Let’s understand this calculation through an easy example so that you get some more idea:
Suppose, you wish to buy a 22 karat gold chain of weight 10.5 grams and the price of 22 Karat Gold listed by the jeweler on that day is Rupees 43,000 per 10 grams and the jeweler’s making charges are 15% then the final Jewellery price will be calculated as below:
- Price of 10 grams of 22 Karat Gold = Rs. 43,000
- Price of 1 gram of 22 Karat Gold = Rs. 43,000/10 = Rs. 4,300
- Price of 10.5 grams of 22 Karat Gold Chain = Rs. 4,300 * 10.5 = Rs. 45,150
- Making charges = 15% of Rs. 45,150 = Rs. 6,772
- So, the total value of gold chain excluding tax = Rs. 45,150 + Rs. 6,772 = Rs. 51,922
- GST @ 3% on the total price = 3% of Rs. 51,922 = Rs. 1,558
- And, finally the total price with tax becomes = Rs. 51,922 + Rs. 1,558 = Rs. 53,480
So, the final bill amount of your gold chain is Rs. 53,480
Delicate and beautiful gold jewelleries are made through a process called ‘soldering’. It is a process where in two or more metals are joined together by melting and using a filler metal (solder) into the joint. The filler metal used should always have a melting point that is lower than the gold so that the purity of gold is retained when the jewellery is melted. Cadmium is used as the ‘solder’ with a ratio of 92 per cent gold and 8 per cent cadmium.This cadmium-soldered gold jewellery was known as KDM gold or jewellery. However, the Bureau of Indian Standards has banned these gold from circulation as it is proven to be hazardous to health of artisans working with it.
Usually, gold is categorized based on its purity. 24 carat, 23 carat, 22 carat and 18 carat etc., are the classification of gold based on its purity. 22 carat gold is referred to as ‘BIS 916’ gold. Basically, purity of gold in the final product is denoted by the number 916. It means, 91.6 pure gold in 100 gram alloy (a combination of metals). Likewise, 23 carat gold is referred to as 958 gold which means 95.8 grams of pure gold in 100 gram alloy. 18 carat or 750 gold means 75 grams of pure gold in 100 gram alloy. Pure gold is too soft in nature which makes it difficult to create intricate designs of jewellery. Delicate designs can be made using 22 carat or BIS 916 gold. Hence, most of the people buying gold ornaments and jewelries usually go with 22 carat or 916 gold.