India and gold are decades-old companions. From popularly holding the title of ‘Sone Ki Chidiya’ before Independence, India has now become one of the top 3 largest consumers of gold jewellery in the world. Gold is a best friend when it comes to uncertainty such as high inflation, geopolitical tensions, trade wars, and economic conundrum. In short, gold is a safe haven. Currently, gold prices are at a record high due to global uncertainties. But have you wondered how gold prices are formulated in India by top jewellers?

Gold prices are influenced by the demand and supply globally, currency fluctuations and geopolitical events. However, gold prices in the market are just one key component to decide the final value of physical gold that is available at jewellery stores.

Apart from gold price trends, the second most important factor is making charges which is decided by the companies and based upon a host of criteria. Other factors are GST, weight, size and design type.

What are making charges for gold jewellery?

Gold-making charges refer to the rates jewellers charge for the processing of gold to turn it into jewellery. These charges are caused because of the labour of the artisan and other overheads in changing raw gold bars into fine ornaments, as per Aditya Birla Capital’s website.

Currently, in India, charges range from 5% to 30% depending upon the brands. Formula for calculating making charges are — Total Cost = (Gold Weight × Present Gold Rate) + (Gold Weight × Making Charge per Gram) + Wastage Charges

Let’s get an understanding of making charges in gold by the top 5 jewellers in India.

Titan Company:

Backed by Tata Group, Titan Company is the leader in the gems and jewellery sector in India. The company with a market cap of nearly Rs 3.10 lakh crore on stock exchanges, has renowned brands such as Titan Watches, Fastrack, Tanishq Jewellery, and Caratlane among others.

Taking Tanishq, is one of the most popular brands, the making charges depend upon its type of jewellery, design complexity and craftsmanship. As per the website, in general terms, for plan gold jewellery of Tanishq, the making charges would range from a minimum of 8% to 25% on the total gold value.

The charges could be higher between 15% to 30% of the total value of diamond and studded jewellery. On special collections or customisation, the making charges are even higher.

Let’s take an example! For instance, on Tanishq’s website, the Artsy 22 Karat Gold Round Stud Earrings which are currently priced at Rs 64,067, will be included with making charges of up to Rs 13,606.45 which would be 21.2% of the total value.

When it comes to Swirling Luxe Diamond Stud Earrings which is currently priced at Rs 55,471, the making charges are seen around Rs 11,368 which accounts for about 20% of the total value.

Kalyan Jewellers:

Headquartered in Kerala, Kalyan Jewellers has spanned its business not only in India but also in the Middle East. The company has brands like Mudhra, Anokhi, Ziah, Nimah, and Tejasvi among others. Just like Titan, Kalyan Jewellers making charges would be based upon the size, type of jewellery, designs, and craftsmanship.

On its main shopping website, a Campanuley Diamond Necklace which is priced at Rs 67,901, included charges of Rs 9,875 which was about 14.6% of the total value.

In the case of a mahek diamond ring with gold plates that is available at Rs 33,763, the making charge was Rs 5,950 which accounted for about 17.6% of the total value.

Senco Gold:

Founded in 1994, Senco Gold has a pan-India presence and is among the leading jewellers in the eastern region of the country. Currently, Senco is offering 15% to 75% off on making charges on new arrivals. Due to this, the price of jewellery is even cheaper.

For instance, one Radiant Love Tale Diamond Stud has 50% off on making charges and a flat 5% off on diamond value. The price break-up as per Senco’s website is:

Gold Value: Rs 11,098 (18 Carat Gold)

Diamond Value: Due to a 5% discount, the value is Rs 39,604 from Rs 41,688 which is without discount.

Making charges: At a 50% discount, the making charges get lower to Rs 2,425 compared to without the discount which would come to around Rs 4,850.

GST: 3% GST will be levied.

Taking the discount into consideration, the making charges accounted for 4.43% of the total value of the jewellery. Without the discount, the making charges would account for about 9% of the total value.

PC Jewellers:

Based in New Delhi, PC Jewellers opened in April 2005. The company is engaged in manufacturing, exporting, wholesale and retailing gold and diamond jewellery across India. PC Jewellers created its own brand and is competing against Tanishq, Senco, and Kalyan Jewellers among others.

To understand fully what could be the making charges at PC Jewellers. Let’s take a look at a couple of products in different sizes and designs, PC Jewellers is selling them on its website.

A Golden Camera Diamond Pendant which is priced at Rs 71,613, has made charges of Rs 20,777 which is 28% of the total value.

However, the charges are low at Rs 7,414 on the Adlai Diamond Ring which is priced at Rs 53,066. Here, making charges accounted for nearly 14% of the total value. But the same may not be the case with the Awinita Diamond Ring which is priced at Rs 66,050 but has making charges of Rs 15,136 which is about 23% of the total value.

Another example would be Viveka Diamond Earrings, which is priced at Rs 58,748 as of February 5, and has making charges of Rs 7,898. Here, the making charges accounted for 13.44% of the total value.

Hence, PC Jewellers making charges could be roughly between 10% to 30%.

PN Gadgil Jewellers:

PN Gadgil Jewellers founded in 1832, is one of the oldest jewellers in the country.

For instance, a Peacock charm Gold Stud Earring priced at Rs 26,264, had making charges of Rs 3,050 which was 11.61% of the value. While a Heritage Jhumka Gold Earring priced at Rs 72,621 had making charges of Rs 9,694 which was over 13.3% of the total value.