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
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