Buying gold is a high-stakes financial decision, but many shoppers are often confused when the price of the same ornament varies at different jewellery stores. While most buyers focus only on the final bill, understanding the base gold price can help you know whether you are paying the correct amount or more than you should.
Speaking about the same, bullion trader and jewellery expert SS Alam recently explained how customers can estimate the fair value of gold before visiting a jeweller while speaking to Sanjay Kathuria on his podcast.
“A jeweller charges you three things. The gold rate, wastage, and making charges. Most people only look at the final number,” he said, adding that checking the base gold rate first can help buyers make informed decisions.
But the main question arises: How can you calculate the gold price in India?
Steps to calculate the gold price in India using the COMEX rate?
International gold prices are quoted in US dollars per troy ounce on exchanges such as COMEX. To estimate the Indian gold price, buyers need to convert the international price into rupees per gram and then add applicable duties and taxes.
Read More: Gold Rate Today: Check 24K, 22K Gold Prices In Mumbai, Delhi, Chennai, Kolkata, Bengaluru On July 21
Here's a step-by-step calculation to know the base gold price:
Check the COMEX gold price per ounce.
Multiply it by the current US dollar–rupee exchange rate.
Convert the per-ounce price into a per-gram price.
Add approximately 6% import duty.
Finally, add 3% GST.
For example, if the COMEX gold price is $4,030 per ounce and the exchange rate is Rs 96 per US dollar:
$4,030 × Rs 96 = Rs 3,86,880 per ounce
Assuming 1 ounce = 28.35 grams, the price works out to:
Rs 3,86,880 ÷ 28.35 = Rs 13,650 per gram
Next, add around 6% excise duty:
Rs 13,650 + Rs 819 = Rs 14,469 per gram
Lastly, add 3% GST:
Rs 14,469 + Rs 434 = Rs 14,903 per gram
Based on this calculation, the estimated price of 24-karat gold comes to around Rs 14,903 per gram.
How to calculate the price of 22-karat gold?
Since most gold jewellery in India is made from 22-karat gold, buyers can estimate its value by multiplying the 24-karat price by 91.6%, which reflects the purity of 22-karat gold.
Using the above example: Rs 14,903 × 91.6% = Rs 13,651 per gram
This means the estimated value of 22-karat gold is around Rs 13,651 per gram, before adding making charges, wastage, and other levies charged by jewellers.
While making charges and wastage vary from one jeweller to another, understanding the base gold price allows buyers to compare quotes more effectively and make better-informed purchasing decisions.
Read More: Stop Overpaying For Gold: Decode Your Jeweller's Bill With This Quick COMEX Formula
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