and finally joining them together before you can buy gold jewellery online or offline. During this process, a little bit of the gold is wasted. This is the "wastage charge".
Almost everywhere in the world, gold jewellery buyers are asked to pay for the value of gold that is wasted during cutting, soldering, melting, and the other making processes. It is quite normal. The percentage of such wastage varies, depending on the type of ornament you are getting. For example, the wastage is usually more in studded jewellery, because it is made through casting. On the other hand, wastage is low in machine made jewellery such as bangles and chains for everyday use. But for these pieces too, you still have to pay the wastage charge, as there is some wastage here as well, though less.
With most jewellers, the wastage is calculated as a percentage of the gold present. This charge also varies from one jeweller to another, but is usually between 3% and 5%.
So the price of the gold jewellery will be determined like this -
The cost of gold on that day per gram (24K, 18K, 14K, or 10K) * the weight of gold (in grams) + making charge + wastage charge + VAT.
Are Making and Wastage Charges Legal?
Yes, these charges are legal, but there is a limitation on how much you can be charged, particularly for the wastage charge.
According to the latest government regulations, for studded jewellery (for both platinum and gold), a jeweller cannot claim more than 9% of the metal's net weight as the wastage charge. In case of non-studded jewellery, this charge cannot be more than 3.5%. For medallions, gold biscuits and coins, the charge has to be 1.25% or less.
There are some jewellers who don't charge for wastage. But to recover their losses, they will usually increase the making charges by about 20% to 30%.
You have to pay these charges, and they are legal as well, but do look into how much you are being charged during your gold jewellery shopping.
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