Retail pricing
Gold making charges: how jewelry invoices are built
Learn what gold making charges cover, how percentage and per-gram methods work, and why they often disappear on buy-back.
Independent editorial reference · verify market data and local rules before a transaction.
Updated August 29, 2026
Making charges are the workmanship portion of a jewellery quote, but the label can hide several different pricing methods. This guide explains percentage, per-gram, and fixed-fee calculations, shows how to compare an invoice with a metal reference, and explains why a resale offer often treats old workmanship differently.
What a making charge is intended to cover
The metal line pays for gold content under the seller’s stated purity and weight convention. A making charge is meant to account for design, forming, casting, soldering, polishing, setting, finishing, workshop time, and the service of presenting a finished item. The exact bundle varies by seller, product, and market, so the phrase should never be treated as a universal percentage.
A plain machine-made chain and a hand-finished stone-set necklace can have the same karat and gross weight while requiring very different labour. Brand presentation, custom sizing, rush work, packaging, and after-sales service may appear in separate lines or be built into a single design fee. Ask what the shop includes before comparing a rate with another counter.
Three common ways shops calculate making
A percentage method applies a stated rate to a defined metal value. A per-gram method multiplies a workmanship amount by the chosen weight. A fixed design fee assigns one amount to the item regardless of small movements in the gold rate. Each approach can be reasonable if the base, weight, and tax treatment are disclosed.
The base matters. A percentage may apply to the 22K metal amount, the gross product amount, or a seller-defined value before discount. A per-gram charge may use net gold grams or total product grams. Ask the salesperson to write the formula, then calculate it with the same inputs. A low percentage is not comparable with a low per-gram fee until the bases match.
A simple invoice example
Imagine a ten-gram 22K piece with a documented metal baseline of AED 2,291.67. An 8 percent making charge on that metal line would be about AED 183.33, producing AED 2,475 before any stone, tax, delivery, or other item. The example explains one method; it is not a suggested Dubai or India market rate.
If another shop quotes AED 20 per gram, the making line would be AED 200 if it applies to ten grams. Those charges are close in this illustration, but a changing gold rate would affect the percentage method while the per-gram method would not move in the same way. The customer should compare the resulting currency amount, not only the advertised format.
Questions that expose hidden components
Ask whether the scale weight is gross or net, whether stones are deducted, whether solder and clasps are included, and whether wastage is a separate charge. Request the metal rate and purity, not only “today’s gold rate.” Ask whether the discount reduces metal, making, or both, and whether tax is calculated on the discounted amount under the current local rules.
For custom work, clarify which terms are fixed after the deposit and which can change with the gold market. For a repair or resizing, ask whether the labour is included in the original policy. A detailed quote gives the buyer a way to compare products honestly and gives the seller a clear record if a dispute arises.
India, Dubai, and product differences
Indian jewellery quotes may show metal value, making, stones, discounts, and GST in a compact invoice. Dubai quotes may separate making and VAT while offering a wide range of machine-made, handmade, and branded products. These are useful contexts, not fixed market laws. A city, brand, workshop, and product design can each change the commercial terms.
Do not use one shop’s advertised making band as proof that every other seller is overcharging. Compare the same karat, net gold weight, construction quality, stone specification, tax basis, and return policy. The meaningful question is the total cost for a comparable item and the amount of recoverable metal if the piece is later sold.
Why making often disappears on buy-back
A scrap-oriented buyer is usually purchasing recoverable metal, not the design service paid by the original customer. It may test the item, remove or ignore stones, assign a purity, apply a bid below the reference, and deduct assay or handling costs. The original making charge, tax, and retail margin may therefore have little or no value in that calculation.
A branded or collectible piece can sometimes find a secondary jewellery buyer who values design, but that is a separate market and must be supported by an actual offer. Ask a buyer to state the per-gram bid, tested weight, purity used, and deductions. Compare the written offer with a contemporaneous metal reference rather than with the old receipt total.
A repeatable comparison checklist
Record the quote timestamp, currency, karat, net and gross weight, metal rate, making method, stone lines, discount, tax, delivery, and payment conditions. Run the metal portion through the Gold Calculate calculator. Then ask the counterparty to explain every remaining line. If a quote cannot be reconstructed, treat that lack of clarity as a reason to pause.
For a sell-back, repeat the process with the buyer’s bid and assay method. Compare multiple reputable counterparties on the same day and ask whether the offer is cash, exchange credit, or conditional on a new purchase. A transparent comparison does not guarantee the cheapest or highest offer, but it reduces the chance of confusing labour with metal.
Sources, current rules, and editorial limits
LBMA and World Gold Council material can help explain the underlying gold market, while BIS and the applicable tax authority provide local hallmark and tax context. Those references do not set a jeweller’s labour price. Current rules and the written invoice control a transaction, and a qualified professional should handle material tax or legal questions.
This page provides an educational framework for reading charges, not an appraisal, negotiation guarantee, or investment recommendation. Live references can be delayed or rounded, and commercial practices change. Check the update date, preserve the source time, and send a correction to Gold Calculate when a claim or source link needs review.