What the price of a jewellery piece is made of
When you buy gold jewellery in Pakistan, the bill usually has several parts:
- Gold value: the weight of the piece multiplied by the day's rate for its purity. The rate is usually quoted per tola. See Tola, masha and ratti for the units and How gold rate is set for where the daily rate comes from.
- Making charges (also called mazdoori or banwai): the jeweller's fee for the work.
- Wastage (often called kaat or khaad): an extra weight of gold the jeweller charges for, to cover metal lost in cutting, filing and soldering.
- Stones, polish or other extras, if the piece has them.
- Tax, where it applies. See Gold and tax and check current rules with the FBR.
Only the gold value is tied to a public market rate. The other parts are set by each jeweller and change with the design, the city and the shop.
Use the calculator to find the gold value of a piece from its weight, unit and purity at the rate you type in:
Fill in the empty fields to see the result.
| Karat | Fineness, ‰ | Price per gram at this purity |
|---|
Value = grams × purity (karat / 24) × price per gram of pure gold. 1 troy ounce = 31.1035 g, 1 tola = 11.6638 g, 1 baht = 15.244 g, 1 luong = 37.5 g. Shops add making charges and buy back below the selling price.
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Making charges per tola or per gram
Jewellers charge making in a few common ways:
- A fixed amount per tola or per gram of finished weight.
- A share of the gold value, so the charge rises when the gold rate rises.
- A fixed price per piece, which is common for small items.
Handmade and detailed designs usually cost more to make than plain or machine-made pieces. Bridal sets, filigree and stone setting are at the higher end. No official body fixes making charges for the whole country. Sarafa associations publish daily gold rates, but making charges are agreed between you and the jeweller. Ask for the charge in writing before the order is placed.
Wastage (kaat) explained
Wastage is an extra amount of gold added to the weight you pay for. Some jewellers add it as a share of the piece's weight. Others build it into the making charge. The word kaat is also used for the deduction taken when you sell. Ask the jeweller which meaning they intend.
A few points matter here:
- Ask whether wastage is charged separately or included in making.
- Ask whether it is charged on gold weight only or on total weight with stones.
- Compare quotes on the total amount, not on making alone. A low making charge with high wastage can cost more.
Resale deductions: what you get back
When you sell jewellery or exchange it for a new piece, the jeweller normally:
- weighs the piece and removes the weight of stones, lac or wax filling;
- tests the purity, which may be lower than the bill states;
- pays the day's buying rate for that purity, which is usually below the selling rate;
- deducts a resale charge (kaat), often lower when you sell back to the shop that made the piece and show the original bill.
Making charges and wastage are usually not returned on resale. This is the main reason the resale value of gold jewellery is below its purchase price, even when the gold rate has not changed. Plain gold bars or coins usually carry lower making and lower resale deductions than jewellery. Ask about the shop's buy-back terms before you buy.
Worked example
The example uses letters because rates and charges change daily. Put your own figures into the calculator above.
Buying a piece
| Item | How to work it out |
|---|---|
| Gold weight | W (in tola) |
| Gold rate for the piece's purity | R (per tola) |
| Gold value | W × R |
| Wastage | extra weight w, charged at R, so w × R |
| Making | M per tola, so W × M |
| Total before tax and extras | (W + w) × R + W × M |
Selling the same piece later
| Item | How to work it out |
|---|---|
| Net gold weight after removing stones | N |
| Buying rate on the day, after purity test | B |
| Resale deduction | k, as a share or amount the shop states |
| Amount received | N × B, minus k |
Compare the purchase total with the amount received. The gap is made up of making charges, wastage, the difference between the buying and selling rate, purity differences and the resale deduction.
How to protect yourself
- Get a written bill showing weight, purity, rate, making charge, wastage and stone weight as separate lines.
- Ask for a purity test when you buy and when you sell. Learn the purity grades on the gold karat guide.
- Check the day's rate published by your local sarafa association before you visit the shop.
- Keep the bill. Many shops give better resale terms on their own pieces with the original bill.
- For zakat, the value is based on the gold, not on making charges. See Zakat on gold.
More background is on Gold in Pakistan and Gold.
Frequent questions
Are gold making charges fixed by the government in Pakistan?
No official body sets making charges for the whole country. Each jeweller sets them. Agree on them in writing before you order.
What is the difference between making charges and wastage?
Making is the fee for the work. Wastage is extra gold weight added to cover metal lost during manufacture. Some shops combine the two into a single charge.
Why is the resale value of gold jewellery lower than what I paid?
Making charges and wastage are usually not refunded. The shop also pays its buying rate, deducts stones and may apply a resale deduction.
Do I get a better price selling to the same jeweller?
Often yes, especially if you bring the original bill. Each shop sets its own terms, so ask when you buy.
How can I check the gold value of my jewellery?
Find the net gold weight and the purity. Then use the calculator on this page with the day's rate from your local sarafa association.