How to Calculate Gold Rate

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Indians are known to buy gold, especially around Akshaya Tritiya, Dhanteras, and Diwali. Their jewellery is the coin, etc. Although we spend hours selecting what we want in the local market, we do not generally question the quoted price. That's not right. You should not blindly rely on the price of the Jeweler, as the final amount of the price you pay, like the Gold Prize, charges, and the value of gold, is affected by many factors.


This is how GOLD RATE is calculated:

The final rate of the jewellery = rate of (22 KT or 18 KT) gold X (Weight in grams) + Making charges + GST at 3% on (rate of jewellery + making charges)

Example:

Assume the prices of Rs. 27 350 for 10 gram of 22 kt gold for gold listed as a jeweller. If you now want to buy a 9.6-gram gold chain, the price will be calculated as:

  • 1 gram gold price = Rs 27,350 divided by 10 = Rs 2,735
  • The gold chain price is 9.60 gram= 2.735 times Rs 9.60 Grams = 26.256 Rs
  • Add to the charging, 10% to Rs 2.625.60 is supposed to (10 percent of Rs 26,256)
  • Golden Jewelry Total price = Rs 28,881.60 (the price of 9.60-gram gold chain plus making charges)
  • Include GST of 3%: Rs 866.44 (3 percent of Rs 28,881.60)
  • The final bill is Rs 29,748.04 (Rs 26,256 + Rs 2,625.60 + Rs 866.44)


When you buy gold jewellery, things to remember:

The gold price depends on its location and quality: The price of gold that jewellers usually quote depends on the quality and location of gold ornaments you buy from. Gold is available in various grades, from 9K to 24K. The higher the karats, the better the quality of the jewellery, the higher the price. The rate of gold also depends on the place, i.e. the town of the gold you buy. For example, if the 24K Gold Rate in Chennai amounts to Rs 32,345, then it could amount to Rs 30,525 with a 24K gold ratio in Kerala.

The price of studded jewellery varies somewhat:

Gold jewellery in various designs is available. Some even incorporate artificial diamonds or semi-precious stones. Sometimes when you buy such jewellery, the weight of the entire gemstone is considered as the weight of the gold, and the prevailing gold price is paid for it. Make sure your jeweler is calculating the price of gold and gold stones separately.

Invest in pure gold rather than studded gold:

Gold jewellery is also great for investment, besides being a declaration on fashion. If you purchase long-term investment gold ornaments, you can buy high-purity gold and BIS jewellery.

Buy only standardized jewellery:

You can find unstandardized and standardized gold ornaments on the market when you shop for gold jewellery. The pureness of its gold content is not ensured by unstandardized gold ornaments. Gold decorations standardized by the Bureau of Indian Standards (BIS) certify pure gold, on the other hand. Although BIS-marked gold jewels are sold at a low premium, at any time, you can exchange them for a quality margin at any jeweller's shop.

Making Charges are a substantial part of your entire bill:

In addition to the gold price, buyers must also take account of the charges, as they make up much of your total bill. The price of gold used in jewellery usually varies between 6% and 14% and may increase depending on the Jeweler. Some gems include these charges per gram of gold at a fixed rate, while others may charge a specific percentage of the total weight of the jewellery. You must try to buy gold jewellery from jewellers who charge low production charges if you are interested in saving money.

CONCLUSION:

The price of gold in India now differs from one city to another. The Gold Rate Today in Pune may not be equal to the gold rate in Hyderabad. Although the difference is marginal, each Jeweler or retailer tends to follow due to the different gold associations. The Jeweler may, for instance, keep up with the LBMA rates (London Bullion market association). Others may be following the rate of the MJDMA. Ideally, the international reference rates that prevail on that particular day, together with GST, the pure gold, are considered, and then the price of gold is reached.

 

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