'0% making charge on gold jewellery': It’s actually costing you more, a banker explains how
Jewellery marketed with 0% making charges often includes embedded stones or embellishments priced well above their real value, offsetting any waived fees.
- Oct 4, 2025,
- Updated Oct 4, 2025 8:44 AM IST
That “0% making charges” tag on gold jewellery? It might cost you more than you think, warns investment banker Sarthak Anuja.
In a LinkedIn post, Sarthak Anuja, an investment banker, cautioned consumers against falling for the popular “0% making charge” pitch used by jewellers. “It’s a marketing trick to attract customers,” he wrote. “And most people don’t realise how they end up overpaying.”
Anuja outlined five hidden ways jewellers still make money—often more than traditional making charges.
1. Inflated Gold Rates: “Consumers Google the gold rate, but jewellers often quote Rs 200 more per gram,” he said. On a 50g purchase, that’s a ₹10,000 markup—effectively a 2% hidden charge.
2. Separate Wastage Charges: While actual gold wastage is 2–3%, jewellers often bill 5%, claiming intricate designs. Worse, this is calculated on today’s higher gold rate—not the original rate when the jewellery was made.
3. Overpriced Stones: Jewellery marketed with 0% making charges often includes embedded stones or embellishments priced well above their real value, offsetting any waived fees.
4. Poor Buyback Terms: While some jewellers promise 90% gold value on buyback, these offers shrink to 70–80% for 0% making charge pieces—another hit to consumers.
5. Wholesale Margins Unshared: Jewellers buy gold at lower wholesale rates, but this benefit is rarely passed to buyers. “And I’m not even counting capital appreciation during bull runs,” Anuja added.
His final advice: “Always check the HUID on the BIS Care app for any jewellery you buy.” This code verifies the purity and authenticity under India’s hallmarking system.
That “0% making charges” tag on gold jewellery? It might cost you more than you think, warns investment banker Sarthak Anuja.
In a LinkedIn post, Sarthak Anuja, an investment banker, cautioned consumers against falling for the popular “0% making charge” pitch used by jewellers. “It’s a marketing trick to attract customers,” he wrote. “And most people don’t realise how they end up overpaying.”
Anuja outlined five hidden ways jewellers still make money—often more than traditional making charges.
1. Inflated Gold Rates: “Consumers Google the gold rate, but jewellers often quote Rs 200 more per gram,” he said. On a 50g purchase, that’s a ₹10,000 markup—effectively a 2% hidden charge.
2. Separate Wastage Charges: While actual gold wastage is 2–3%, jewellers often bill 5%, claiming intricate designs. Worse, this is calculated on today’s higher gold rate—not the original rate when the jewellery was made.
3. Overpriced Stones: Jewellery marketed with 0% making charges often includes embedded stones or embellishments priced well above their real value, offsetting any waived fees.
4. Poor Buyback Terms: While some jewellers promise 90% gold value on buyback, these offers shrink to 70–80% for 0% making charge pieces—another hit to consumers.
5. Wholesale Margins Unshared: Jewellers buy gold at lower wholesale rates, but this benefit is rarely passed to buyers. “And I’m not even counting capital appreciation during bull runs,” Anuja added.
His final advice: “Always check the HUID on the BIS Care app for any jewellery you buy.” This code verifies the purity and authenticity under India’s hallmarking system.