---
title: What Is the “Making Charge” or “Wastage” in Gold Jewellery, and How Is It Calculated?
description: "Every gold jewellery price at PureJewels is built from the same open formula: **Price = (Gram Weight × Today’s 22ct Gold Price Per Gram) + Making Charge + VAT at 20%** Nothing in that formula is hidden. Here is exactly…"
url: "https://www.purejewels.com/faqs/gold-prices-rates/what-is-the-making-charge-or-wastage-in-gold-jewellery-and-how-is-it-calculated/"
updated: "2026-10-06"
category: "Gold Prices & Rates"
---

# What Is the “Making Charge” or “Wastage” in Gold Jewellery, and How Is It Calculated?

Every gold jewellery price at PureJewels is built from the same open formula:

**Price = (Gram Weight × Today’s 22ct Gold Price Per Gram) + Making Charge + VAT at 20%**

Nothing in that formula is hidden. Here is exactly what each part means, and a worked example showing how they add up.

## What is a making charge?

The making charge is the cost of the goldsmith’s skill, the time, tools and expertise needed to turn raw gold into a finished piece. It is the one part of the price that isn’t the metal itself, and it rises with how much work the design takes:

- **Plain polished bangles and bands —**the lowest making charge; the goldsmith’s time is minimal.
- **Embossed and engraved pieces —**a medium making charge; surface detailing takes skilled hand work.
- **Jali filigree and handmade pieces —**the highest making charge; these are among the most labour-intensive forms of goldsmithing.

Making charges are also affected by whether a piece is mass-produced or individually crafted. Many of ours, particularly from the Armari and Rosettes collections, are made in limited numbers by our own goldsmiths.

## A worked example

Here is how the formula comes together for a plain 22ct gold bangle weighing 10 grams:

| **Line item** | **Amount** |
| --- | --- |
| Gold value (10g × today’s 22ct rate, ≈ £101/g) | ≈ £1,010 (illustrative) |
| Making charge (plain finish) | 20%-40% |
| Subtotal | gold value + making charge |
| VAT (20%) | 20% of the subtotal |
| Total price | subtotal + VAT |

 

The gold value above uses today’s approximate 22ct rate; update it to the live rate when publishing. The making charge depends on the specific piece, so ask our team for an exact quote before you buy.

## What is wastage?

“Wastage” refers to the small amount of gold lost during manufacturing: the filings, sprues and offcuts that are a normal part of goldsmithing. In practice, it is usually built into the making charge rather than listed as a separate line. At PureJewels, the weight shown on a product listing is the weight of the finished piece, the actual gold you receive, not the raw weight before manufacturing.

Understanding the formula shows what you are really paying for: not simply grams of gold, but a piece that has been designed, worked and finished by hand. Browse our [22ct gold jewellery collection](https://www.purejewels.com/product-category/22ct-gold-jewellery/) to see the designs, each listed with its exact gram weight, or check [today’s gold price](https://www.purejewels.com/faqs/gold-prices-rates/what-is-the-current-gold-price-per-gram-in-the-uk/) to work through the first line of the formula yourself. And if you want gold with no making charge at all, [gold bars and coins](https://www.purejewels.com/product-category/bars-coins/) are priced at just a small premium over the metal.

**By Jayant Raniga, PureJewels Green Street**

*Jayant Raniga is the third-generation director of PureJewels, the family jewellers on Green Street, London, founded by his grandfather Bhanji Gokaldas in Nairobi in 1950.*