The gold rate is the one number every shop agrees on — it comes from the same market. Making charges, wastage and tax are where quotes actually diverge, and where the difference between a fair price and a poor one lives. Two jewellers quoting the identical rate can be a fifth apart on the final bill.
The four numbers on any gold bill
| Component | What it is | Typical range | Negotiable? |
|---|---|---|---|
| Metal value | Weight × rate for that karat | Set by the market | No — every shop works off the same benchmark |
| Making charge | Labour and design, per gram or as a percentage | 8%–25% | Yes — this is the jeweller's margin |
| Wastage | Extra weight charged for metal lost in manufacture | 0%–8% | Yes, and often waivable entirely |
| Tax | Applied on the total, statutory | Set by law | No |
Worked example at today's rate
A 20 gram, 22 carat piece at Pakistan's current rate of Rs 36,932.41 per gram contains Rs 738,648 of metal. Here is what four different charge structures do to the same piece:
| Quote | Making | Wastage | Total before tax | vs cheapest |
|---|---|---|---|---|
| Shop A — plain chain | 8% | — | Rs 797,740 | cheapest |
| Shop B — same chain, higher labour | 16% | — | Rs 856,832 | +Rs 59,092 |
| Shop C — low making, high wastage | 8% | 6% | Rs 845,605 | +Rs 47,864 |
| Shop D — intricate bridal work | 22% | 3% | Rs 928,185 | +Rs 130,445 |
Note what Shop C does. Its making charge is the lowest on the board — the number it advertises — but the 6% wastage puts it above Shop A. A shop competing on the making charge alone has an obvious place to hide the margin, and that is where to look.
The percentages above are illustrative structures, not quotes from named shops. Ask your own jeweller for their four numbers and run the same arithmetic — the calculator on this site will do it for any weight.
How making charges are quoted
Per gram
A flat amount for every gram of finished weight. This is the more transparent structure, because the charge does not move when the gold rate does — you can compare two shops directly. Common for chains, bangles and machine-made items.
As a percentage of metal value
A percentage of the gold value in the piece. This is the more common structure for designed and bridal jewellery, and it has an important consequence: the charge rises with the gold rate. A 15% making charge costs materially more when gold is at a high than at a low, for identical labour.
If you are buying at a market peak, ask whether the shop will convert to a per-gram basis. Some will.
Wastage: the number to ask about first
Wastage is charged to cover metal genuinely lost in manufacture — filings, melting loss, polishing residue. The justification was strong in an era of fully handmade work. With modern recovery and machine manufacture, actual loss is a fraction of what is often charged.
- It is applied to the weight, then the making charge is applied on top. The two compound — which is why a low making charge with high wastage can be the more expensive quote.
- Many organised chains have dropped it entirely on machine-made items. If a shop still charges 6–8% on a machine-made chain, ask what specifically was lost.
- It is the most waivable item on the bill. More jewellers will drop wastage than will cut a making charge, because it is harder to defend.
Buying back: what you actually recover
This is the part that matters most and gets discussed least. When you sell jewellery back, you are paid for the metal — not for the labour that shaped it.
On the 20 gram example above at a 15% making charge, you pay roughly Rs 849,445 and the metal in it is worth Rs 738,648. If you sold it back the same afternoon at the same rate, you would be roughly Rs 110,797 down before any buyer's deduction. Gold would need to rise about 15.0% simply to break even.
- Buyback policies vary widely. Some chains buy back their own pieces at full metal value; others deduct 3–10%. Independent dealers deduct for assay and refining. Ask before you buy, not after.
- Keep the invoice. A dated invoice showing weight, purity and rate materially improves what you are offered, and in some markets determines whether a buyback is possible at all.
- Coins and bars return closest to full value precisely because they carried almost no making charge going in.
How to compare two quotes properly
Ask each shop for these four figures, separately, and write them down:
- The rate per gram for the exact karat you are buying — not the 24 carat headline.
- The making charge, and whether it is per gram or a percentage.
- The wastage percentage, if any.
- The tax applied and on what base.
Once you have the four, the total is arithmetic and the comparison is objective. A shop unwilling to break down an all-in price has told you something useful about the price.