Remember lower the V.A. Charges, the more grams of gold you get.
While buying jewellery, besides the gold rate which is market dependent, there are other factors that contribute to the cost of the jewel, more importantly the V.A. Charges which rest with individual jewellers.
Does it influence the cost of a jewel?
Yes, V.A. Charges plays a dominant part in the pricing of a jewel and influences the amount of gold you get.
How does one decide if the jewel is being bought at the right price?
Just ask yourself if you are buying quality jewellery for the lowest V.A. Charges? Are you taking home the maximum grams of gold for the money you pay?
An example of how V.A. Charges affect the price of a gold jewel.
|Cost of 30 grams of gold (@ Rs.2850 per gram)||Rs.85500|
|Add V.A. Charges @ 16%||Rs.13680|
Divide the final cost of jewel by gold rate, i.e 99180/2850 you will realize that have paid for 34.80 grams of gold but are taking home only 30 grams.
For illustrative purposes only. Prices mentioned are indicative and may vary.