What the benchmark leaves out

The benchmark is a reference, not a price. It says nothing about making charges, a jeweller’s margin or what a counter will pay on buy-back. None of those are published anywhere, and this site does not estimate them. This page explains what a reader still has to ask in the shop.

Making charges are the first unknown

Making charges cover the labour and design of a piece of jewellery. They are set by the jeweller and vary widely: a simple coin may have a small charge, while an intricate necklace may have a large one. The charge is often quoted as a percentage of the gold value, but it can also be a flat amount.

The benchmark does not include making charges. A buyer who compares two jewellers only on the benchmark will miss the real difference in what they pay. The making charge is the single largest addition to the benchmark, and it is entirely at the jeweller’s discretion.

The jeweller’s margin is the second unknown

The jeweller’s margin is the profit the jeweller adds on top of the benchmark and the making charge. It is not published, and it varies from shop to shop. A jeweller in a high-rent location may have a larger margin than one in a small town.

The margin is often hidden in the final price. A buyer cannot see it directly, but they can infer it by comparing the total price with the benchmark plus making charge. The difference is the margin. A buyer who does not ask about the margin is paying it blindly.

Buy-back rates are the third unknown

When you sell old jewellery back to a counter, the counter pays a buy-back rate. That rate is based on the benchmark, but it is always lower. The counter deducts a margin for itself, and it may also deduct for impurity or wear. The exact deduction is not published.

The benchmark is the starting point for buy-back, but it is not the offer. A buyer who expects to sell at the benchmark will be disappointed. The buy-back rate is set privately by each counter, and it can vary significantly.

None of these are published anywhere

Making charges, jeweller’s margins and buy-back rates are not collected or published by any authority. They are private commercial decisions. This site does not estimate them, because any estimate would be a guess. The site’s methodology refuses any reading that would require such a guess.

This is a hard limit. The benchmark is a public reference, but the final price is a private negotiation. A reader who understands this will not expect the benchmark to answer every question. Some questions can only be answered at the counter.

What to ask in the shop

Before buying, ask for the making charge, either as a percentage or a flat amount. Ask for the purity of the gold, and check it against the benchmark. Ask for the final price per gram, including all charges and taxes. And ask what the buy-back rate would be if you sold the piece back tomorrow.

A good jeweller will answer all these questions. If they will not, walk away. The benchmark gives you the reference, but the answers give you the real price.

The benchmark is a floor, not a ceiling

The benchmark is the minimum a jeweller must pay for the gold content. Everything else is added on top. A buyer who thinks the benchmark is the price will be shocked by the counter price. The benchmark is a floor for the gold value, but the final price is always higher.

This is the most important thing to remember. The benchmark is a reference, not a price. It tells you the value of the gold, but not the cost of the jewellery. The cost is always more, and the difference is the making charge, the margin and the tax.