Learn why “Zero Making Charge” gold offers in Kerala are often misleading. Understand the real cost, how to calculate final prices, and make smarter gold purchases.
You see it everywhere in Kerala: “Zero Making Charge” on gold. It sounds like a great deal. But is it really?
Here’s what most buyers don’t know:
- Gold shops often raise the gold rate to cover the making charge.
- Some add a fixed wastage or processing fee to offset the “zero” claim.
- The final price you pay may be higher than a regular making charge offer.
How to check if the offer is genuine
- Know the gold rate per gram.
Compare it with the market price for the same purity. - Check the wastage or fixed charges.
Even with zero making charge, some shops add hidden fees. - Calculate the final price yourself.
Formula:Final Price = (Gold Rate × Net Weight) + Wastage/Other Charges
Example:
- 22K Gold necklace, 20 grams
- Gold rate: ₹6,000 per gram
- Shop claims zero making charge
- Wastage added: ₹3,000
Calculation:
(6,000 × 20) + 3,000 = ₹1,23,000
Compare with a regular offer with 5% making charge but no hidden fees:
(6,000 × 20) + (6,000 × 20 × 0.05) = ₹1,26,000
The zero making charge offer may save little or nothing.
Questions to ask before buying:
- Is the gold rate higher than the market rate?
- Are there hidden wastage or processing fees?
- How much do I save compared to standard offers?
You can avoid falling for gimmicks by doing a quick calculation. Understanding the final price helps you buy with confidence.
