Why is wastage and making charges added to Diamond or Gold jewellery after the price is marked on the Diamond and Gold?
Diamond jewelry sets the tone for many occasions such as festivals, engagements, weddings, birthdays, and other such occasions. When we set out to purchase Diamond and gold jewellery, there are quite a few things that we require to consider. Here is everything you need to know about wastage and making charges and why they are important in jewelry!
Once a jeweler commissions a Craftsman (Karigar) to manufacture a jewellery product. The Craftsman (karigar) wastes some gold in manufacturing jewelry item. Yeah!! what you just read is very true. The gold item gets wasted in the manufacture of a jewellery product. It depends on the jewellery product. For the Pure Gold Products the wastage is around 6-8%, whereas for a diamond jewellery items it goes up to 15%-25% of pure gold.
Also remember that the Craftsman (Karigar) mixes alloys to jewelry to make it 22k pure jewelry. These alloys also adds up to the cost and is entered under wastage charges.
Making charges are what a jewelry consumer pays above the price of Diamond and Gold items for crafting it into jewellery. This varies from item (viz. chain) to item (viz. ring) and from one jeweler to another jeweler. Making charge will increase as Diamond and Gold rates increase. The increase in the Diamond and Gold rate will have a directly relation to the increase in wastage and making cost for gold and diamond jewellery. The making charges of jewellery is calculated mainly on the basis of the percentage of wastage. The wastage is the loss on gold while manufacturing of jewelry item, this loss happens while scrubbing and cleansing the item into shape and while molding the jewelry piece. This loss is blown in the air as minuscule gold dust like materials or particles which are non recoverable. Ideally 20% goes in wastage while manufacturing a diamond jewellery.
Cost of Jewellery Product = Making Charges + Wastage Charges + Cost of Stones
So, when the Diamond and Gold Rate increases, this 20% wastage also happens in Diamond and Gold. Directly there will be increase in wastage and manufacturing charge. This 20% is only the charge of wastage, there is also another charge that needs to be added that is the Craftsman (Karigar) charge. The person who makes it (karigar) will also charge a fee for his work (art) which is also added in the manufacturing charge.
For further information please visit our website. If you are in the Kathmandu area please visit our showroom in Bishal Bazar, Store no 4. New Road , Kathmandu, Nepal. Our showroom is open from 11am to 7pm Sunday through Friday.