Gold jewellery making charges in India typically range between 3-30% of the total gold value, with heavily worked pieces commanding higher rates. According to Suvankar Sen, MD and CEO of Senco Gold, the industry calculates charges in two ways - either as a fixed amount per gram or as a percentage of gold value. The percentage method is more common for intricate jewellery, resulting in different pricing structures for similar-looking pieces depending on craftsmanship and calculation methods.
Several components contribute to the overall making charges, as detailed by industry experts. Labour costs account for the complexity of design, craftsmanship intricacy, handwork involved, stone setting, enamel work, finishing requirements, and time taken to create the final piece. Design intricacy contributes 10-25% of gold cost, while GST on making charges is 5% over and above the 3% GST on total gold value purchase. Additionally, wastage ranges from 5-10%, further inflating the final cost for buyers. The current market data shows 18K gold per gram at ₹19,890,350 Iranian Rials as of May 16, 2026, with no change from the previous day.
Recent market developments show significant price corrections in the gold jewellery segment. As reported by Tanishq, gold prices witnessed a sharp correction on May 15, 2026 (Friday, 3:30 PM), with 18K gold rates dropping to ₹1,19,410 per 10 grams (down ₹2,050), 22K gold to ₹1,45,950 per 10 grams (down ₹2,500), and 24K gold to ₹1,59,220 per 10 grams (down ₹2,730). This sudden decline comes after heavy volatility in the bullion market and massive sell-off on MCX futures trading, with experts attributing the fall to profit booking after recent record-breaking rallies.
Kumar Binit, CEO of airpay money, emphasized that buying gold jewellery creates a strain reflected at resale. As reported by airpay money, jewellers buy back by weight at gold rates, meaning making charges once paid are never recovered. A buyer spending ₹20,000 in making charges on a ₹1 lakh purchase effectively loses that amount immediately upon purchase.
Despite rising prices, Indian gold demand remains strong according to the World Gold Council. Indians purchased 62 tonnes of gold bars and coins during Q1 2026, exceeding net ETF demand. This preference stems from gold coins and bars carrying typically 3% GST on gold value compared to higher making charges on jewellery, making them more cost-effective investment options. The recent price corrections may present opportunities for jewellery buyers, with experts noting that despite today's correction, gold prices are still trading near historically high levels due to global uncertainty, geopolitical tensions, and strong investment demand.
