Entrepreneur Sanjay Kathuria has shared a formula on X that helps buyers estimate the actual value of gold before purchasing jewellery. According to his post, jewellers charge three components: gold rate, wastage, and making charges, with most buyers only focusing on the final number. The calculation involves converting international gold prices into Indian rupees using the COMEX gold rate and USD/INR exchange rate, then adding import duty and GST to arrive at an approximate market value of 24-karat gold in India. This method allows buyers to check the latest COMEX gold price and the prevailing dollar-rupee exchange rate to estimate fair market value before making purchases.
The calculation method requires four key steps using current market data. First, buyers convert the COMEX gold price per troy ounce to Indian rupees by multiplying the international price by the current USD/INR exchange rate. Second, they convert the ounce price to grams using the conversion factor of 1 troy ounce = 28.35 grams. Third, they add around 6% import duty to the converted price. Finally, they apply 3% GST to the total amount to arrive at the estimated price of 24-karat gold. This process provides buyers with a reliable benchmark to compare quotes across different jewellery stores and identify potential overcharging.
Using current market data, the calculation shows how buyers can estimate gold prices. With a COMEX gold price of $4,030 per ounce and USD/INR exchange rate of ₹96, the international price converts to ₹3,86,880 per ounce. After converting to grams and adding 6% import duty and 3% GST, the estimated price of 24-karat gold becomes ₹14,903 per gram. For 22-karat gold, which has 91.6% purity, the calculation results in ₹13,651 per gram by multiplying the 24-karat price by 91.6%. This gives the approximate value of 22-karat gold before adding making charges, wastage, hallmarking charges or other levies.
The calculation method provides buyers with a reliable benchmark to compare quotes across different jewellery stores and identify potential overcharging. According to the formula, jewellers typically charge four components: base gold price, import duty and taxes, wastage charges, and making charges. By knowing the approximate base price, buyers can negotiate better deals, especially when gold prices are trading near record highs. The method helps buyers understand the true value of gold before additional charges are applied by retailers, with most jewellery sold in India made from 22-karat gold due to its durability compared to pure 24-karat gold. Experts advise checking the latest COMEX gold price and prevailing dollar-rupee exchange rate before purchasing gold jewellery to ensure fair pricing.
