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Experts say that while festive offers like 0% making charges look tempting, hidden costs can put a strain on your budget
Check gold rates and wastage charges before buying jewelry.
As the festive season approaches, gold and silver jewellery sales pick up across the country. From Dussehra to Diwali, jewellery shops are crowded, and attractive offers such as “0% making charges” draw many buyers. However, financial experts warn that these offers often come with hidden costs that make the jewellery more expensive than expected.
Investment banker CA Sarthak Anuja, in a LinkedIn post, explained that many jewellers use such offers to attract customers but later add several hidden charges. He outlined 5 key ways through which customers end up paying more.
1. Gold Rate Mark-Up
Most buyers check gold prices on Google before stepping into a store. But jewellers often add up to Rs 200 per gram over the market rate. For a 50-gram purchase, this means an additional cost of Rs 10,000, which is almost a hidden 2% charge. Customers are advised to confirm the rate being applied before making any purchase.
2. Inflated Wastage Charges
Actual wastage during jewellery making is usually only 2-3%. But many jewellers charge up to 5%, citing intricate designs. This charge is calculated on current gold prices, which increases the total bill further. Buyers should ask clearly whether this amount is being applied and why.
3. Precious Stones Priced Higher
Jewellery offered with zero making charges often contains embedded stones. These stones are then priced much higher than their actual value. As a result, the discount on making charges does not really offer any financial benefit.
4. Reduced Buyback Value
Some jewellers promise up to 90% of the value on buyback. But under the 0% making charge schemes, this return can drop to 70-80%, resulting in a loss when customers try to sell or exchange their jewellery.
5. No Benefit of Wholesale Discounts
Jewellers often buy gold at wholesale rates, which are cheaper. However, this benefit is not passed on to customers. Instead, customers end up paying retail prices without any wholesale margin advantage.
Sarthak Anuja also advises buyers to check the HUID number on the BIS Care app before making a purchase. This code confirms the authenticity and purity of the gold under the hallmarking system.
Experts say that while festive offers like 0% making charges look tempting, hidden costs can put a strain on your budget. Therefore, before buying gold, customers should ask for a detailed bill, compare prices with other shops, and verify the purity of the jewellery.
October 20, 2025, 14:14 IST
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