The Scam to be Aware of
A jeweler will quote you ₹1.5 lakh for a bracelet saying it is 22-karat gold.
The customer will check the hallmark and it will say “750.” That is 18-karat gold, not 22-karat. 750 means it is 75% pure gold.
How to Work Out the Real Price of Gold Itself
To work out the real price of gold yourself you need to follow these steps:
Step 1: Find the percentage of pure gold in the karat. To do this you multiply the karat by 0.22.
Step 2: Go to Trusted sites or another similar website to check what the 24K gold rate is today.
Step 3: Work out the value of the gold by multiplying the rate from step 2 by the percentage from step 1.
What Determines the Additional Charges
GST: 3% of the value of the gold.
Making/Wastage Charges: Varies by jeweler. Can be charged per gram or a percentage of the value of the gold, sometimes a combination of both. Some jewellers charge 1% of the current price per gram, others charge up to 20-25% of the current price per gram.
Why Do Prices of Gold Differ Between Cities?
Each city has a gold association that sets prices for gold every day based on the costs to transport gold, the overall performance of the market, and the demand and supply for gold. Because of this, the same weight of gold can cost more in Mumbai than in Delhi.
A good trick is to check the BIS hallmark and HUID on the jewelry before buying to confirm the actual carat.
This is the complete formula he is teaching. Multiply the carat by 0.22 to get the purity percentage, then add 24K rate, GST and making charges.
