How Jewelry Metal Value Is Calculated

A piece of gold jewelry has several cost layers. Separating them is the key to comparing quotes fairly.

Published by the Heartline Works team · Last reviewed 2026-10-02 · Editorial policy

The layers

  1. Metal value = weight × purity × reference price per gram.
  2. Wastage: an allowance for metal lost in making, often expressed as a percentage of weight and charged at the metal price.
  3. Making charge: labour and overhead, per gram, as a percentage, or flat.
  4. Tax: applied to some or all of the above depending on local rules.

Example with round numbers

If pure gold were 100 per gram, a 10 g 18K piece has metal value 10 × 0.75 × 100 = 750. With 10% wastage (75), a making charge of 5 per gram (50) and 10% tax on the total: (750 + 75 + 50) × 1.10 = 962.50.

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Ask for each layer separately. A low making charge with a high wastage percentage can cost more than the reverse.

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Frequently asked questions

Are stones included?
No. Weigh stones separately; they are priced on their own.

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