Walking into a jewellery shop can feel overwhelming when you’re trying to figure out if the price you’re being quoted is fair. The shopkeeper throws around terms like “making charges,” “22K,” and “per tola,” and you’re left wondering how the final number was actually calculated.
Let me break it down for you in plain terms so you can walk in confidently and know exactly what you’re paying for.
Understanding Gold Purity: What Does 22K and 24K Actually Mean?
Before we talk about price, you need to understand what you’re buying.
24K gold is 99.9% pure gold. It’s soft, rarely used for jewellery, and mostly kept as an investment.
22K gold is 91.6% pure gold mixed with other metals like copper or silver to make it stronger. This is what most bridal jewellery sets in Pakistan are made from.
You’ll also hear the term 916 gold. That’s just another way of saying 22K. The 916 comes from the purity calculation: 22 divided by 24, times 100, equals 91.6%.
So when someone says they’re selling 916 gold, they mean 22K.
How to Convert 22K Gold Price to 24K
Sometimes you’ll see the gold rate listed as 24K, but you want to buy 22K jewellery. Here’s how to convert:
Let’s say 24K gold is Rs. 250,000 per tola today.
To find the 22K price: (250,000 ÷ 24) × 22 = Rs. 229,166 per tola
It’s that simple. The 22K rate is always lower because there’s less pure gold in it.
Gold Rate Per Gram vs Per Tola
In Pakistan, gold is usually priced per tola. One tola equals 11.66 grams.
If you see a price per gram and want to convert it to tola: multiply by 11.66.
If you have a per tola price and want per gram: divide by 11.66.
Most jewellers work in tolas, but knowing both measurements helps you compare prices when shopping around.
Gross Weight vs Net Gold Weight
This is where people get confused and sometimes overpay.
Gross weight is the total weight of the piece, including any stones, pearls, or decorative elements.
Net gold weight is just the gold itself.
If you’re buying a necklace with emeralds and rubies, the jeweller should weigh the gold separately from the stones. You only pay the gold rate for the actual gold weight, not the entire piece.
Always ask for the net gold weight before finalizing any purchase.
Understanding Making Charges
Here’s where the final price starts climbing beyond just the gold value.
Making charges cover the craftsmanship, labour, and artistry that went into creating your piece. A simple ring will have lower making charges than an intricate bridal set.
There are three common ways jewellers charge:
Per gram making charges: They add a fixed amount per gram of gold. For example, Rs. 2,000 per gram.
Fixed making charges: A flat fee regardless of weight. Common for smaller pieces.
Percentage-based: They add a percentage of the gold value, usually 8% to 20%.
Making charges vary widely between jewellers, and this is where you can negotiate. Don’t be shy about asking for a better rate, especially on expensive purchases.
How to Calculate Gold Jewellery Price in Pakistan
Let’s walk through a real example.
You want to buy a 22K gold bangle set. Here’s what you need to know:
- Today’s 22K gold rate per tola: Rs. 229,000
- Weight of the bangles: 20 grams (net gold weight)
- Making charges: Rs. 1,500 per gram
Step 1: Convert tola price to per gram Rs. 229,000 ÷ 11.66 = Rs. 19,640 per gram
Step 2: Calculate gold value Rs. 19,640 × 20 grams = Rs. 392,800
Step 3: Calculate making charges Rs. 1,500 × 20 grams = Rs. 30,000
Step 4: Total price Rs. 392,800 + Rs. 30,000 = Rs. 422,800
In Pakistan, there’s typically no GST on gold jewellery, so this is your final payable amount.
How to Calculate Gold Jewellery Price in India
The calculation is similar in India, with one key difference: GST.
Using the same example:
- 22K gold rate: ₹6,500 per gram (hypothetical)
- Weight: 20 grams
- Making charges: ₹500 per gram
Gold value: ₹6,500 × 20 = ₹130,000
Making charges: ₹500 × 20 = ₹10,000
Subtotal: ₹140,000
GST (3%): ₹140,000 × 0.03 = ₹4,200
Final price: ₹144,200
How to Calculate Gold Value Manually (Without Making Charges)
If you’re thinking about resale value or want to know the pure gold worth of your jewellery:
Simply multiply the gold rate per gram by the net weight.
For our 20-gram bangle example: Rs. 19,640 per gram × 20 grams = Rs. 392,800
This is the intrinsic value of your gold. When you resell, you’ll typically get close to this amount, minus a small deduction. The making charges you paid initially won’t count toward resale value.
Common Mistakes When Buying Gold Jewellery
Confusing 22K with 24K: Always confirm which karat you’re being quoted for.
Not asking for net weight: Insist on knowing the exact gold weight without stones or decorations.
Accepting high making charges without negotiation: Making charges are flexible. Compare rates across jewellers.
Assuming uniform prices: Gold rates change daily. Always check the current rate before purchasing.
Ignoring hallmarking: Make sure your gold is hallmarked to guarantee purity.
Should You Buy One Large Piece or Multiple Smaller Ones?
From a value perspective, larger pieces often have lower making charges per gram. If you’re investing, buying a single substantial piece can save you money on craftsmanship costs.
However, smaller pieces like earrings or bracelets offer more versatility for daily wear.
Final Thoughts
Understanding how gold jewellery is priced puts you in control. You’re no longer at the mercy of whatever number the jeweller writes down. You can calculate the value yourself, negotiate confidently, and walk away with exactly what you want at a fair price.
Remember: the key factors are gold purity (22K vs 24K), net weight (not gross), today’s gold rate, and making charges. Master these four elements, and you’ll never overpay for gold jewellery again.
Whether you’re shopping for your wedding, buying a gift, or investing in gold, take your time, ask questions, and do the math before you commit.