The benchmark behind every figure on this site
Anjali DeshpandeRate desk editorEvery rupee figure on this site comes from the India Bullion and Jewellers Association’s own published rate, announced twice on each trading day. That rate is a benchmark, not a shop’s price. This page explains what the benchmark is, what it is used for, and why it is not the number a jeweller quotes over the counter.
Who publishes the benchmark
The India Bullion and Jewellers Association, a trade body for the bullion and jewellery industry, publishes the benchmark. It is not a government agency, and it is not a single dealer. The association gathers price information from its members and announces a benchmark twice on each trading day.
The benchmark is quoted for gold and platinum per ten grams, and for silver per kilogram. Every figure on this site is converted to one gram before anything is stored, so that comparisons across metals are possible. The association’s rates are published before tax, and this site adds the three per cent goods and services tax only where it shows what a buyer pays.
What the benchmark is used for
The benchmark is the reference used for tax, for lending against jewellery and for buy-back counters. When a tax officer values gold, when a bank lends against a gold ornament, or when a buyer sells old jewellery back to a counter, the benchmark is often the starting point. It is not the final price, but it is the common yardstick.
This is why the benchmark matters even to someone who never buys gold. It influences the value of collateral, the amount of tax due and the buy-back offer. A reader who understands the benchmark understands the base rate on which many other prices are built.
What the benchmark is not
The benchmark is not a shop’s price. A jeweller quotes a price that includes making charges, the jeweller’s own margin and local taxes. That counter price is always higher than the benchmark by an amount that varies from shop to shop and from design to design. The benchmark is the raw material reference, not the finished product price.
It is also not a price at which you can buy or sell gold. You cannot walk into the association and buy a gram at the benchmark. The benchmark is a reference point, not a market. A reader who confuses the two will be surprised by the counter price and may make a poor decision.
Why a jeweller’s counter price is different
A jeweller’s counter price starts with the benchmark, then adds making charges, which cover the labour and design of the piece. It adds the jeweller’s margin, which is the profit. And it adds the goods and services tax. These extras are not published anywhere and vary widely.
For a simple gold coin, the making charge may be small. For an intricate necklace, it may be large. The benchmark does not capture any of this. A buyer who compares two jewellers only on the benchmark will miss the real difference in what they pay. The benchmark is the common foundation, but the counter price is the building on top.
The purity ladder
The association publishes benchmarks for different purities of gold. The most common in India is twenty-four carat, but twenty-two carat and eighteen carat are also quoted. The price falls as purity falls, because there is less gold in each gram. This site checks that the purity ladder falls with purity; if it does not, the reading is refused.
A buyer should know the purity of what they are buying. The benchmark for twenty-four carat is not the price for a twenty-two carat ornament. The difference in purity is a difference in value, and the benchmark makes that difference explicit.
The benchmark and the international price
The Indian benchmark is not set in isolation. It tracks the international gold price, which is quoted in dollars per ounce, and the rupee-dollar exchange rate. When the international price rises, the Indian benchmark rises, all else equal. When the rupee weakens, the Indian benchmark rises, all else equal.
But the Indian benchmark is not simply the international price converted to rupees. There is a domestic premium that reflects import duty, local demand and other factors. This site checks that premium; if it falls outside a band of zero to twenty-five per cent, the reading is refused. That check keeps the benchmark honest.
Benchmark facts
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Questions about the rate
Who publishes the benchmark?
The India Bullion and Jewellers Association, a trade body for the bullion and jewellery industry. It gathers price information from its members and announces a benchmark twice on each trading day. It is not a government agency.
Is the benchmark the same as the shop price?
No. The shop price adds making charges, the jeweller’s margin and taxes on top of the benchmark. The benchmark is the raw material reference, not the finished product price. The difference varies from shop to shop.
Why does the benchmark matter to me?
Because it is used by tax offices, lenders and buy-back counters. It affects the value of collateral, the amount of tax due and the buy-back offer. Even if you never buy gold, the benchmark influences prices around you.
Why are there different benchmarks for different purities?
Because the price of gold depends on how much gold is in each gram. Twenty-four carat is pure gold, twenty-two carat has less gold, and so the price is lower. The purity ladder lets you compare like with like.
Does the benchmark include tax?
No. The association’s rates are published before tax. This site adds the three per cent goods and services tax only where it shows what a buyer pays. The benchmark itself is a pre-tax reference.
A range is a reference, not a recommendation
This site gives you the ground truth of where the benchmark sits against its own recent past. It does not tell you what to do with that. Before any purchase, check the shop’s making charge, its buy-back terms and its purity certificate.