Gold's High Price
As wedding bells chime and gold prices reach unprecedented heights, a seemingly modest 5-gram gold earring can present a significant financial outlay.
For instance, on February 25, 2026, the price of 22-carat gold in Bengaluru stood at an imposing Rs 14,950 per gram. In Delhi, it was Rs 14,846 per gram, and Indore recorded Rs 14,605 per gram, reflecting the market's current premium value. These figures are not merely abstract numbers; they form the bedrock of your jewellery purchase, and buyers are increasingly urged to scrutinize every component of the final bill before making a commitment, especially during peak wedding seasons when such purchases are common.
Calculating Base Gold Value
Let's dissect the fundamental cost of the metal itself. Using the Bengaluru rate of Rs 14,950 per gram as our reference point, the intrinsic value of 5 grams of pure 22-carat gold amounts to Rs 74,750. This figure, derived from the simple multiplication of the per-gram price and the total weight (Rs 14,950 x 5 = Rs 74,750), represents only the raw material cost. If one were solely acquiring gold in its unadorned form, this would be the exact sum payable. However, transforming this precious metal into an aesthetically pleasing piece of jewellery invariably introduces additional expenses that must be accounted for by discerning shoppers.
Making Charges Explained
Beyond the intrinsic value of the gold, jewellers impose 'making charges,' often referred to as value addition. These charges compensate for the craftsmanship and artistry involved in transforming raw gold into intricate designs like earrings or necklaces. The percentage applied typically fluctuates based on the complexity of the design; simpler patterns might incur around 8% in making charges, while more elaborate, designer pieces can command 10% or even higher. For a wedding-worthy design, assuming a modest 10% making charge on the base gold price of Rs 74,750, this adds Rs 7,475 to the bill. Consequently, the total cost climbs to Rs 82,225 (Rs 74,750 + Rs 7,475). It's crucial for buyers to understand that these charges are a significant contributor to the final price, often leading to sticker shock if not anticipated.
The GST Impact
The final layer of cost added to your gold jewellery purchase is the mandatory Goods and Services Tax (GST). This tax is levied at a fixed rate of 3% on the cumulative amount, which includes both the base gold price and the calculated making charges. Continuing with our example, the 3% GST on the Rs 82,225 subtotal amounts to approximately Rs 2,467. When all components are tallied – the Rs 74,750 for the gold, the Rs 7,475 for making charges, and the Rs 2,467 for GST – the estimated total bill for a simple 5-gram 22-carat gold earring reaches approximately Rs 84,692, rounding up to roughly Rs 84,700. This comprehensive breakdown highlights the importance of budgeting for these additional expenses.
Considerations for Embellishments
The aforementioned cost calculations are exclusively for plain gold earrings. If your chosen design incorporates stones, such as vibrant red or green gems, pearls, or other decorative elements, the overall expense will escalate further. The inclusion of embellishments often leads to a reduction in the net gold weight of the piece, as the stones occupy space. Furthermore, the cost of these stones is itemized and added separately to the bill. It is therefore essential for purchasers to meticulously inquire about and obtain a clear breakdown of stone charges prior to finalizing their acquisition to avoid any unforeseen increases in the final payment.
Negotiating Your Bill
When it comes to the final price of gold jewellery, not all components are set in stone. While the market price of gold and the mandated 3% GST are non-negotiable, making charges offer a potential avenue for discussion. Many reputable jewellery establishments understand the financial pressures associated with wedding expenses and are often amenable to offering discounts on making charges, especially during peak wedding seasons or promotional sales events. Even a small concession on these charges can result in a tangible saving, making a significant difference to your overall budget as you prepare for your special occasion.
