Whats in your Jewelry bills - Making Charges, Wastage...

With gold prices dropping a bit, buyers would look for Gold as a good investment option. However, buying Gold as Jewels is not a recommended one as an investment point of view when compared with Gold Coins, Bars, ETFs. This is because Gold Jewels draw additional costs in the likes of Wastage, Making charges etc and you end up losing money while venturing into short term trading. So, whats actually in your Gold Jewellery bills. Besides the gram rate, you would find Wastage charges, Making charges, Stone charges, Valued Added Tax (VAT) added to price of the Jewelry.

Wastage - While making gold jewels, some percentage of Gold is lost, hence Jewelleries charge the lost gold and it ranges between 10% to 35% based on the complexity of making the jewel. Although, the gold smith would take extra care not to loose gold, but the wastage charge is still passed on to the buyers.

Making Charge - The craftsmanship is a separate component included in the price tag

Stone Charge - Jewels with embedded stones would have the stone charge

Value Added Tax (VAT) - For gold, silver ornaments 1% of the total price is charged

Srikanth Ramu

Gold prices are dropping

There seems to be some respite for the yellow metal buyers as gold prices were cooling a bit. For the past few days, the market witnessed a downward trend in gold rates. In the internaltional market the rates for per ounce of gold dropped to $1120 (approx.) from $1160 (approx.) at the start of the week (7/Dec/2009). In Chennai market too, there is a drop of close to Rs: 80 - Rs:90 in the gold prices for 22 Ct 1gm. The current rate is at the range of Rs:1580 which was prevalant during second week November 2009.

Please note the rates mentioned here are based on MJMDA, however the prices at Jewlery marts might be slightly different.

Srikanth Ramu

November 2009 Gold Price update

The increasing trend in gold prices in October continued during November as well. For instance, if you had bought a gold coin during fist week of November 2009, by November end you would have gained close to 11%. That's the appreciation gold has got during 4 weeks.

Lets take the global gold price trends for November 2009. During the first week of November gold prices in dollars for 1 ounce was close to $1060, however, by the end of November the gold rates were hovering around $1180, an increase of about $120. For more details refer the Kitco chart.

In the Chennai market too the scenario was no different. During November, the minimum price for 1 gram of gold in Chennai was Rs:1505 and it shot up to Rs:1683. For more details on the pricing at Chennai refer mjdma.com.

Srikanth Ramu