The making charges on gold in Dubai vary from a minimum AED 10 to 15 AED per gram. Experienced buyers understand the importance of breaking down the overall cost, differentiating between the cost of the gold itself and the making charges incurred for crafting the jewelry. Negotiating skillfully is crucial, with the goal of reducing making charges from, typically aiming for a discount of 20-30% on making charges. It’s worth noting that negotiations are more feasible on making charges than on the base gold price.
Making charges for gold jewelry in Dubai are calculated based on the weight of the gold, the purity of the gold, and the labor cost of making the jewelry. The final price of the jewelry is calculated using the formula: price of (22 ct or 18 ct) gold X (weight in grams) + making charges + GST on (price of jewelry + making charges). Making charges can vary between 6% and 14% or more of the total weight of the gold. Some jewelers charge a fixed rate per gram, while others add a specific percentage of the total cost as the making charges. Making charges are not set throughout the nation, and customers can bargain with the jewelers on the making charges. The making charges on gold are higher on 18K as it takes more effort in making contemporary jewelry.
Understanding Gold Jewelry charges per design.
When it comes to buying gold jewelry, there are a few essential things to keep in mind. First, let’s talk about making charges, which can significantly impact your purchase. Simple gold chains typically have a 7% making charge, while more intricate designs often come with higher making charges ranging from 25% to 40%. Always inquire about the making charges associated with a piece of jewelry. Some jewelers might express this cost in terms of grams, so don’t hesitate to convert it into a percentage or ask them to do so for you. Remember, making charges are the one aspect of the price you can negotiate. As your purchase quantity increases, you’ll have more room for negotiation. Usually, you can bring the making charges down by a minimum of 3-5%, and if you’re buying a substantial amount and are skilled at bargaining, you might even achieve a 10% reduction.
It’s worth noting that making charges can fluctuate, especially when the gold rate is low. Sometimes, it seems like jewelers raise their making charges in response to declining gold prices, so always stay vigilant.
Additionally, consider the Value Added Tax (VAT), which amounts to 5% on both the gold rate and the making charges. However, if you’re visiting as a tourist, you can potentially claim a refund of 80-85% on the VAT. To do this, make sure to ask the jeweler to apply a VAT sticker to your bill, and be prepared to provide your passport (a soft copy may suffice). The VAT refund process typically takes place at the airport.
As for shopping destinations, Meena Bazar can be a preferred choice over the gold souq for some individuals. Lastly, to give you a price point for comparison, the lowest 22kt gold rate I’ve come across for a basic men’s gold chain was approximately 202 AED per gram (excluding the 5% VAT).
Can making charges for gold jewelry be negotiated in Dubai?
Yes, making charges for gold jewelry can be negotiated in Dubai. Customers can bargain with the jewelers on the making charges, and some jewelers charge a fixed rate per gram, while others add a specific percentage of the total cost as the making charges. The making charges on gold are higher on 18K as it takes more effort in making contemporary jewelry. According to a gold expert from the Dubai Gold and Jewellery Group, while Dubai’s gold prices are fixed to weight, the only headroom for haggling is on the making price. Many shoppers aim for 25 percent off the quoted price, but customers may need to walk away as a bargaining tool. It is also easier to negotiate in smaller shops or when buying several items. In the gold shops, customers are well protected, and the gold price is set, and the item is weighed before the customer, and if they come to an agreed price, they will get a receipt.
When it comes to purchasing gold jewelry, there are several key considerations to keep in mind. For those seeking pure gold jewelry, opting for 22 carat gold is recommended due to its higher gold content. However, when diamonds are part of the equation, many prefer 18 carat gold for its balance between purity and durability. Moreover, the choice between 22 karat and 24 karat gold depends on the intended use, with 24 karat gold being preferable for investment purposes rather than ornamental use.
Charges on coins and bars.
It’s a common sentiment among those knowledgeable about the industry that buying diamonds is not seen as an investment but rather as a potential loss. Coins, on the other hand, come with no making charges, although some jewelers may impose a nominal packing charge. For ornaments, jewellers may reduce the price by 3-4 dhs per gram to secure a profit, a practice also observed with banks.