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Understanding the Gold Calculator: How to Calculate the Value of Your Gold

Date of Published: September 13, 2023

Gold is known as the symbol of wealth, luxury and stability for centuries. Traditionally, we Indians attach a lot of importance to gold and purchase it for its cultural significance as well as from an investment angle. We spend a lot of time at the jewelers making the decision of buying gold p. But, we often make the mistake of not checking the authenticity of the quoted price by the jeweler. Lack of awareness on various facets of gold purchase can cost you a lot as a customer. That’s why it’s very important to understand the value of gold before purchasing and selling. Let’s understand every detail about the gold calculator and its process for gold rate calculation.

 

How to calculate gold price?

The price of gold varies from city to city. There is no standard rate of gold prices across the country. Every city has their own particular association which decides the gold rate every morning through different mediums like websites and newspapers. 

 

Whenever we go to buy jewelry, the price quoted by the jeweler is not the same as the gold rate of that day. It includes making charges and GST.

 

Final price of gold jewelry = Price of (22 kt or 18 kt or 14 kt) gold X (Weight in grams) + making charges + GST on (Price of jewelry + making charges). 

 

Let us understand it with an example:-

 

Let assume the price of gold listed by the jeweler association in Delhi is Rs. 60,000 for 10 grams of 22kt gold. And, if you want to purchase a gold earring of 4.5 grams, then price will be calculated as:

 

  • If the price of gold is Rs. 60,000 for 10 grams then for 1 gram it comes Rs. 6000
  • Price of 4.5 grams of gold is Rs. 27,000
  • Consider the making charges – 10% then the making charge will be Rs. 2,700
  • Total price = Rs. 29,700 (Rs. 27,000 + Rs. 2,700)
  • Add GST 3% of Rs. 29,700
    = Rs. 29,700 + Rs. 891
    = Rs. 30,591
  • The final price comes up to INR 30,591. This is the amount which will be paid by the customer.

 

When visiting the jeweler shop, make sure to verify the quoted price by using the above gold calculator. It will reduce the chances of being misled and empower  you to make your own gold rate calculation.

 

Factors that can affect value of gold

There are broadly four factors that affect the gold rate calculation:-

 

  • Quality/Purity

Gold purity is measured by a unit called karat. There are various types of gold such as  24 kt, 22 kt, or 18 kt. The price of the gold differs from each other depending on its karat value. 24 kt gold is the most expensive type of gold as it is the purest compared to others. 

  • Gold Pricing

As we discussed above, every morning, the gold association of the city announces the rate of gold for the particular day. And it varies from each other.

  • Making Charges

Making charges differ based on  jewelry design. It depends on the fineness of design, size, other factors like whether the jewelry is man made or machine made..

  • Studded Jewellery

You might have noticed that these days people buy some jewellery which includes some gems. People should be aware that the price of both metals are different and sellers can mislead you by charging as per the weight of gems. It is a critical component of gold rate calculation.

 

Conclusion

Customers should consider four essential factors for gold rate calculation: evaluating gold purity, familiarizing themselves with the jeweller’s exchange policies, verifying product warranties, and ensuring a transparent breakdown of the bill during the purchase of any kind of jewellery. If you face any problem in selling gold or obtaining cash for gold, then you can take help of Value Gold. Value gold has a transparent and customer centric process where it employs automation to assess the purity and value the gold. Not only can you get your gold valued from them, you can also exchange your gold for cash at very attractive prices.

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