Indians have a tradition of buying gold in the form of jewellery, coins etc. especially around Akshaya Tritya, Dhanteras and Diwali. Although we spend hours at the local jeweller selecting what we want, we usually don’t question the price quoted. This is wrong. You should not blindly trust the price quoted by the jeweller as there are many factors that affect the final amount that you will be paying such as gold price, making charges, value of gems etc.
At present, there is not standard invoicing pattern in the country and prices vary from jeweller to jeweller. Sandeep Kulhalli, senior vice president – retail and marketing, jewellery division, Titan Company explains, “There is no standard invoicing pattern in the country and the billing system varies from one jeweller to the next. Every city has its own jewellery association and the gold rate is declared by these associations every morning due to which the gold rate varies in each town.
Suppose the price of gold listed by the jeweller is Rs. 27,350 for 10 grams of 22KT gold. Now, if you wish to purchase a gold chain of 9.6 grams, then price will be calculated as:
- Price of 1 gram of gold = Rs 27,350 divided by 10 = Rs. 2,735
- Price of 9.60 grams’ gold chain = Rs 2,735 times 9.60 grams = Rs 26,256
- Add making charges, suppose 10 per cent, which comes to Rs 2,625.60 (10% of Rs 26,256)
- Total price of ..
