Whenever we buy gold, we hear terms like making charges and wastage charges. Thus we end up in paying something more than the actual gold rate on that particular day.
So what all these rates are about?
Making charges:
Whenever ornament is made, the goldsmith puts in lots of effort to give exceptional designs which attracts the buyer.Even though , machines have reduced the manual effort, still the craftsman artistic skill is indeed required.So, this ends up in jewellery shops fixing certain charges as making charges.This depends on the type of the ornament and complexity involved in it.The rate varies between 3%-12%. 10% is most common. However the same can be negotiated.There are few occasions where offer comes out with zero making charges.
Wastage charges:
Do gold gets wasted in making? If we buy,say 2 gram chain, we need to pay for 2 grams and labour cost.Gold does not disappear. Then why this wastage charges?
Craftsman wastes some gold while manufacturing which depends on the jewellery item. For the pure gold items the wastage is around 6-8%, whereas for a diamond jewellery it goes upto 15% of pure gold. A complete finished gold ornament shines brilliantly. But during the process of making some amount of gold will be wasted or go as loss while cutting, soldering,melting etc.Thus jewellers collects this as wastage charges.However, this can be negotiated.
This leads to price difference of what needs to actually paid and what we pay for. Making Charges and wastage charges are what a consumer pays above the price of gold(on a certain day) for crafting the gold into jewellery. This variation depends on the ornaments we buy.
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