How is Hallmark Gold Price Calculated in India? Gold has always been a prized possession in India, not just as jewelry but also as an investment. When buying gold, you may have noticed that the price of Hallmark Gold is slightly different from regular gold. But have you ever wondered how the price of Hallmark Gold is calculated in India? Let’s break it down in a simple way.
Table of Contents
What is Hallmark Gold?
Hallmark Gold refers to gold that has been certified for purity by the Bureau of Indian Standards (BIS). The hallmarking process ensures that the gold you buy meets the quality standards set by BIS. Hallmark gold is engraved with a BIS logo, purity in karats (22K, 18K, 14K), the jeweler’s identification mark, and the year of certification. Since it assures authenticity, the price of Hallmark Gold may be slightly higher than non-hallmarked gold.
Factors That Determine Hallmark Gold Price in India
The price of Hallmark Gold is not just based on the current market rate of gold. Several factors contribute to its final price, including gold rate per gram, hallmarking charges, making charges, and GST (Goods and Services Tax).
1. Gold Rate Per Gram
The base price of Hallmark Gold is determined by the daily gold rate in India. The gold rate fluctuates based on international gold prices, demand-supply dynamics, import duties, and currency exchange rates. The price of 24K pure gold is the reference point for determining the price of 22K and 18K gold.
2. Purity of Gold (22K vs. 18K vs. 14K)
Gold purity plays a crucial role in price calculation. 24K gold is the purest, containing 99.9% gold, but since it is too soft for making jewelry, most ornaments are made of 22K or 18K gold. 22K gold contains 91.6% pure gold, while 18K gold contains 75% gold. The price of Hallmark Gold is adjusted based on purity levels.
3. Hallmarking Charges
Since hallmarking is done by BIS-certified centers, a small charge is levied for testing and certification. This charge is nominal but is included in the final price of Hallmark Gold. The BIS hallmarking charges are ₹35 per article of gold jewelry (as per recent regulations).
4. Making Charges
Making charges are the fees that jewelers charge for designing and crafting the jewelry. This varies based on the complexity of the design and can range from 3% to 25% of the gold price. Some high-end jewelry pieces may have even higher making charges. For example, simple gold chains have lower making charges compared to intricate bridal jewelry.
5. GST on Hallmark Gold
The Indian government imposes 3% GST on the total price of gold jewelry (including gold rate + making charges). This is a mandatory tax and applies to all purchases of Hallmark Gold.
Example of Hallmark Gold Price Calculation
Let’s assume you are buying a 22K Hallmark Gold chain weighing 10 grams, and the gold rate today is ₹6,000 per gram.
- Gold Price = ₹6,000 × 10 grams = ₹60,000
- Making Charges (10%) = ₹6,000
- Subtotal = ₹60,000 + ₹6,000 = ₹66,000
- GST (3%) = ₹1,980
- Final Price of Hallmark Gold Jewelry = ₹66,000 + ₹1,980 = ₹67,980
Why is Hallmark Gold More Expensive?
Some people wonder why Hallmark Gold costs more than non-hallmarked gold. The reason is quality assurance, transparency, and government certification. Non-hallmarked gold might contain less gold than claimed, whereas Hallmark Gold guarantees purity, making it more reliable for investment and resale.
How to Check If Your Gold is Hallmarked?
To ensure you’re buying genuine Hallmark Gold, always check for these four markings on the jewelry:
- BIS Logo – Ensures government certification.
- Purity Mark (916 for 22K, 750 for 18K, etc.) – Indicates the actual gold content.
- Jeweler’s Identification Mark – Confirms authenticity.
- Year of Certification Code – Shows when it was tested.
Conclusion
How is Hallmark Gold price calculated? The price of Hallmark Gold in India is calculated based on the current gold rate, purity level, hallmarking charges, making charges, and GST. Though it may be slightly more expensive than non-hallmarked gold, it ensures purity and quality, making it a safer investment. Next time you buy gold, make sure it is BIS Hallmarked to get the best value for your money!