How to Calculate Gold & Silver Rate as per Purity: Formulas, GST & Making Charges

The purity of gold is measured in Karats out of a 24-part base. When you view our live market rate board, the published rates correspond precisely to these mathematical ratios: • 24 Karat (99.9% / 99.5%): Benchmark fine bullion • 22 Karat (91.6%): Standard hallmarked jewellery • 18 Karat (75.0%): Diamond and stone-studded ornaments • 14 Karat (58.3%): Lightweight and modern daily wear

When purchasing any gold jewellery article in India, your computerized invoice must strictly follow this transparent sequence: Step A: Determine Net Weight = Gross Weight - Stone/Lac Weight Step B: Calculate Gold Value = Net Weight * Applicable Karat Rate per gram Step C: Add Making Charges (MC) Step D: Apply 3% GST on (Gold Value + Making Charges)

Let us calculate the exact cost of a 10.00 gram 22K BIS Hallmarked gold bangle assuming the 22K benchmark rate is ₹12,760 per gram with 10% making charges: 1. Net Gold Weight: 10.000 grams 2. Gold Base Value: 10.000 * ₹12,760 = ₹1,27,600.00 3. Making Charges (10%): ₹1,27,600 * 10% = ₹12,760.00 4. Subtotal before Tax: ₹1,27,600 + ₹12,760 = ₹1,40,360.00 5. GST (3% uniform): ₹1,40,360 * 3% = ₹4,210.80 6. Total Net Payable: ₹1,44,570.80

Just like gold, silver pricing follows transparent purity benchmarks based on fine 99.9% (999) bullion: A. The 3 Silver Purity Standards in India: • 999 Fine Silver (99.9%): Pure bullion bars, chandi sikka (coins), and investment biscuits. • 925 Sterling Silver (92.5%): Internationally recognized standard for fine silver jewellery, chains, designer rings, bracelets, and oxidised contemporary silverware (7.5% copper alloy adds strength). • 800 - 850 Traditional Silver (80.0% – 85.0%): Widely crafted for traditional Indian pooja utensils, heavy kalash, niranjan, idols, payal (anklets), and bichiya (toe rings) where rigidity is essential. B. Benchmark Conversion (Per Kg vs Per Gram): Silver rates on commodity markets are quoted per 1 Kilogram (1,000 grams). To find the benchmark bullion rate per gram: Rate per gram = Rate per kg / 1,000. For example, if silver is ₹1,83,000 per kg, the 999 benchmark rate is ₹183.00 per gram. C. How Purity-Adjusted Silver Rates are Derived: • 925 Sterling Rate per gram = Benchmark 999 Rate * (92.5 / 99.9) ≈ 999 Rate * 0.9259 • 800 Pooja Silver Rate per gram = Benchmark 999 Rate * (80.0 / 99.9) ≈ 999 Rate * 0.8008 D. Silver Making Charges (घडणावळ): Unlike gold where making charges are usually percentage-based, silver articles are typically priced with flat per-gram making charges (e.g., ₹12 to ₹30 per gram for plain casting, or ₹30 to ₹60 per gram for intricate hand-embossed antique / filigree work). E. Worked Example: Buying a 50g 925 Sterling Silver Hallmarked Payal (Anklet) Assuming 999 Bullion Rate = ₹183/g and 925 Making Charges = ₹25/g: 1. 925 Silver Base Rate: ₹183 * 0.9259 = ₹169.44 per gram 2. Silver Metal Value (50g): 50 * ₹169.44 = ₹8,472.00 3. Making Charges (₹25/g): 50 * ₹25 = ₹1,250.00 4. Pre-tax Subtotal: ₹8,472 + ₹1,250 = ₹9,722.00 5. GST (3% uniform): ₹9,722 * 3% = ₹291.66 6. Total Net Payable: ₹10,013.66 F. Worked Example: Buying a 200g 800-Purity Traditional Pooja Kalash Assuming 999 Bullion Rate = ₹183/g and Pooja Utensil Making Charges = ₹15/g: 1. 800 Silver Base Rate: ₹183 * 0.8008 = ₹146.55 per gram 2. Metal Value (200g): 200 * ₹146.55 = ₹29,310.00 3. Making Charges (₹15/g): 200 * ₹15 = ₹3,000.00 4. Pre-tax Subtotal: ₹29,310 + ₹3,000 = ₹32,310.00 5. GST (3% uniform): ₹32,310 * 3% = ₹969.30 6. Total Net Payable: ₹33,279.30

When exchanging old jewellery, purity is tested in front of you using computerized XRF spectrometry. Because old ornaments contain solder joints (टाका) and may need refining, jewellers apply a transparent valuation formula. Hypothetical Illustration (strictly for mathematical explanation): Suppose you bring an old gold chain tested at 22 Karat (91.6% purity) weighing 10.00 grams. For illustrative purposes only, assuming a hypothetical 3% refining deduction: • Gross & Net Gold Weight: 10.000 grams • Pure 24K Gold Content: 10.000 * 91.6% = 9.160 grams • Less Hypothetical 3% Refining Melting Deduction (illustrative only): 9.160 * 3% = 0.275 grams • Net Realisable Pure Gold: 9.160 - 0.275 = 8.885 grams • Value at benchmark 24K rate (say ₹13,920/g): 8.885 * ₹13,920 = ₹1,23,679.20 credited directly toward your new purchase! Note: Actual exchange terms depend on test results and daily trade rates. The 3% figure is purely a hypothetical numerical example.