Choosing the right jeweller this Diwali: Here's a guide to calculating accurate jewellery prices for 18K and 22-carat gold

Diwali 2024: Calculating the price of 18K and 22K gold jewellery can feel daunting, but with the right knowledge, one can understand the pricing easily. Here’s a guide to understanding the key factors contributing to gold jewellery prices, from karat purity to making charges and taxes.

The "karat" indicates the purity of the gold, with 24K being pure gold. For jewellery, 24K gold is usually not used as it is too soft. Instead, jewellers use 18K or 22K gold to maintain durability while still offering a high level of purity:

22K Gold: It contains 92% gold and 8% alloy metals. This is often used in intricate gold jewellery.
18K Gold: It contains 75% gold and 25% alloy metals. It’s often used in stone-studded jewellery, where strength is needed.

Gold prices fluctuate daily based on international and local market trends. To calculate the jewellery price, first, check the current market rate for 18K and 22K gold per gram. Reputable jewellery stores, banks, and online portals provide real-time updates on gold prices.

For instance, if you want to buy a 20-gram 18-carat ring. You can first convert it into 24K gold. 20gm 18K ring = 15gms pure 24K or 100% gold. So if today’s market price for 24K is = Rs 8000; then 8000x75%=6000; 6000x20gms = Rs 120,000, the cost of the ring.

Besides, some charges cover the craftsmanship and labour involved in creating the piece. They vary depending on the intricacy of the design. This cost may be a percentage of the gold price or a flat fee. Some stores may offer a discount on making charges during sales.

GST=3%×(Base price+ making charges), which concludes to be the final price of gold jewellery.

Points to note:

Compare prices: Prices can vary between jewellers, so it is always good to compare making charges and check if any seasonal offers are available.
Hallmark certification: Ensure that your jewellery is hallmarked, indicating verified purity as per legal standards.
Consider resale value: 22K gold often has better resale value than 18K due to higher gold content.