Sunday, December 27, 2009

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

1 comment:

  1. Not even 2 months have past , i had purchased the golden bangles and along with the bill. Here the jewellery is covered with all the charges of gold, making charges ,VAT and other charges. Just after 20 days the design got detached and now i am suffering with total lost of money, because the jeweller is not ready to exchange the jewellery with any other jewel of same charge and same grams of gold, he is asking for the making charges of other golden ornament from me and i dont want to give a single pie,because not even 2 months have past for the purchase. So i am in total loss,and dont uderstand what to do?