Article /
News and Blogs /
Blog
Top Five Major Factors That Determine The Price of Gold In India |
The Indian gold market is amongst the highest grossing
ones. The industry witnesses a surge in purchase, especially when it comes to
festivities and marriage. As the wedding season sets in, demand for gold is on
the rise.
However, many of us, when visiting the local jeweler shops in our areas, do not
bargain much. It is important to understand that in this scenario, the price
varies from jeweler to jeweler due to many factors. The final amount includes
the price of gold, gems, making charges and more. Since the Indian jewelry
market lacks a standard billing pattern, the prices differ.
Various names in the gold industry, such as Kalyan Jewelers, Shubh Jewelers by
Rajesh Exports, Tanishq Jewelers, Malabar Gold and Diamonds, are some of the key
companies that are helping the Indian market expand.
Following are some of the aspects you should know when buying gold.
The calculation that goes behind the cost of gold you buy
A standard formula which defines the cost of the gold jewelry is:
Final price of the jewelry = Price of 22 KT gold X (weight in grams) + Making
charges + GST at 3 percent on (price of jewelry + making charges)
With this formula in place, it is easy to understand if the jeweler is charging
you the right amount. It is crucial to understand that the big and established
names like Malabar, Rajesh Exports, etc, provide gold at the same rate
throughout their stores.
Purity of gold
Purity of gold is measured in carats, with 24 carat being the purest form.
However, 24 carat gold is malleable and cannot be used to make jewelry. Instead,
22 carat gold, which constitutes of 91.6 per cent gold, along with metals like
zinc, silver, cadmium, etc., to strengthen it, is used.
Studded jewelry
When you buy jewelry studded with stones, make sure you ask the jeweler to check
the weight of gold separately. Many a times, the jeweler weighs the entire piece
and charges the customer a much higher price. Initially, you might not be able
to gauge the damage done, but when you sell it, the real picture comes to life.
The money you will receive in exchange will nowhere be equal to what you
invested.
It is both the amount of gold and the gemstones used that determine the price of
the jewelry. Also, the gold rate fluctuates everyday according to the demand and
supply in the market.
BIS Standard Hallmark
Hallmark is in itself a certificate of purity for gold jewelry. The Bureau of
Indian Standards (BIS) gives the hallmark certification, and you can use this
information to identify if the jewelry you are buying is original or not.
The jewelry by various major chains in India such as Shubh Jewelers, which has
more than 80 stores in Bangalore; Kalyan Jewelers, Tanishq Jewelry is hallmarked
and thus, you can rely on the pieces that you purchase from them.
Making charges
The intricacy of a piece defines the making charges. The more the number of
cuts, and better the finish, the higher will be the making charges.
However, there are various jewelers who do not incorporate the making charges.
For instance, Shubh Jewelers, the retail chain of Rajesh Exports, headed by CEO
Rajesh Mehta & Rajesh Exports MD, Prashant Mehta, does not include making
charges in their jewelry.
With the details in place, you can use it to make sure you do not fall for fake
jewelry and never agree to pay more than the value it holds.
TAGS:
Price of Gold In India,
Factors that determine the Gold price in India,
WHATSAPP