New Delhi: Gold is a highly valued precious metal and an integral part of Indian culture. Gold jewellery is a popular form of investment and adornment in India, with a rich history dating back centuries. The price of gold in India is influenced by various factors, including global market trends, domestic demand, and currency fluctuations. In this article, we will discuss how jewellers in India calculate the price of gold jewellery and the formula used for the same.
Factors Affecting Gold Jewellery Prices in India
The price of gold in India is primarily determined by the following factors:
- Purity of Gold: In India, gold jewellery is available in various karatage, ranging from 18k to 24k. The higher the karatage, the purer the gold. The purity of gold is expressed in terms of percentage, where 24k gold is considered 100% pure. The price of gold jewellery is calculated based on the purity of the gold used in the jewellery.
- Weight of Gold: The weight of gold used in jewellery is measured in grams. The heavier the jewellery, the more gold it contains, and the higher the price.
- Labour and Making Charges: Labor and making charges are the costs incurred by the jeweller for making the jewellery. This includes the cost of designing, moulding, casting, polishing, and other processes involved in creating the jewellery.
- Market Trends: The price of gold is affected by market trends, such as global demand and supply, currency fluctuations, inflation rates, and political events.